KOLON Industries Invests KRW 70 Billion in Vietnam Plant

KOLON Industries Invests KRW 70 Billion in Vietnam Airbag Fabric Plant

South Korea’s KOLON Industries plans to invest approximately KRW 70 billion to establish an airbag fabric production plant in Ho Chi Minh City, Vietnam. The investment follows an airbag fabric supply agreement signed with Autoliv in December 2025. The facility is scheduled for completion in June 2027, with deliveries to Autoliv expected to begin in January 2028. The project will expand KOLON Industries’ manufacturing operations in Vietnam by adding local airbag fabric production to its existing airbag cushion manufacturing activities. By integrating these processes within the country, the company intends to establish a localized production system supporting its supply relationship with Autoliv.

Vietnam Plant Investment and Production Timeline

The planned investment of approximately KRW 70 billion will establish a dedicated airbag fabric production facility in Ho Chi Minh City. According to the announced schedule, construction is expected to be completed in June 2027, followed by the commencement of product deliveries to Autoliv in January 2028. These milestones establish the intended sequence from facility development to commercial supply. The project is linked directly to the supply agreement signed in December 2025, providing the stated commercial context for the investment. The company’s plans also extend beyond the initial production launch, with an objective to stabilize manufacturing operations and increase supply volumes through 2029 before reaching its longer-term sales target.

Production Capacity and Annual Sales Target

South Korea-based KOLON Industries expects the new Vietnamese facility alone to generate annual sales of at least KRW 50 billion beginning in 2030. The company plans to stabilize production and increase supply volumes through 2029, indicating that the period following the scheduled 2028 delivery launch will be important to its production ramp-up. The announced sales figure is a company expectation rather than a reported result, and the source does not specify the plant’s production capacity, workforce, or expected utilization rate. Nevertheless, the target establishes a measurable commercial objective for the investment and connects the facility’s planned operational development with its longer-term revenue expectations.

Integrated Airbag Fabric and Cushion Manufacturing in Vietnam

KOLON Industries has previously supplied airbag fabric manufactured in South Korea and China to its Vietnamese plant, where the material is used to produce airbag cushions. The new investment will add fabric manufacturing locally, allowing the company to establish an integrated production system covering both airbag fabric production and cushion manufacturing in Vietnam. This represents a change in the company’s stated manufacturing arrangement within the country, bringing the two production stages together locally instead of relying on fabric supplied from its other manufacturing locations. The source does not specify whether the transition will eliminate all external fabric supplies, but it confirms that the company intends to build a local system encompassing both processes.

Autoliv Supply Agreement and Commercial Relationship

The investment follows the airbag fabric supply agreement that KOLON Industries signed with Autoliv in December 2025. Product deliveries from the new Vietnamese facility are scheduled to begin in January 2028, after the plant’s planned completion in June 2027. The agreement therefore provides the immediate commercial context for developing the facility, although the source does not disclose contract duration, committed volumes, pricing, or other contractual conditions. KOLON Industries’ stated objective to stabilize production and increase supply volumes through 2029 indicates that manufacturing operations are expected to develop progressively after deliveries begin. The planned facility and integrated production system will support the company’s intended airbag fabric and cushion manufacturing activities in Vietnam.

Industry Impact & Outlook

KOLON Industries’ planned investment could strengthen the local integration of automotive safety-component manufacturing in Vietnam by bringing airbag fabric production closer to its existing cushion manufacturing operations. For Autoliv, the scheduled deliveries create a prospective supply arrangement supported by a dedicated production facility, although the source does not establish the agreement’s expected volumes or its effect on procurement costs. The planned completion in 2027, delivery launch in 2028, and production expansion through 2029 provide the key milestones for assessing execution. The target of at least KRW 50 billion in annual sales from 2030 will depend on the facility’s operational development and commercial performance. The project’s significance will therefore be measured by its ability to establish integrated local manufacturing and achieve the company’s stated sales objective.

Frequently Asked Questions

1. How much will KOLON Industries invest in its Vietnam airbag fabric plant?
KOLON Industries plans to invest approximately KRW 70 billion to establish an airbag fabric production plant in Ho Chi Minh City, Vietnam. The investment follows a supply agreement signed with Autoliv in December 2025. The facility is intended to expand the company’s Vietnamese manufacturing operations by adding local fabric production to its existing airbag cushion manufacturing activities. The source does not disclose the project’s detailed construction budget, production capacity, or workforce requirements. The announced investment amount represents the planned expenditure for the new facility.

2. When will the new Vietnam plant begin production and deliveries?
The new KOLON Industries airbag fabric plant in Ho Chi Minh City is scheduled for completion in June 2027, with product deliveries to Autoliv expected to begin in January 2028. These dates establish the announced timeline for facility completion and the start of commercial deliveries. The company also plans to stabilize production and increase supply volumes through 2029. The source does not provide a more detailed commissioning schedule or specify when full production capacity will be reached. The announced dates are planned milestones rather than confirmation that construction or deliveries have already occurred.

3. What annual sales does KOLON Industries expect from the Vietnam plant?
KOLON Industries expects the new Vietnamese plant alone to generate annual sales of at least KRW 50 billion beginning in 2030. This target follows the planned delivery launch in January 2028 and the company’s intended production stabilization and supply-volume increases through 2029. The figure is a forward-looking company expectation, not a confirmed financial result. The source does not disclose projected production volumes, individual product prices, or a detailed revenue forecast. Achievement of the target will depend on the facility’s operational development and commercial performance after production and deliveries begin.

4. How will the investment change KOLON Industries’ manufacturing operations in Vietnam?
The investment will add local airbag fabric production to KOLON Industries’ existing airbag cushion manufacturing operations in Vietnam. Previously, the company supplied fabric produced in South Korea and China to its Vietnamese plant for cushion manufacturing. The new facility is intended to establish an integrated local production system covering both fabric production and cushion manufacturing. This arrangement will bring the two manufacturing stages together within Vietnam. However, the source does not state that all fabric imports will cease or provide details about how existing supply arrangements will change after the new plant becomes operational.

5. What is Autoliv’s role in the Vietnam plant investment?
Autoliv is the customer named in the airbag fabric supply agreement that KOLON Industries signed in December 2025, providing the commercial context for the planned investment. Product deliveries from the new Vietnamese facility are scheduled to begin in January 2028, following the plant’s planned completion in June 2027. The source does not specify the agreement’s duration, contracted supply volumes, pricing, or exclusivity conditions. It also does not identify additional customers for the facility. The disclosed information establishes the planned supply relationship and delivery timeline without confirming the agreement’s broader commercial terms.

6. Why is KOLON Industries establishing an integrated production system in Vietnam?
KOLON Industries intends to establish an integrated production system in Vietnam that covers both airbag fabric manufacturing and airbag cushion production. Its existing Vietnamese operations have used fabric produced in South Korea and China to manufacture cushions. Adding local fabric production will bring these two stages together within the country. The source does not explicitly identify cost reductions, shorter lead times, or other quantified operational benefits as reasons for the investment. The stated plan nevertheless establishes local integration as a central outcome of the project, alongside the company’s objectives to stabilize production, increase supply volumes, and achieve its annual sales target from 2030.