ID :
37274
Thu, 12/25/2008 - 09:50
Auther :

PROTON GEN.2 TO BE ASSEMBLED IN IRAN

From Muin Abdul Majid

TEHRAN, Dec 24 (Bernama) -- Proton Holdings Bhd's Gen.2 model will be
assembled in Iran from April 2009 in a deal with a local partner.

Proton and Zagross Khodro inked an agreement here Tuesday for the supply of
automotive parts that allows the latter to assemble the Gen.2 through a
completely knocked-down (CKD) arrangement at its assembly plant in Borujerd
city, southwest of Iran.

The signing was witnessed by Iranian President Mahmoud Ahmadinejad and
Malaysia's Prime Minister Abdullah Ahmad Badawi who is on a four-day
official visit to Iran.
Currently, Proton is exporting completely built-up (CBU) Gen.2 to this
country of over 70 million people.

This is the third of a series of agreements aimed at enabling Zagross,
Proton's sole distributor in Iran, to assemble the Gen.2.

Signing the dotted line for Proton was its managing director Syed
Zainal Abidin Syed Mohamed Tahir while Zagross was represented by its managing
director, Siroos Gholami.

Present were Proton chairman Mohammed Azlan Hashim and Zagross
chairman Dariush Gholami.

The previous two agreements were on licensing and technical assistance and
purchase of equipment.

"This agreement signifies Proton's continued commitment to the vast Iranian
market and is part of its overall export market strategy," said Mohammed
Azlan.

He also disclosed that Proton, Malaysia's first car manufacturer, would
open an office in Iran in March 2009.

With the CKD operation in Iran, Proton will be able to price its cars more
competitively in the local market and more importantly improve on its
after-sales service in the country, the company said in a statement.

The collaboration between Proton and Zagross began in 2001 when the
latter
became the sole assembler and distributor of the Proton Wira in this Islamic
republic.

Zagross had previously imported CBU units of Proton cars into Iran, a
market viewed as a potential for Proton in view of its large population.

Established in 1996, Zagross is the largest private automotive company in
Iran with the capability of selling 50,000 cars a year.

-- BERNAMA

X