Greenville, S.C., ~January 4, 2005 ~  /PRNewswire/  --Safety Components International, Inc., an international producer of airbag fabrics and airbag cushions for the automotive industry, is pleased to announce its business expansion into China. 

 

Safety Components International, Inc., through its subsidiary, ASCI Holdings Asia Pacific (DE), LLC, collectively referred to as “Safety,” has entered into a partnership with Huamao (Xiamen) Technical Textile Co. (“Huamao”).  Located in Xiamen, China, Huamao is one of  China’s leading textile companies and provides full service design, production and testing of technical fabrics.  Huamao produces more than 90 million yards of fabric annually.  Huamao has completed an extensive investment to support, upgrade and improve preparation, weaving, finishing, coating, laminating and full testing of coated and uncoated airbag fabrics. 

 

More specifically, Safety has entered into a technology transfer and joint venture agreement with Huamao whereby Safety will provide technical assistance to Huamao in the development of airbag fabrics.  Furthermore, Safety and Huamao are establishing a joint venture to be known as Automotive Safety Components International (Changshu) Co., Ltd. (“ASCI Changshu”), which will cut, sew and fold airbag cushions.  Huamao will supply airbag fabrics to ASCI China from their existing Xiamen, China operation.  As majority owner, Safety will manage ASCI Changshu’s new facility located in Changshu, about 80 kilometers northwest of Shanghai.  The facility is in the final stages of construction and will be completed in early 2005. 

 

Bart Hanaway, President of Safety’s Asia Pacific Automotive Group, stated, “Safety considers itself fortunate to be able to join forces with a capable and well-respected organization such as Huamao.  The partnership capitalizes on Safety’s global experience and Huamao’s highly respected technical fabric producing capabilities in China, and will enable the joint venture to produce and supply both coated and uncoated airbags to meet industry cost and quality requirements in China almost immediately.”

Hanaway adds, “This rapidly establishes an effective, efficient supply chain for the domestic China market.  We are developing a world-class operation with the systems and controls necessary to deliver airbag products that meet global quality specifications.  We will draw upon operational and technical resources provided by Safety’s organizations in the US, Mexico and western/eastern Europe.  We plan to supply airbag cushion products early in the second half of 2005 and are confident that the business will be positioned to be a major airbag cushion supplier in the Asia-Pacific region.”

 

John Corey, Safety’s Chief Executive Officer, notes, “This facility is intended to partner with and support our existing customer base and fully participate in the growing Chinese domestic market.  This now gives Safety manufacturing capability on four continents and demonstrates our willingness to support our customers around the world.”

Safety Components International, Inc. (OTC Bulletin Board; SAFY) is a leading, low-cost international supplier of automotive airbag fabric and cushions.  The Company is also a leading manufacturer of value-added synthetic fabrics used in a variety of niche industrial and commercial applications.  The company is headquartered in Greenville, South Carolina. 

 

            This press release contains forward-looking statements.  The Company wishes to caution the reader of this press release that such forward looking statements are subject to various known and unknown risks and uncertainties, including the possibility that the Company’s stated goals will not be fulfilled in whole or in part.  Additional information on factors that could potentially affect the Company’s financial results may be found in the Company’s filings with the Securities and Exchange Commission.