US airbag maker Simula Inc. plans to move airbag production from its Phoenix, Arizona, home base to an unspecified location in Mexico, according to a report in the Arizona Republic newspaper.
The company announced on September 5 its decision to shift all US-based airbag module production to a contracted manufacturer, but it gave no further details.
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In a statement posted on its website, the company said that the change would “reduce production costs and increase competitiveness.
“The division anticipates that the relocation will be completed in the fourth quarter of this year.”
According to the statement, the company will retain its headquarters, technology centre, sales and engineering staff in Phoenix, Arizona, as well as its volume-manufacturing site near Newcastle in northeastern England.
Simula, a specialist in developing and producing safety devices for the automotive industry and military aviation, includes Delphi Corporation and TRW Inc among its main competitors in the automotive airbag market.
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By GlobalDataIt employs about 14 people on airbag production in Pheonix, according to the Arizona Republic. It employs a total of about 330 workers in Arizona, 100 in North Carolina and 150 in the UK.
