PROTON CKD PLANT IN EGYPT INAUGURATED BY PRIME MINISTER OF MALAYSIA
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Assembly operations for LHD Proton Saga projected to begin in December
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3-year projection shows 16,000 CKD packs worth RM570 million to be sent to Egypt
Subang Jaya, 13 November 2024 – Export operations for Malaysian carmaker PROTON have taken the next step towards expanding internationally following an inauguration ceremony for the new CKD plant to assemble the Proton Saga in Cairo, Egypt, by YAB Dato’ Seri Anwar Bin Ibrahim, Prime Minister of Malaysia. Joining him at the event were H.E. Lieutenant General Kamel Al-Wazir, Deputy Prime Minister of Egypt, YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Investment, Trade and Industry, YB Dato' Seri Utama Haji Mohamad bin Haji Hasan, Minister of Foreign Affairs, H.E. Mr Ragai Tawfik Said Nasr, Ambassador of Egypt to Malaysia, ministers from both Malaysia and Egypt as well as members of the business community travelling with the Prime Minister during his official visit to the country.
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 USD35 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. Representing ESAF at the inauguration event were Hisham Ezz Elarab, Chairman of ESAF and Ahmed Elsewedy, Board Member of ESAF while PROTON was represented by Tan Sri Syed Faisal Albar, Chairman of PROTON and Roslan Abdullah, Deputy Chief Executive Officer, PROTON.
“Proton is not just an automotive company; it is a source of pride and part of Malaysia's identity," said YAB Dato’ Seri Anwar Bin Ibrahim in his speech during the inauguration ceremony. He also emphasised that 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 9 September this year. The first completed units of the LHD 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.
These 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 PROTON 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.
“PROTON has been Malaysia’s leading vehicle exporter for decades with our current export volume accounting for approximately 3% of our 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,” said Tan Sri Syed Faisal Albar.