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5 October2009
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Malaysia’s Proton seeks partners for contract assembly

Proton Holdings Bhd, manufacturer of Malaysia’s national car Proton, is in talks with several parties for the Malaysian automaker to do contract assembly work, state news agency Bernama quoted Group Managing Director Syed Zainal as saying.

By doing contract assembly, he said, the national carmaker would fully utilise the capacity at its Tanjung Malim plant in Perak.

"Whatever capacity we have, if we cannot utilise it for Proton, obviously we should explore contract assembly," he said.

Proton Chairman Mohd Nadzmi Salleh said in the short term, contract assembly was a practical solution for the company.

According to MIDF Research, Proton's Tanjung Malim plant has the capacity to produce one million cars annually, but today it was only rolling out 150,000 units off its assembly line each year.

It was reported recently that the Volkswagen group was keen to make Malaysia its sourcing hub for auto parts and completely-knocked down assembly in collaboration with a local automaker.


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