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Autoliv Expanding China Plant

Autoliv will build out its 3-year-old plant in southern China where it assembles air bags and seatbelts, the automotive safety system company said.

GUANGZHOU, China (AP) -- Autoliv will build out its 3-year-old plant in southern China where it assembles air bags and seatbelts, the automotive safety system company said Wednesday.

The expansion at the plant in Guangzhou will increase floor space by nearly 70 percent. Sweden's Autoliv said the new building is expected to cost slightly less than $4 million.

The existing plant's work force of 800 employees will by increased by 150 when the expansion is completed.

The plant produces air bags and seatbelts for the Chinese market and for vehicles exported to Japan. The largest customers are Honda, Nissan, Mazda and Toyota.

Autoliv recently announced three other moves to expand its manufacturing capacity in China. The company has 10 facilities in China that employ 5,500 people.

U.S.-traded shares of Autoliv Inc. rose $1.08, or 1.6 percent, to $70.08 in morning trading.