STOCKHOLM, Nov 22 (Reuters) - Swedish car safety equipment maker Autoliv said on Friday it would close two plants in the United States to save $5 million in 2003 and $20 million annually starting in 2004.
The company, suffering from the slowdown in the car industry as a result of a weaker global economy, said the savings programme will cost a total of $15 million.
"Most of the cost will be offset by a combination of unrelated one-time revenues and release of previously established accruals. The net effect on the fourth quarter earnings will therefore be less than $5 million," Autoliv said.
The two plants to be phased out over the next 12 months are a seat belt factory in Indianapolis, Indiana, which employs 350 people, and an airbag inflator factory in Denver, Colorado, employing 500.