Toyoda Gosei is to establish a new plant in Vietnam to meet growing demand for airbags as safety regulations become more stringent.
The new site will start as a branch plant of Toyoda Gosei subsidiary, Toyoda Gosei Haiphong (TGHP) and will begin production of airbag parts and steering wheels in July, 2019 for export to final airbag assembly plants in Japan, North America, Europe and other regions.
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Investment for the new plant will be US$24.6m and construction will start in March next year.
Airbags and other safety system products are a key business segment for Toyoda Gosei and the company is moving to strengthen its production capacities for these products globally.
Annual production capacity for these products in Vietnam was 14.5m airbag parts and 2.2m steering wheels in FY2016. The company plans to increase this to 23m airbag parts and 3.2m steering wheels by FY2023.
The number of employees is expected to be around 1,000 from 31 March, 2021.
