Additional Supply Contract Signed with Largest Customer, Autoliv
New Facility to Be Built at Vietnam Plant... Operations Begin in 2028
Heo Sung: "Global Recognition for Automotive Materials and Parts Capabilities"
Kolon Industries has signed a long-term supply agreement with Autoliv, the world's leading automotive safety parts company, as it moves to expand its airbag materials business. As part of this initiative, the company will invest approximately 70 billion KRW in new fabric production facilities at its key base in Vietnam.
Kolon Industries announced on the 11th that it signed an additional airbag materials supply contract with Autoliv at its headquarters in Gwacheon, Gyeonggi Province, on the 8th. After signing a memorandum of understanding (MOU) for supply cooperation in April, the two companies discussed detailed operational plans before finalizing this agreement. The signing ceremony was attended by Heo Sung, President of Kolon Industries, Mikael Bratt, CEO of Autoliv, and Christian Swahn, Executive Vice President of Supply Chain Management at Autoliv.
Heo Sung, President of Kolon Industries (left), and Christian Swan, Executive Vice President of Supply Chain Management at Autoliv, signed a contract on the 8th at the Kolon headquarters in Gwacheon, Gyeonggi Province, to supply additional airbag materials. Kolon Industries
With the expansion of this partnership, Kolon Industries will invest around 70 billion KRW to build a new fabric production plant in Ho Chi Minh City, Vietnam. Currently, the Vietnam plant manufactures airbag cushions using fabric imported from Korea and China. Once the new weaving, processing, and coating facilities are operational, the company will establish an integrated production system covering everything from fabric to cushion. Kolon Industries plans to strengthen its long-term cost competitiveness and quality stability by applying the latest process technologies.
Autoliv is the world's top supplier of core safety components such as airbags, seat belts, and steering wheels to global automobile manufacturers. The company operates 65 business sites and 13 research centers in 25 countries, with annual sales reaching approximately 14 trillion KRW. Kolon Industries is the world's second-largest supplier of airbag materials, with production bases in China, Vietnam, Mexico, and other countries. Among Kolon Industries' customers, Autoliv is the single largest client.
The new plant in Vietnam will begin operations in 2028. After entering the production stabilization phase by 2029, Kolon Industries expects to begin full-scale supply to Autoliv from 2030, aiming for annual sales of over 50 billion KRW.
President Heo Sung stated, "This long-term supply agreement is further recognition of Kolon Industries' automotive materials and components capabilities in the global market." Christian Swahn, Executive Vice President of Autoliv, commented, "Kolon Industries is a global partner with production bases in Asia, China, and North America, and is one of Autoliv's most trusted collaborators. We look forward to continuing our close cooperation in the future."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
