Asahi Kasei venturing further into airbag value chain with Vietnam sewing plant

Japanese materials supplier Asahi Kasei is entering the airbag fabric sewing business with the construction of a manufacturing plant in Vietnam.
 
The new facility will be located at the company’s Vietnamese subsidiary, Asahi Kasei Advance Vietnam and is scheduled for operation in 2020, said a company statement 27 Nov.
 
The facility’s production capacity will be incrementally raised to 2.5 million pieces per year until 2022, followed by a second increase to 5 million pieces per year in the coming years, said Asahi Kasei.
 
The investment, the financial details of which were not disclosed, will mark the Japanese company’s first steps towards the “next stage of the value chain” in the airbag industry.
 
The Tokyo-based group supplies airbag manufacturers with yarn made from its flagship Leona PA 66 filament and has invested in a weaver that manufactures airbag fabric.
 
The move is in alignment with Asahi Kasei’s stated ambition to triple the size of its automotive business in the medium term.
 
Vehicle airbags are a major application for Leona PA 66 filament, and the company anticipates demand for the material to continue to grow as vehicle production rises in Asia.
 
The growth will also be driven by regulations surrounding the increased number of airbags per vehicle, particularly with the advent of CASE (connected - autonomous - shared - electric) megatrends and the associated increased safety measures.