Toyoda Gosei builds fourth airbag manufacturing plants in VietnamAugust 31,2017 | 14:08 pm
Toyoda Gosei Co., Ltd. has released plans on its website to build the fourth airbag manufacturing plant in the northern city of Haiphong to meet the growing demand as safety regulations become more stringent in regions around the world.
The Japanese company is stepping up production to satisfy increasing global demand
The plant named Toyoda Gosei Haiphong Co., Ltd. has a total investment capital sum of $24.6 million. The construction is expected to start in March 2018 and the plant is expected to start 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.
In 2004, Toyoda Gosei established the first plant to manufacture airbag parts with the investment capital of $74.95 million. To date, Toyoda Gosei has three plants in operation in Haiphong's Nomura Industrial Zone.
In 2016, the plants’ production capacity was 14.5 million airbag parts and 2.2 million steering wheels. The figures are expected to reach 23 million airbag parts and 3.2 million steering wheels by 2023.
Established in 1949 and headquartered in Kiyosu, Aichi Prefecture, Japan, Toyoda Gosei is a leading specialty manufacturer of rubber and plastic automotive parts and LEDs. Today, Toyoda Gosei Group provides a variety of high-quality products internationally, with a network of approximately 100 plants and offices in 18 countries and regions.
Airbags and other safety system products are a key business segment for Toyoda Gosei and the company is moving to strengthen its global production capacities.
Earlier in November 2016, South Korean Kolon Industries Inc. and leaders of the Binh Duong People’s Committee signed a memorandum of understanding (MoU) to confirm the South Korean firm’s investment plan to develop a $1-billion factory manufacturing airbags and industrial fabric for automobile tires in the southern province of Binh Duong.
In the framework of the event, a representative of Kolon Industries announced a land lease contract with Investment and Industrial Development Corporation (Becamex IDC). Accordingly, Kolon Industries will rent a 42-hectare area in Becamex IDC’s expanded Bau Bang Industrial Park to construct the factory.
According to Kolon Industries’ plan, the investment capital of $1 billion will be disbursed in three phases. The first phase, with a total investment capital of $220 million, will be disbursed in 2017-2018, and the second phase will be finished by 2026 with $600 million. The $1-billion mark will be hit sometime after 2026.