Kolon Industries breaks ground on airbag fabric factory in Vietnam with W70b investment

Kolon Industries held a ground-breaking ceremony Tuesday in Ho Chi Minh City, Vietnam, for a new factory that will produce airbag fabric, the company announced Wednesday.

The ceremony was attended by Kolon Industries President Heo Sung and AMS Business Division Head Park Yong-woo, along with Autoliv Senior Vice President of Purchasing Christian Swahn and other senior executives from both companies.

The new Vietnam factory stems from a supply contract Kolon Industries signed with global automotive safety parts maker Autoliv in December last year for airbag fabric. Construction will require an investment of 70 billion won ($52.7 million), with completion scheduled for June next year. Deliveries to Autoliv are set to begin in January 2028.

The company plans to stabilize production and expand supply volumes through 2029. Once full-scale deliveries begin in 2030, Kolon Industries expects the Vietnam factory alone to generate more than 50 billion won in annual sales.

The investment will see weaving, processing and coating equipment installed at the Vietnam facility, establishing an integrated production system covering everything from fabric manufacturing to cushion production.

"This Vietnam factory is an investment to ensure stable supply of world-class airbag materials to Autoliv, one of our most important customers," President Heo said. "We will continue to strengthen our competitiveness in the global automotive materials market on the back of differentiated technology and production capabilities."

Swahn said Kolon Industries had reliably supplied high-quality airbag materials meeting Autoliv's stringent product standards for about 30 years. "We look forward to the Vietnam factory playing a major role in expanding the global competitiveness of both Kolon Industries and Autoliv," he added.