Proton signed two deals in Beijing; one for its Pakistan factory & other with CCB

KUALA LUMPUR: Proton has signed deals with two different parties in Beijing to bolster its expansion plans, both in the home and overseas. The first document exchange was done with Alhaj Automobile, which comprised of licensing and technical assistance agreement (LTAA) for building a company's plant in Pakistan. Whereas, the other deal was with China Construction Bank (CCB) for availing a loan of RM 1.88 billion.

The plan to set up a factory in Karachi, Pakistan was announced by Proton in March this year, while the agreement was inked back in August 2018. The upcoming CKD production plant will be built on a greenfield site and will start with an investment of US$30 million (RM 124 million). The process of setting up the plant will begin in 2020 and in the meantime, Alhaj will be trading CBU imports from Malaysia.

On the other hand, the second agreement, which was done with CCB, is for availing a loan of RM 1.88 billion to burgeon the company’s business expansion plans. Proton is also striving to achieve the number one spot in the home (which is currently reigned by Perodua) and bagging the third spot in the entire ASEAN region, both by 2027.

Company’s chairman Datuk Seri Syed Faisal Albar said, “The exchange of documents between Proton and its partners, Alhaj and CCB, is a significant step in Proton’s journey to achieve its long term goals. Expansion to foreign markets is critical for sales growth while obtaining financing allows the company to invest in the many projects required to turn Proton into a truly global automotive brand”

Malaysian Prime Minister Tun Dr Mahathir Mohamad, who was in Beijing also witnessed the ceremony and met with stakeholders from Proton along with Geely chairman Li Shufu.

Alongside the exchange of documents, the company is also encouraging the local vendors to supply high-tech components to meet the requirements of its future range of offerings. To support this, the company has done matchmaking of Malaysian vendors with those in China (existing Geely vendors) to set up a new joint-venture company and sign technical agreements.