KUALA LUMPUR: Proton Holdings Bhd has advanced its international expansion efforts with the inauguration of a new completely knocked down (CKD) plant for the Proton Saga in Cairo, Egypt.

The ceremony was officiated by Prime Minister Datuk Seri Anwar Ibrahim.

"Proton is not just an automotive company; it is a source of pride and part of Malaysia's identity," Anwar said in his speech.

He said such joint ventures are crucial for advancing local industries while urging Proton to fully utilise local facilities as soon as possible.

The inauguration of the CKD factory follows on from the first shipment of CKD packs being sent to Egypt on Sept 9 this year.

The first completed units of the left-hand drive Proton Saga are expected to roll off the production line in December this year with volume for 2024 projected to be 1,400 units.

"This will increase in 2025 to a targeted 5,000 units with projections for the first three years showing a total of 16,000 CKD packs being exported to the country by the end of 2026," Proton said.

Proton said the vehicles will not only be sold in the Egyptian domestic market but will also be exported to countries in northern and sub-Saharan Africa as the company looks to penetrate those territories as well as Middle East markets.

"In total, the value of these exports is expected to bring in RM570 million to Proton excluding revenue earned from parts exports that is projected to earn a further RM20 million," it added.

Located at the Al Oula Industrial Park in Giza, the new facility is owned by Ezz Elarab Elsewedy Automotive Factories (ESAF), a joint venture between Ezz Elarab and Elsewedy Capital Holding.

The plant is valued at US$35 million with a production capacity of 20,000 units on a single shift.

"When running at its full operational capacity, it is expected to provide employment for up to 400 people," Proton said.

Proton chairman Tan Sri Syed Faisal Albar said the company has been Malaysia's leading vehicle exporter for decades with current export volume accounting for about three per cent of  total sales volume.

"While these efforts have borne fruit, our own history shows there is a lot of untapped potential for the company in markets outside of Malaysia.

"Egypt is central to our plans for the region and going forwards, we will be keen to engage in more collaborations with partners such as ESAF to unlock the sales potential for our cars in countries where car ownership numbers are still increasing," he added.

https://www.nst.com.my/business/corporate/2024/11/1133953/proton-unveils-assembly-plant-egypt