KIYOSU, Japan—Toyoda Gosei Co. Ltd. and Nippon Kayaku Co. Ltd. agreed to a capital alliance for greater cooperation in their airbag business.
Toyoda has purchased inflators, a key component in airbags, and other products from Nippon for decades, according to a Toyoda release. The demand for airbags is growing rapidly as safety regulations become stricter around the world, and the alliance will help the companies strengthen stable supply and quality assurance systems for airbags.
The two companies also will work together in the field of new materials as well as safety, collaborating in the development of new products, Toyoda said.
Each company will hold about $9.1 million worth of the other company's common shares.