Swedish car safety equipment maker Autoliv will gradually shut down its manufacturing operations in Turkey and move production to other plants in Europe, the Middle East and Africa, citing manufacturing capacity that exceeds expected demand.

The company said Friday that its Turkey operations, which produce steering wheels, airbags and seatbelts, would be fully closed in the first half of 2028.

Autoliv said the decision is expected to affect about 2,200 employees and cost the company about $142 million before taxes.

The cost includes about $129 million in cash expenses, mainly for severance payments, employee retention, shutdown costs and contract-related expenses, along with $13 million in accounting losses from factory assets and inventory that lose value because of the closure.

The company did not cite a Turkey-specific reason for the decision.

Autoliv said the move was part of a review of its operations in Europe, the Middle East and Africa as the global auto industry goes through “structural shifts.”

Reuters reported that Autoliv’s Turkish manufacturing operations are in Kocaeli, an industrial province in northwestern Turkey near İstanbul, and account for about 4 percent of the company’s global workforce.

The shutdown comes as auto suppliers face pressure from slower growth, rising costs and production cuts by carmakers, Reuters reported.

Autoliv, based in Sweden, is one of the world’s largest suppliers of automotive safety systems, including airbags, seatbelts and steering wheels.