Friday, October 21, 2011

Proton, China's Hawtai plan tie-up for product devt

KUALA LUMPUR: PROTON HOLDINGS BHD [] plans to collaborate with China's Hawtai Motor Group to set up a joint venture (JV) company there as part of Proton's strategy to make China as one of its major manufacturing hub, especially for left-hand-drive vehicles.

Proton said on Friday, Oct 21 said its unit, Proton Marketing Sdn Bhd, had signed the memorandum of understanding to invest in product development and vendor sourcing. It would also look into joint designing and development cost sharing.

'The JV will also be responsible for vendor sourcing and component development work with local Chinese vendors. This will allow Proton to tap into the competitive cost base vendors in China and explore the potential of cross-supplying components from local Malaysian vendors to China and vice-versa,' it said.

The MoU was signed between Proton group managing director, Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir and Hawtai executive president Hou Haijing. The signing was witnessed by Prime Minister Datuk Seri Najib Tun Razak, China senior government officials in Nanning.

Proton said the collaboration would be for 10 years once the definitive agreement was signed.

'The MoU and potential of a long term relationship with Hawtai is in line with efforts to establish China as one of Proton's major manufacturing hubs especially for left-hand-drive vehicles,' it said.


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