STOCKHOLM - Sweden's Autoliv said on Tuesday it will invest around $5 million dollars to double capacity at its seat belt manufacturing plant in Romania.
The world's biggest maker of seat belts and air bags is among a host of Swedish companies that are moving production to cheaper manufacturing bases in eastern Europe and Asia as they look to boost their bottom lines.
"This investment is an important step in Autoliv's strategy to move production to low-labor-cost countries," the firm said in a statement.
At the end of the second quarter, Autoliv said around 34 percent of its 38,000 employees were in low-cost countries, up from less than 10 percent five years ago.
Autoliv posted record second-quarter results at the end of July, but warned that rising raw material prices would crimp recent gains in profitability.
In May, it said it would also switch more procurement to low-cost countries in order to cut expenditure. Around half of Autoliv's revenue is eaten up by procurement costs.