STOCKHOLM, Sweden -- Autoliv has started an in-house textile cushions operation in its airbag module facility in Jiading, Shanghai, in response to increasing business in China.

Last year, Autoliv’s sales in China grew 67 percent and are this year expected to grow by 50 percent to exceed $700 million. Chinese light vehicle production is expected to grow by 20 percent.

“We needed to secure reliable supply to support our business in the booming Chinese market,” said CEO Jan Carlson. “By making a significant portion of textile cushions in our own plant and not relying on external suppliers, we will take even more advantage of the favorable cost structure in China to remain cost competitive in this important market.”

The new operations will have capacity to produce 4.5 million airbag cushions when fully utilized, with a staff of 450 employees.

Autoliv has nine plants in China and is the leading automotive safety system supplier in the country, both to the global vehicle manufacturers and domestic Chinese vehicle manufacturers. Recently, the company opened a test facility that can crash test complete cars to support its customers in China.