Autoliv Will Boost Global Airbag Inflator Capacity 60%

Autoliv Inc. says it will increase its capacity to make propellant for airbag systems by more than half to 164 million units annually over the next few years.

The company says the expansion is needed to pace growth in emerging markets and increases everywhere in the number of airbags per vehicle.

Autoliv, which is incorporated in the U.S. but headquartered in Stockholm, says it will spend $13 million to expand output 30% at its production complex in Promontory, Utah.

The Promontory facility already operates five processing units that make gas-generating inflators for 50 million airbag systems annually half the company's current global capacity. Most of the balance of propellant output is in France.

Last month Autoliv announced it is constructing a $33 million factory outside Shanghai to produce airbag propellant for the Asian market. The Chinese facility, which represents Autoliv's largest single capital expenditure ever, will increase the company's global propellant capacity by another 25%.

The $8 billion company says it controls about 35% of the worldwide market for airbags and other passive safety systems.