PRESS RELEASE

10 Oct 2018
PROTON VENDORS SIGN AGREEMENT WITH OVERSEAS COUNTERPARTS

Tanjung Malim, 10 October 2018 – PROTON took another step for the local production of the X70 SUV when a number of its vendors signed collaboration agreements with their overseas counterparts at a ceremony here today. The first batch of agreements to be signed, ranging in scope from joint ventures to technical assistance, will bring an initial investment of RM170 million to Malaysia. The amount is expected to multiply over the years in tandem with increases in PROTON’s manufacturing volume.

The event at Proton Tanjung Malim Sdn Bhd, PROTON’s manufacturing plant at Tanjung Malim, was attended by YAB Tuan Ahmad Faizal Bin Dato’ Azumu, the Menteri Besar of Perak, Chang Lih Kang, Member of Parliament for Tanjung Malim and Dato’ Seri Ir Hj Mohammad Nizar Jamaluddin, Exco Investment and Corridor Development. They were hosted by Dato’ Seri Syed Faisal Albar, Chairman of PROTON, Dr Li Chunrong, Chief Executive Officer of PROTON, Dato’ Radzaif Mohamed, Deputy Chief Executive Officer of PROTON and other senior management members of PROTON and DRB-HICOM.

Investing for the future

The signing of agreements between Malaysian and overseas vendors is the first step in establishing a supplier base capable of meeting the technology and quality standards required to manufacture the next generation of Proton cars to be jointly developed with Geely. It is also a commitment by PROTON to grow its sales locally and via export markets as Tanjung Malim is transformed into a research and development as well as production hub for right hand drive models within the Geely Group.

To achieve this, PROTON is investing RM1.2 billion in plant expansion initiatives to cater to the manufacture of all new Proton models in Tanjung Malim. This is in line with the strategic partnership agreement signed between PROTON and Geely in 2017 with the intention to rejuvenate PROTON and its model offerings. The long-term goal is to re-establish the brand as a market leader domestically while growing its presence internationally, particularly in ASEAN right-hand-drive markets.

“PROTON would like to urge its vendors to grab this opportunity to build partnerships with their overseas counterparts in order to reach a world standard for technology advancement and quality. This will enable them to compete internationally and lead to the development of a Malaysian automotive industry vendor community that is able to compete on a global scale,” said Dato’ Seri Syed Faisal Albar, Chairman of PROTON.

“The participation of Malaysian vendors is a key component to achieving the long-term goals of the Company. We want Proton products that are built right here in Tanjung Malim, using parts made in Malaysia for the domestic market as well as for our export models and be able to stand comparison with competitors from around the world. This is a commitment PROTON, as Malaysia’s iconic automotive brand, is making to ensure the Malaysian automotive industry continues to develop world class competencies,” he added.

Proton X70 assembly to begin in 2019

The Proton X70 will be the first model jointly developed by PROTON and Geely to be manufactured at the Tanjung Malim plant. Prior to its launch, it will be displayed at a series of customer previews designed to introduce Malaysians to PROTON’s first SUV. Customer response has been very encouraging with many placing bookings with a deposit of RM1,000 since the order book was opened on 8 September.

“The Proton X70 will be the first product launched in our plan to revitalise PROTON. It will feature new technology that will be new to Proton models as well as a level of luxury and quality that, together with our new 3S and 4S outlets, will elevate the brand to new heights. We are confident many Malaysians will rediscover their love for Proton models after they have experienced this new SUV,” said Dr. Li Chunrong, Chief Executive Officer of PROTON.

 

 

 

 

 

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