This photo, taken on Dec. 8, 2025, and provided by Kolon Industries, shows the company’s CEO Huh Sung (L) and Christian Swahn, executive vice president overseeing global supply chain management at Autoliv, posing after signing an airbag materials supply deal at Kolon Industries’ headquarters in Gwacheon, just south of Seoul. (Yonhap)
SEOUL, Dec. 11 (Korea Bizwire) — Kolon Industries, a South Korean chemical and specialty materials company, plans to build a new plant in Vietnam to supply additional airbag materials to Autoliv, the company said Thursday, as it expands its automotive materials business.
Kolon will invest 70 billion won (US$48 million) to construct a fabric production facility in Ho Chi Minh City, with initial output under the supply deal set to begin in 2028, the company said in a press release.
The agreement follows a memorandum of understanding (MOU) signed between the two firms in April. Sweden-based Autoliv is the world’s largest automotive safety supplier.
Kolon said the new plant is expected to generate more than 50 billion won in annual sales from 2030.
“This long-term supply deal demonstrates Kolon Industries’ automotive materials capabilities are recognized globally,” Kolon Chief Executive Officer (CEO) Huh Sung said.
Autoliv Executive Vice President Christian Swahn said Kolon remains one of the company’s most trusted partners, with production bases across Asia, China and North America.
Kolon, the world’s second-largest supplier of airbag materials, currently operates airbag manufacturing facilities in China, Vietnam and Mexico.
Its existing Vietnam plant has produced airbag cushions using fabric manufactured in Korea and China. The new investment will enable a fully integrated production system in Vietnam, covering fabric to finished airbag cushions, the company said.
(Yonhap)
