Toyoda Gosei and Nippon Kayaku have agreed to a capital alliance for greater cooperation in their airbag business.
Toyoda Gosei has purchased inflators, a key component in airbags, and other products from Nippon Kayaku for decades, and the two companies have built, they said, "an outstanding business relationship".
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The demand for airbags is growing rapidly as safety regulations become stricter around the world, and this capital alliance will help the two companies in their aim to strengthen stable supply and quality assurance systems for airbags worldwide.
The environment in the automobile industry is undergoing major changes with progress in autonomous driving and the move toward electric vehicles, and the two companies will also work together in the field of new materials as well as safety, collaborating in the development of new products with an eye on the future.
Each company will hold approximately JPY1bn (US$9.1m) of the other company's shares.
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