Proton lays foundation for expansion in Southeast Asia
Malaysian carmaker Proton Holdings, partly owned by Chinese automaker Zhejiang Geely Holding Group, obtained a loan of 1.88 billion Malaysian ringgit ($445 million) from a state-owned Chinese bank.
The lending agreement was signed between Proton and China Construction Bank last week in Beijing and will be used by Proton to finance expansion operations as it strives to become the largest car brand in Malaysia and the third-largest in Southeast Asia by 2027, according with the company stated.
Last week, Proton also signed a technology licensing agreement in Beijing with Alhaj Automotive, Proton’s distributor in Pakistan, allowing the latter to assemble Proton-badged vehicles with complete knockdown kits shipped from Malaysia.
The $30 million assembly plant, to be built by Alhaj Automotive in the Pakistani city of Karachi, is expected to start production before the end of 2020.