Strong Foothold in North America
According to industry sources on August 7, Kolon completed the construction of its airbag cushion production plant in Ramos Arizpe at the middle of last month and has started operation.
The plant, which can produce up to 1 million units of airbag cushions a month, supplies the products to Mexican plants of numerous automakers, including Kia Motors. Kolon plans to expand the size of its plant from the current 4,200 square meters to 30,000 square meters within three years.
It is the company’s first airbag production plant in Mexico. The movement aims to target Hyosung, which has entered the Mexican market before Kolon. Kolon considers high performance chemical fibers for cars, including airbag, its future growth engine, focusing on the sector.
The company has chosen Mexico because many automakers are promoting the country as their next-generation production base. Since Mexico is bordered by the United States on the north and has low labor costs, it is the best spot to target the North American market. Moreover, Mexico has a network of free trade agreements (FTAs) with nearly 50 countries around the world, allowing it to export the product to the global market more easily. Global automakers, such as Kia Motors, General Motors, Ford, Toyota and BMW, have established their plants in Mexico or plans to expand them.
Ramos Arizpe is in where GM produces the car models of its flagship brands such as Cadillac, Saab and Buick. The city is also near to the Nuevo Leon state where is crowded with the production plants of global carmakers.