Proton today held a ground-breaking ceremony to mark the commencement of construction work on a new stamping facility at its Tanjung Malim factory. The factory, built in the late 1990s, already has stamping facilities and this new one will complement them. It is scheduled to be completed by the third quarter of 2022.
The new facility will house a new Superlarge stamping machine which allows making larger metal panels for vehicles and other parts. The investment of RM200 million in the facility is part of Proton’s plan to increase levels of localisation, both for current and future models.
This is on top of the RM1.2 billion already spent on upgrading the factory with the aim of making it a world-class vehicle manufacturing plant that will be able to produce more model lines. It is also in line with Proton’s technology strategy as the new facility will have state-of-the-art tools as well as systems.
“While we are happy with our progress so far, Proton must continue to look to the future”, said Dr.Li Chunrong, Chief Executive Officer of Proton. “This new addition is part of our strategy to ensure that we can grow continuously as well as increase our model footprint when we have to. This means having the ability to build more variants but more importantly, to be able to build them to the highest standards as well as to incorporate new technology.”
Proton has seen a huge turnaround in fortunes over the last three years since Geely became DRB-HICOM’s partner in the company. Besides introducing brand new models, it has also had increased sales volumes and gained market share. At the same time, quality has been improved in products and services and the entire dealer network has been revamped with most outlets upgrading to 3S status.
“We are very clear about direction and growth for Proton. While Malaysia will always be our primary market, we must be able to compete beyond our shores. This facility is one small part of that journey. It is especially important for us because it means we can do far more localisation going forward. This will have a spill-over effect which will see us engaging with more vendors and further growing the local automotive ecosystem,” said Dr. Li.
Strong start for Proton with Q1 market share highest since March 2012