MALAYSIAN carmaker Proton has taken a significant step toward international expansion with the inauguration of a new completely knocked-down (CKD) plant to assemble the Proton Saga in Cairo, Egypt. The ceremony was officiated by YAB Dato’ Seri Anwar Bin Ibrahim, Malaysia’s Prime Minister, during his official visit to the country.

Prominent figures present at the event included H.E. Lieutenant General Kamel Al-Wazir, Egypt’s Deputy Prime Minister, YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Malaysia’s Minister of Investment, Trade, and Industry, and YB Dato’ Seri Utama Haji Mohamad bin Haji Hasan, Malaysia’s Minister of Foreign Affairs. Egyptian and Malaysian officials, including H.E. Mr Ragai Tawfik Said Nasr, Ambassador of Egypt to Malaysia, also participated alongside business leaders from both nations.

Strategic Investment in Al Oula Industrial Park

The new CKD facility is located in the Al Oula Industrial Park, Giza, and is operated by Ezz Elarab Elsewedy Automotive Factories (ESAF)—a joint venture between Ezz Elarab and Elsewedy Capital Holding. The plant represents an investment of USD35 million and has a production capacity of 20,000 units per shift. Once fully operational, it is expected to employ up to 400 people.

Proton was represented at the inauguration by Tan Sri Syed Faisal Albar, Chairman, and Roslan Abdullah, Deputy CEO. From ESAF, Hisham Ezz Elarab, Chairman, and Ahmed Elsewedy, Board Member, attended the event.

A Milestone in Bilateral Cooperation

During his speech, Prime Minister Anwar Ibrahim highlighted Proton as a source of national pride and emphasised the importance of partnerships like ESAF in fostering industrial advancement. He urged Proton to leverage local facilities to strengthen its operations in the region.

The factory inauguration comes shortly after the first shipment of CKD packs was sent to Egypt on 9 September 2024. The production of left-hand drive Proton Saga models is set to begin in December 2024, with an initial production target of 1,400 units for 2024. This is projected to increase to 5,000 units in 2025, with a total of 16,000 CKD packs expected to be exported by the end of 2026.

Expanding Beyond Egypt

The vehicles assembled in Egypt will not only cater to the domestic market but also be exported to Northern and Sub-Saharan Africa and Middle Eastern markets. These efforts are part of Proton’s strategy to strengthen its presence in emerging markets where car ownership is on the rise.

The total value of exports from this initiative is estimated at RM570 million, excluding an additional RM20 million projected from parts exports.

Unlocking Global Potential

Tan Sri Syed Faisal Albar remarked that Proton, as Malaysia’s leading vehicle exporter, currently sees exports accounting for 3% of total sales volume. However, the company aims to unlock untapped potential in international markets.

“Egypt is central to our plans for the region. Moving forward, we will focus on partnerships like ESAF to maximize the sales potential for Proton vehicles in regions where car ownership is still growing,” he said.

Future Growth Prospects

The establishment of the Cairo CKD facility marks a pivotal moment in Proton’s international expansion. With plans to explore broader markets and collaborate with strategic partners, the company is poised to enhance Malaysia’s automotive footprint on the global stage.

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