Autoliv has started an in-house textile airbag cushion operation in its facility in Jiading, Shanghai.

“We needed to secure reliable supply to support our business in the booming Chinese market”, said Autoliv CEO Jan Carlson. “By making a significant portion of textile cushions in our own plant and not relying on external suppliers, we will take even more advantage of the favourable cost structure in China to remain cost competitive in this important market”.

The new operations will have capacity to produce 4.5m airbag cushions, when fully used, and 450 employees. The floor space is 3,000 sq m.

Autoliv has nine plants in China and claims to be the leading automotive safety system supplier in China.

Last year, sales there grew 67% and are this year expected to rise 50% to over US$700m. Chinese light vehicle production is expected to increase 20%.