PRESS RELEASE

15 Jan 2019
PROTON VENDORS COLLABORATE WITH OVERSEAS COUNTERPARTS

Kuala Lumpur, 15 January 2019 – Following the signing of collaboration agreements between PROTON’s vendors and their overseas counterparts on 10 October last year, a second group of vendors exchanged collaboration agreements during a ceremony held at the Matrade Exhibition and Convention Centre (MECC) today.

The event was witnessed by YB Dr Ong Kian Ming, the deputy minister of International Trade and Industry, who was hosted by 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.

Collaborations bring investments to Malaysia

As with the first group of vendors, the collaboration agreements range in scope from technical agreements and joint ventures to 100% foreign direct investments with overseas vendors investing directly in the Malaysian economy. It is estimated the new collaborations will bring an initial investment of RM47 million to country with the amount set to multiply over the years in tandem with increases in PROTON’s manufacturing volume.

Aside from the investments in facilities and technology, the collaborations are expected to create approximately 450 new jobs in the automotive industry that range from assembly to design engineering that requires highly skilled workers. This will help to establish a supplier base capable of meeting the technology and quality standards required for the next generation of Proton cars to be developed with Geely.

The vendors will supply parts to PROTON’s manufacturing facility in Tanjung Malim, which is currently undergoing plant expansion initiatives at a cost of RM1.2 billion. The new facility is expected to be completed soon and by the second half of 2019 the first completely-knocked-down (CKD) version of the Proton X70 will roll off the production line.

“PROTON’s vendor development programme is gathering pace and the Company has worked hard on its matchmaking activities to find the best alliances that will benefit all vendors, the local economy and PROTON as well. We are convinced that by building partnerships with overseas counterparts, it will be possible for local vendors to reach a world standard for technology advancement and quality in a short time frame,” said Dr Li Chunrong, Chief Executive officer of PROTON.

“If our vendors achieve their targets, it will enable them to compete internationally thus leading to the development of a vendor community that will allow the Malaysian automotive industry to compete on a global scale. The participation of these vendors is also vital to PROTON’s long-term goals, which ultimately is to lead the industry to develop world class competencies,” he added.

Deliveries of Proton X70 exceed 2,000 units five weeks after launch

Following on from its official launch on 12 December 2018, bookings for the Proton X70 has exceeded 15,000 units. To date, over 2,000 units have been delivered in the five weeks following the official launch of the SUV and PROTON is working to accelerate the delivery rate in the coming months.

“PROTON is very thankful for the support Malaysians have shown for the Proton X70 and we are repaying their faith by trying to deliver units as quickly as we can. This is the start to 2019 the Company was looking for and we hope to keep the momentum going for our other activities throughout the year,” said Dato’ Radzaif Mohamed, Deputy Chief Executive Officer of PROTON.     

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