Autoliv plans to relocate all production and inflator-related engineering from Vargarda, Sweden to existing locations in Romania and France, a media report said.

This is one of several strategic measures being taken to increase productivity and efficiency within Autoliv Europe the company said in a press release cited by SeeNews.com.

The plan is to relocate the majority of production to an existing Autoliv factory in Brasov, Romania, and the inflator engineering to existing locations in France and Romania.

"This is part of a global optimisation initiative that Autoliv initiated earlier in 2020. These are very hard decisions to take but necessary to meet our customers' demands and to remain competitive. We will do our best to support our employees during this transition period," Autoliv president Frithjof Oldorff said in a statement.

The company employs 400 at Vargarda, of whom 150 will be affected by the planned relocation that is expected to be finalised during the first half of 2024.

These plans are subject to ongoing union negotiations, Autoliv said.

Autoliv will maintain a presence in Vargarda with its global innovation centre focusing on research, development and engineering of existing and new products within the mobility safety area. 

SeeNews said Autoliv opened its first factory in Romania in 1997. The company now has 10 production plants and two engineering centers in the country. The company employed 8,581 in Romania at the end of 2019, data from the Romanian finance ministry showed.