Autoliv has said that it has agreed to buy the outstanding 41% shares in its Chinese partner company, Autoliv (Changchun) Maw Hung Vehicle Safety Systems, for around USD14m.

The Chinese company, which is one of Autoliv's nine manufacturing facilities in China, is now wholly owned by Autoliv.

The venture was formed in 2002 to deliver safety products primarily to FAW- Volkswagen Jetta, Audi A6 and First Automotive Works.

"Business has grown rapidly, and this year the company expects to reach USD260m in sales and employ 170 people," said Autoliv.

Sales have increased 40% from 2006, it added.

The acquisition is subject to governmental approval.