Ho chi minh city: Kolon Industries, a South Korean company specializing in chemicals and specialty materials, has announced plans to build a new production facility in Vietnam. This plant is set to supply additional airbag materials to Autoliv, marking an expansion in Kolon's automotive materials business.

According to Yonhap News Agency, Kolon Industries will invest 70 billion won, approximately US$48 million, to establish the fabric production facility in Ho Chi Minh City. The initial output from this new plant is expected to commence in 2028 under a supply agreement following a memorandum of understanding (MOU) signed between Kolon and Autoliv in April. Autoliv, headquartered in Sweden, is recognized as the world's largest automotive safety supplier.

The new plant is anticipated to generate over 50 billion won in annual sales starting from 2030, as stated by Kolon. The company's CEO, Huh Sung, highlighted that this long-term supply deal underscores Kolon Industries' global recognition in automotive materials capabilities.

Christian Swahn, Executive Vice President of Autoliv, expressed confidence in Kolon, citing it as one of Autoliv's most trusted partners with production bases spread across Asia, China, and North America. Kolon Industries is currently the world's second-largest supplier of airbag materials, operating manufacturing facilities in China, Vietnam, and Mexico.

The existing plant in Vietnam has been producing airbag cushions utilizing fabric manufactured in Korea and China. The new investment is projected to create a fully integrated production system in Vietnam, encompassing the entire process from fabric production to finished airbag cushions.