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Autoliv Starts Joint Venture in Japan

20 October 1998

Autoliv Starts Joint Venture in Japan

    STOCKHOLM, Sweden, Oct. 20 -- Autoliv Inc.
, a worldwide leader in automotive safety systems, has
entered into an agreement to form a joint venture in Japan with the chemical
company NOF for the manufacture of inflators for airbags.  The inflators,
which will be based on Autoliv's technology, will be produced in a new plant
currently under construction in Taketoyo, 40 km from Nagoya.  Autoliv will
hold 60 percent of the shares in the joint-venture company Autoliv-Nichiyu Co.
Ltd. Production will start next year.
    "This is yet another example of Autoliv's commitment to the Japanese car
industry," said Autoliv's Chairman and Chief Executive Officer Gunnar Bark.
"As recently as April of this year, we acquired a plant in Japan for assembly
of airbag modules.  Four months later, we decided to build a crash test
facility in Japan, and now we are taking this third step by increasing the
content of locally manufactured key components.  All of these steps are part
of our strategy of global presence with both manufacturing and engineering
resources located close to our customers.  Since Autoliv's US company has had
a marketing cooperation with NOF since 1988, we know the company quite well
and we are looking forward to expanding our business relationship with NOF,"
concludes Mr. Bark.
    Autoliv is a major supplier of airbags to Toyota, Nissan, Honda,
Mitsubishi and Mazda in Japan as well as in many other countries.  Autoliv is
also the leading supplier of airbag inflators to the Japanese car industry.
NOF's President and CEO, Mr. Masayasu, said "We are very happy to launch a
joint venture with Autoliv for the manufacture of inflators for airbags.  We
believe that this joint venture will meet our customers' needs.  Since one of
our affiliated companies is engaged in the business of automotive safety
components, we look forward to further expanding our relationship with
Autoliv, a relationship which we have enjoyed for a long time."
    The NOF Corporation is one of the major diversified chemical companies
with the longest history in Japan, having its Head Office in Tokyo.  With a
catchphrase "From the Biosphere to Outer Space", NOF business spans a wide
range of fields, including oleo and specialty chemicals, organic chemicals,
explosives and propulsion, coating, food products, welding materials and a new
business development.  NOF has 52 wholly-owned companies and joint ventures in
9 countries.  Sales in 1997 totaled 118 billion Yen (US $1 bn) and net profit
5.3 billion Yen (US $50 million).  The company's shares are listed on the
Tokyo Stock Exchange and other major stock exchanges in Japan.

    Autoliv Inc. develops and manufactures automotive safety systems for all
major automotive manufacturers in the world. The company has 60 wholly-owned
subsidiaries and joint ventures with close to 20,000 employees in
27 vehicle-producing countries. In addition, the company has eight technical
centers around the world, including 19 test tracks, more than any other
automotive safety supplier. Sales in 1997 totaled US $3.3 billion and net
income US $185 million. The company's shares are listed on the New York Stock
Exchange , its Swedish Depositary Receipts on the Stockholm Stock
Exchange (SSE: ALIV) and its stock options on the Chicago Board Options
Exchange (CBOE: ALV.)