Proton Announces The Start Of CKD Operations For Saga In Egypt

Piston.my

Proton Announces The Start Of CKD Operations For Saga In Egypt

Proton has expanded its international presence by announcing the launch of CKD (Completely Knocked Down) operations in Egypt. This milestone was marked at Proton’s Centre of Excellence headquarters with a ceremony to flag off 120 units of LHD Proton Saga CKD packs for export to Egypt.

The event saw notable attendees such as H.E. Ragai Tawfik Said Nasr, the Egyptian Ambassador to Malaysia, and Datuk Hanafi Sakri, Deputy Secretary General of the Ministry of Investment, Trade, and Industry, alongside Proton’s senior leadership, including Chairman Tan Sri Syed Faisal Albar and Deputy CEO Roslan Abdullah.

Roslan Abdullah emphasised that export sales are crucial to Proton’s long-term growth strategy, especially as the Malaysian market becomes saturated. With CKD operations now established in Egypt, Proton’s global CKD and SKD footprint includes five plants outside Malaysia. This move is set to increase the company’s international market share, particularly in Egypt, where local assembly is expected to commence in December 2024. The plant is managed by Ezz Elarab Elsewedy Automotive Factories (ESAF), Proton’s long-term partner in Egypt since 2004.

*Datuk Hanafi Sakri, Deputy Secretary General of the Ministry of Investment, Trade, and Industry*

Looking ahead, Proton forecasts the production of 5,000 units of the Proton Saga for the Egyptian market in 2025, potentially establishing Egypt as a regional hub for vehicle exports across North Africa. Proton’s International Sales Director, Steven Xu, sees local assembly as a strategic opportunity to reduce dependence on CBU (Completely Built-Up) imports, aligning with Egypt’s economic policies.

The CKD initiative is projected to generate significant revenue for Proton, with RM570 million expected from CKD exports to Egypt by 2026, plus an additional RM20 million from parts exports. The Egyptian economy is also expected to benefit, earning RM180 million in duties and taxes over the same period.

As Malaysia’s leading automotive exporter, Proton is actively working to strengthen its global supply chains by engaging with its vendors and promoting international collaboration. This strategy is set to boost the company’s long-term growth and support the development of the automotive industry in new markets.