[THE INVESTOR] Kolon Industries announced on Sept. 5 that it has acquired the air bag sewing division of Hanyoung Industry for about 17 billion won (US$15.23 million).
The sewing factory in Vietnam produces 7 million air bag cushions a year, and will serve as an operating base for the manufacturing affiliate of Kolon Group that seeks to tackle fast-rising air bag markets in Asia.
The company decided to invest in its first Chinese factory in Nanjing so that it can produce an additional 600,000 from 2017. And is considering extending its second factory in Jurong as well as establishing a third in northeast China.
A Kolon Industries employee inspects a side-impact air bag cushion. Kolon Industries
Kolon Industries currently manufactures 36 million air bag cushions in two factories in China and one in South Korea, taking up about 10 percent of the global market share.
As the newly completed factory in Mexico will start operating this month, with the capacity to make 3 million products a year, the South Korean firm is planning to reach 600 billion won revenue from the air bag sector.
By Hwang You-mee (
glamazon@heraldcorp.com)
