Autoliv to build third $13m plant in Brasov

Swedish company Autoliv will add a $13m plant manufacturing airbag gas generators to its investments in Brasov, according to information released by the company.

The new plant, which will start production in the second half of next year, is the third unit owned by the Swedish group in Brasov, beside the safety belts factory (being expanded) and the plant producing textile material for safety belts (under construction).

The plant manufacturing gas generators (the most expensive and technologically complex parts in the airbag system), located in Brasov, is the first the Swedish are building in one of the countries with cheap workforce, such as Romania. The reason for building this plant in Romania, according to the Swedish company, is the constant price cutting pressure exerted by carmakers.

The Brasov-based plant will have a capacity of 15 million units per year and will strengthen Autoliv”s position on the East-European market. The plant in Romania will produce both new models of gas generators, as well as versions that have been in use for some time.

Investments aimed at Romania are part of Autoliv”s programme targeting the relocation of some operations in a series of Eastern European states with cheap and skilled labour force.

The same policy has been embraced by other important groups in the automobile and accessories industry, such as Continental.

The German group has invested more than 140m euros in a tyre plant in Timisoara and subsequently announced, through the various units of the group, the construction of another two plants in the same city and one in Sibiu.

The car parts industry has lured other important names onto the Romanian market so far, and they have invested or are about to invest hundreds of millions of euros in plants located in various regions of the country.

Delphi, Dura Automotive, Takata Petri, Yazaki, Valeo and Draexlmeier already have production units in various cities of Romania.

ionut.bonoiu@zf.ro