Autoliv In Seat Belt Joint Venture In China

Autoparts Report, Sept 16, 2002

Autoliv Inc. - the worldwide leader in automotive safety systems - will commence operations in Northern China in accordance with a business license recently granted by the Chinese authorities. A new company will be formed as a joint venture between Autoliv (59 percent) and Maw Hung Industrial Corp. (41 percent) in the city of Changchun.

At the beginning of next year, this joint venture will acquire the existing assets and business of Changchun Engley (formerly Harbin Engley). This existing business supplies mainly seat belts.

Autoliv's new company, however, will also offer airbags and a range of sophisticated safety system solutions to the rapidly developing automotive market in China. Initial contracts are for the supply of the Audi A6, the Volkswagen Jetta A2 and for local Chinese vehicle manufacturers.

The new company will be called Autoliv (Changchun) Maw Hung Vehicle Safety Systems Co., Ltd. This venture will bring the total number of Autoliv companies in China to six.