FOLLOWING the signing of collaboration agreements between Proton’s vendors and their overseas counterparts on Oct 10 last year, a second group of vendors exchanged collaboration agreements during a ceremony held at the Matrade Exhibition and Convention Centre (MECC) on Tuesday.
The event was witnessed by deputy minister of international trade and industry Ong Kian Ming.
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 into Malaysia 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,” said Proton CEO Li Chunrong.
“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.
“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.”
