Autoliv, the world's largest maker of air-bags inflators, announced Thursday it will make approximately 25 million of the components to supply automakers that have recalled vehicles in order to replace parts made by Takata.
The company, which is known across the world for its auto-safety devices, is also in discussions to supply "millions of addition units."
The Stockholm-based Autoliv has reached agreements with a number of companies to expand its capacity for making inflators and will start supplying them in 2015 and 2016, the company said in a press statement.
In order to make the new inflators, Autoliv said it will expand its factory complex in Utah. An expansion will likely cost anywhere between $30 million to $50 million, according to a company estimate released last month.
It will take six months or so in order to expand production.
Takata's biggest customer, Honda, has recalled more than 20 million vehicles to replace faulty Takata airbags that deploy with too much force. Takata inflators have been rupturing bags causing metal and plastic shards to shoot out towards passengers.
The faulty devices have been linked to at least four deaths in the U.S. so far and one death in Malaysia. All of the incidents took place in Honda vehicles.
Autoliv said in December that it would make replacement air-bag inflators for Honda. The automaker owns approximately 1.2 percent of Takata and both are based out of Tokyo, according to Bloomberg.
Company safety revenues in 2014 reached around $490 million, or the $0.5 billion target a year ahead of a plan set four years ago.
The company is now preparing for the next level of active safety and automated driving features in addition to its current focus of selling vision, night vision and radar products and systems.
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