Toyoda Gosei Co. Ltd will establish a new plant in Vietnam to meet the growing demand for airbags as safety regulations become stricter in regions around the world.
Construction of the new $ 24.6 million (€ 20.6 million) plant will begin in March 2018 with production of airbag and steering wheel parts beginning in July 2019.
The new facility will be established in Tien Hai Industrial Park, Thai Binh Province, and will be a branch of Toyoda Gosei subsidiary Toyoda Gosei Haiphong Co., Ltd. (TGHP).
Products from the plant will be exported to final airbag assembly plants in Japan, North America, Europe and other regions, the Japanese automotive supplier announced on August 30.
Upon completion, the unit is expected to employ 1,000 employees.
The company produced 14.5m airbag parts and 2.2 million steering wheels in Vietnam in 2016 and aims to increase the figures to 23 million airbag parts and 3.2 million steering wheels by fiscal 2023.
Airbags and other security system products are a key business segment for Toyoda Gosei, and the company is moving to strengthen its production capabilities for these products globally.
