Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Daicel to build U.S. air bag inflator plant earlier than planned

Published 02/19/2015, 08:58 PM
Updated 02/19/2015, 08:58 PM
© Reuters. A logo of Daicel Corp, which makes air bag inflators, is seen at its Tokyo headquarters

TOKYO (Reuters) - Daicel Corp said it would build a second U.S. factory for air bag inflators in early 2016, bringing forward original plans partly to meet automakers' demand for alternatives to potentially deadly inflators made by Takata Corp.

The Osaka-based company had previously said it would look into constructing a second U.S. factory some time after its current mid-term business plan ends in March 2017, but decided to reschedule to the end of the year through March 2016, a spokesman said on Friday.

Daicel's shares rose as much as 4 percent in Tokyo.

Automakers such as Honda Motor Co have said they are turning to Daicel, Autoliv Inc and others to help supply inflators as Takata struggles to produce them fast enough for the millions of cars being recalled worldwide.

© Reuters. A logo of Daicel Corp, which makes air bag inflators, is seen at its Tokyo headquarters

Daicel had originally planned to supply replacement parts from Japan but will also utilize the planned U.S. factory, to be located in Arizona, the spokesman said. The bulk of the cars recalled for Takata's inflators are in the United States.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.