Proton has secured banking facilities worth RM1.88 billion from China Construction Bank (CCB). The company said on Friday that the loans are earmarked to finance Proton’s future business expansion plans as it strives to achieve its goal to be the number one automotive brand in Malaysia and number three in the ASEAN trade bloc by 2027.
CCB is among the top-five largest banks in the world by market capitalization.
At the same time, Proton also announced that it had entered a Licensing and Technical Assistance Agreement (LTAA) with Pakistan’s Alhaj Automobile to build a manufacturing plant in Karachi to assemble Proton vehicles there.
The new plant will be built in Karachi on a greenfield (previously unused) site with an initial investment of USD30 million. It will also create 2,000 direct employment opportunities in its first three years of operations and an estimated 20,000 indirect jobs for supporting industries in the coming years.
“The exchange of documents between Proton and its partners, Alhaj and CCB, is a significant step in Proton’s journey to achieve its long term goals. Expansion to foreign markets is critical for sales growth while obtaining financing allows the Company to invest in the many projects required to turn PROTON into a truly global automotive brand,” said Dato’ Seri Syed Faisal Albar, Chairman of Proton.