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Thu, October 7, 2010
Wed, October 6, 2010
Autoliv Expands in India Starts Weaving of Seatbelt Webbing
STOCKHOLM--([ BUSINESS WIRE ])--Regulatory News:
In response to the rapid growth in Asian vehicle production, Autoliv Inc. (NYSE:ALV) (STO:ALIVSDB) a" the worldwide leader in automotive safety systems a" has begun the construction of a seatbelt weaving plant in Mysore near Bangalore, which will be Indiaa™s first plant for this seatbelt component.
Currently, most seatbelt webbing is imported from Autoliva™s plant in China. However, demand in Asia has grown so sharply during the last few years that more webbing capacity is urgently needed in the region.
The Mysore webbing plant will have capacity to produce 100 million meters of webbing when the floor space of 10.000 square meters (sqm) will be fully utilized. In the initial phase, the plant will have 65 employees and 180 employees when all investments in highly automated weaving looms have been completed. The cost for the initial phase amounts to approximately 10 million U.S. dollars, which includes the cost for the 24,000 sqm site.
The new weaving facility will produce state-of-the-art seatbelt webbing. The webbing is a very important and complex component in the seatbelt system. It has to have high strength combined with a certain elongation, without causing a rubber-band effect. At the same time, the webbing should have low friction and prevent twisting to provide comfort and safety.
The new plant will increase Autoliva™s global weaving capacity for seatbelt webbing by 20% to more than 0.5 billion meters (or approximately 12 laps around the earth). Currently, Autoliv has five webbing plants (in The Netherlands, Romania, Canada, China and Brazil). Autoliv estimates that its existing plants account for more than 40% of the annual global seatbelt webbing production. The customers of these plants include not only Autoliva™s own seatbelt system assembly plants but also assembly plants of other seatbelt manufacturers.
According to industry estimates Indian light vehicle production doubled during the past five years (to 2.4 million last year from 1.2 million in 2004) and is expected to double again during the current five-year period to 5 million by 2014.
About Autoliv
Autoliv Inc., the worldwide leader in automotive safety systems, develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures, Autoliv has 80 facilities with more than 41,000 employees in 28 vehicle-producing countries. In addition, the Company has technical centers in eleven countries around the world, with 21 test tracks, more than any other automotive safety supplier. Sales in 2010 are expected to grow to by nearly 35% to US $6.9 billion. The Company's shares are listed on the New York Stock Exchange (NYSE: ALV) and its Swedish Depository Receipts on the OMX Nordic Exchange in Stockholm (ALIV sdb). For more information about Autoliv, please visit our company website at [ www.autoliv.com ]([ http://www.autoliv.com/ ]).
Safe Harbor Statement
This release contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). All such statements are based upon our current expectations and various assumptions, and apply only as of the date of this report. Our expectations and beliefs are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that forward-looking statements will materialize or prove to be correct. Because such statements involve risks and uncertainties, the outcome could differ materially from those set out in the statements. For a summary of such risk factors, please refer to our latest 10-K and 10-Q filed with the SEC. Except for our ongoing obligation to disclose information under law, we undertake no obligation to update publicly any forward-looking statements whether as a result of new information or future events. For any forward-looking statements contained in this or any other document, we claim the protection of the safe harbor for forward-looking statements contained in the PSLRA.
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