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Malaysian carmaker Proton announces joint venture to build new assembly plant in Pakistan
- A groundbreaking ceremony for the factory is set to take place on Saturday, as Prime Minister Mahathir Mohamad wraps up a three-day visit to the country
- The carmaker, which was struggling before Chinese company Geely bought a 49.9 per cent stake in 2017, has shown recent signs of recovery
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Proton, Malaysia’s national carmaker, is set to build an assembly plant near Karachi in Pakistan with local partner Alhaj Automotive, in a move that economists believe will bring positives for both nations.
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The carmaker, which was struggling before Chinese company Geely bought a 49.9 per cent stake in 2017, recently launched a premium SUV believed to be signalling its recovery. Now, its regional ambitions are coming to fruition sooner than expected, even as Geely’s sales within China stutter amid the US-China trade war and an economic slowdown.
In a statement, Zhejiang Geely Holding Group said the move was “part of Geely’s commitment to help restore Proton to its position as a best-selling brand in Malaysia and also a leading Asean brand”.
For Pakistan, which is grappling with both a financial crisis and inflamed tensions with its neighbour India, the deal will mean job creation and economic benefits, fulfilling a promise made by Malaysian Prime Minister Mahathir Mohamad during the first official visit by his Pakistani counterpart, Imran Khan, to the country late last year.
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The groundbreaking ceremony for the new factory is set to take place on Saturday as Mahathir wraps up a three-day visit to Pakistan, during which time he will also receive the country’s highest civilian award.
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