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Daicel Adds Capacity for Replacement Airbag Inflators

Daicel Corp. is adding an unspecified amount of capacity to make replacement airbag inflators for defective Takata Corp. units being recalled by at least 10 carmakers.

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Daicel Corp. is adding an unspecified amount of capacity to make replacement airbag inflators for defective Takata Corp. units being recalled by at least 10 carmakers.

The supplier will add production lines and hire about 100 workers in Japan this summer, The Nikkei reports. The newspaper says the size of the expansion will be determined by the pace and scale of the currently expanding Takata campaigns.

Carmakers have called back some 24 million vehicles worldwide in the past six years to replace Takata inflators, which can explode when triggered. Daicel tells The Nikkei it will supply replacements for Honda Motor Co., Takata's largest customers, and other carmakers.

Daicel joins Autoliv, which earlier announced it was adding capacity to make replacement airbag inflators. Takata is expanding its own capacity, but still won't have the ability to quickly meet recall demands.

Gardner Business Media - Strategic Business Solutions