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Autoliv Outsources Plastics Components

23 December 1998

Autoliv Outsources Plastics Components

    STOCKHOLM, Sweden, Dec. 22 -- Autoliv Inc.
, a worldwide leader in automotive safety systems, has decided
to sell its plastic production operations in Sweden to Dynoplast group, a
Norwegian specialist in the development and manufacture of plastics components
and systems for the automotive and electronics industries.
    "The divestiture frees production space and other resources for the new
seat belt, airbag and  anti-whiplash systems that will be phased in over the
next few years," explained Autoliv's Chairman and Chief Executive Officer
Gunnar Bark.
    "In the past, we have been obliged to increase Autoliv's vertical
integration in order to achieve necessary cost savings.  Now we can see
improvements in our supplier base.  Consequently, outsourcing has become
attractive in some cases," concluded Gunnar Bark.
    Autoliv's plastics operations in Sweden manufacture covers for airbag
modules and seat belt components in plastics.  Annual production currently
amounts to SEK 40 million (US $5 million).
    The Dynoplast Group has 1,700 employees at 17 production units in nine
countries in Europe and Canada.  Annual sales total US $240 million.  In
Sweden, Dynoplast has manufacturing in Soderkoping and a product development
department in Gothenburg.  With its expertise, the development department will
assist Autoliv in designing plastic components for Autoliv's airbags and other
future automotive safety systems.
    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.)