Japanese automotive parts firm Nippon Kayaku has announced plans to construct a factory in the Czech Republic to make gas generators for its airbag inflators. The plant is to be completed in February 2007.

The capacity of around 1,000 tons a year, entirely for captive consumption, is similar to that at the companys Himeji factory in Japan, which employs 240 people. The new factory will supply Japan for now, but the company intends to expand in regions it exports to as the manufacture of inflators diversifies and grows.