Kolon plans to construct a new airbag factory in Vietnam

Kolon Industries Inc., a leading South Korean company in the chemicals and textiles sector, has announced plans to invest KRW 70 billion (approximately USD 48 million) in establishing a new facility in Vietnam. This plant will focus on producing airbag materials for Autoliv, one of the world's largest manufacturers of airbag and seatbelt systems.

The announcement comes after the two companies reached an agreement to boost the supply of airbag materials. Kolon, the second-largest global supplier of these materials, confirmed that the new production site will be located in Ho Chi Minh City. The facility is expected to begin operations by 2028.

Currently, Kolon operates a plant in Vietnam that produces airbag cushions using fabrics imported from South Korea and China. The new plant will expand Kolon's capabilities by adding both fabric manufacturing and complete airbag production in Vietnam. This integrated operation is anticipated to generate annual sales of KRW 50 billion by 2030 once it is fully operational.

Kolon also has airbag production facilities in South Korea, China, and Mexico, reinforcing its global presence in the automotive industry. CEO Huh Sung remarked, "This long-term supply agreement demonstrates the international recognition of Kolon Industries' expertise in automotive materials."

Christian Swahn, Executive Vice President at Autoliv, reaffirmed Kolons role as one of their most trusted partners, further solidifying the long-standing relationship between the two companies.

Sources:

• Kolon to build new airbag plant in Vietnam