BEIJING (April 26): Prime Minister Tun Dr Mahathir Mohamad today witnessed the exchange of documents to facilitate the setting up of Proton’s manufacturing assembly plant in Pakistan.
The ceremony comes just slightly over a month after Dr Mahathir and his Pakistani counterpart Imran Khan witnessed the symbolic groundbreaking ceremony for the plant in Karachi.
The documents exchanged in the Chinese capital today between Proton and Al-Haj Automotive, relate to the licensing and technical agreement for the project.
Set up in 1983, Proton, the first national car, is a brainchild of Dr Mahathir during his previous tenure as prime minister.
In a brief speech here today, DRB-Hicom Bhd group chief executive officer Datuk Seri Syed Faisal Albar Syed Ali Rethza Albar noted this exchange of documents as being symbolic of China's Belt and Road initiative.
Last month, it was reported that Al-Haj Automotive, the official distributor for Proton vehicles in Pakistan, will make an initial investment of US$30 million to build the first completely knocked down (CKD) plant for Proton vehicles in that country.
To be set up on a greenfield site in Karachi, the plant is expected to start operations by the end of next year and create 2,000 direct employment opportunities in its first three years of operations, Proton had said.
To establish Proton in Pakistan, an agreement with ALHAJ Automotive was inked on Aug 29 last year with the group being appointed as the sole distributor for Proton vehicles in the country.
Notably, it was in Hangzhou last year where Chinese automaker Zhejiang Geely Holding Group Co Ltd (Geely), which controls a 49.9% equity stake in Proton, signed a heads of agreement with Proton to form a joint venture for Proton to assemble and market cars in China.
Proton then revealed its plan to set up manufacturing facilities in China, and the JV was formed to also help Proton develop a network of dealers to market its cars in China.
Also present at the event here was Geely's founder Li Shufu and Proton chief executive officer Li Chunrong.