PROTON ALLOCATES RM1.2B FOR PLANT EXPANSION
Move in line with strategic partnership agreement with China’s Geely
NATIONAL carmaker Proton Holdings Bhd has allocated RM1.2 billion for the expansion of its plant here, making it a production hub for the group’s future car models.
Its chairman Datuk Seri Syed Faisal Albar said the expansion plan is in line with the strategic partnership agreement sealed by Proton and Chinese multinational automotive manufacturing company Geely last year.
He said Proton is committed to increasing sales and export of cars and the Tanjung Malim factory will also be the global production hub for Geely’s righthand drive models.
“Our 10-year business plan is to bring back the glory of Proton by rebuilding the brand in the local market and extending it internationally, especially in Asean,” Syed Faisal said at the signing of cooperation agreements between Proton vendors and their overseas partners, here, yesterday.
Also present were Proton chief executive officer (CEO) Dr Li Chunrong, Proton deputy CEO Datuk Radzaif Mohamed and Perak State Investment and Development Exco Datuk Seri Mohammad Nizar Jamaluddin.
The agreements, sealed yesterday by eight Malaysian vendors and their Chinese counterparts, ranged in scope from joint ventures to technical assistance for the local production of the Proton X70 sport utility vehicle.
The partnerships are between Delloyd Industries Malaysia and Hubei Tri-ring Auto-electric Appliance, Hicom Teck See Manufacturing Malaysia and Jiangsu Xinquan Automotive Trim, MTV Digital Technology and Tianjin Bodun Electronics, Multi-Code Electronics Industries Malaysia and SH SIIC Transportation Electric, and Delloyd Alpha and Ningbo Xinpin Auto Parts.
Also signing deals were Delloyd Electronics and Avic Guiyang Wanjiang Aviation Electromechanical, Proreka and Ningbo Fushi Automotive Components, as well as Xenso Electronics and Shenzhen Jiuzhou Zhuoneng Electric.
Ningbo Tuopu Vibro-acoustics Technology, a Chinese car-parts developer and manufacturer, will also be setting up shop here to produce components for Proton.
Syed Faisal said the joint venture agreements would facilitate the production of the X70 and other future models.
The joint ventures are expected to help bring an initial investment of RM170 million to Malaysia — an amount that could multiply as Proton’s manufacturing volume expands in the years ahead — and should result in around 450 new jobs.