Proton-Geely FSP: Shah Alam operations to relocate to Tg Malim – 250-acre land to be transferred to DRB

Proton-Geely FSP: Shah Alam operations to relocate to Tg Malim – 250-acre land to be transferred to DRB

During a Q&A session following the signing of the Geely-Proton FSP deal, it has been revealed that Proton will fully relocate its Shah Alam operations to Tanjung Malim within the next five years.

As such, the land occupied by Proton in Shah Alam, which totals 250 acres, will be transferred back to DRB-Hicom gradually for development purposes. Talks of shifting Proton’s operations from Shah Alam to Tanjung Malim have been circulating as far back as last year – part of a list of conditions to receive funding from the government.

At the time, the government announced it would provide Proton with RM1.25 billion by subscribing to new redeemable convertible cumulative preference shares (RCCPS). The amount is part of a RM1.5 billion soft loan that was awarded to Proton in April 2016.

Looking to sell your car? Sell it with Carro.

Learn more:

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Gerard Lye

Originating from the corporate world with a background in finance and economics, Gerard’s strong love for cars led him to take the plunge into the automotive media industry. It was only then did he realise that there are more things to a car than just horsepower count.

 

Comments

  • BowArrow on May 24, 2017 at 9:23 pm

    DRB Honda & Audi assembly in Shah Alam.

    Like or Dislike: Thumb up 15 Thumb down 1
  • nutts on May 24, 2017 at 9:50 pm

    So…DRB is GETTING the CROWN JEWEL of the Shah Alam LAND…..

    Develpoment Value and profits ,,,, In BILLIONS
    !!!!

    Like or Dislike: Thumb up 23 Thumb down 1
    • Proton is 100% owned by DRB anyway. All Proton’s assets belong to them.

      Like or Dislike: Thumb up 7 Thumb down 1
    • azrai on May 25, 2017 at 11:38 am

      That’s the first point they getting Proton at the first place.

      Like or Dislike: Thumb up 5 Thumb down 0
    • stasta on May 25, 2017 at 4:20 pm

      since drb get proton land worth billions, why they dont fund proton bailout ? why bailout must come from taxpayer money ?

      Like or Dislike: Thumb up 4 Thumb down 0
  • nutts on May 24, 2017 at 10:03 pm

    Sp DRB gets the JEWEL of the Shah ALam Land ???!!!

    Development value …BILLIONS and Profits…??? Who Benefit s???

    Like or Dislike: Thumb up 12 Thumb down 1
  • old horse on May 24, 2017 at 10:35 pm

    sold Lotus for RM500m, get loan of RM2.5b now wtf is this kind of g arrangement give loan with asset gone..and the share worth junk down the road

    Like or Dislike: Thumb up 7 Thumb down 5
  • Andrekua on May 24, 2017 at 11:22 pm

    What???!!!!! Fuh… no wonder crony company never die… you called this a deal? This is better than JJPTR.

    Like or Dislike: Thumb up 15 Thumb down 0
  • Aero (Member) on May 24, 2017 at 11:51 pm

    It will be sad to lose the PONSB Shah Alam plant, because this is where it all started for Proton.

    The first Saga rolled off the Shah Alam plant in 1985, and after 32 years, new Saga models are still rolling out of the same factory. So far, over 1.8 million Sagas were born in the Shah Alam plant. (a small number of Sagas were also built at Volvo’s plant and now defunct AMIM/ Ford Malaysia’s Shah Alam plant)

    The Wira was also built at the Shah Alam plant. Wiras born here were exported to 50+ countries worldwide, as far away as Russia and Chile. One even reached the North Pole ! All in all, over 1 million Wiras were built at Shah Alam. Some were exported in SKD/ CKD packs to Vietnam, Philippines and Iran.

    The Waja on the other hand was quite special. Not only was it Proton’s first self-designed car, but Proton had also built a new plant within the Shah Alam complex exclusively for Waja production; the Medium Volume Factory (MVF) plant. The MVF plant was built in 2000, three years before the greenfield Tanjung Malim complex. The Inspira was built here, and it today builds the Exora and CP II Perdana.

    The original Shah Alam plant also built the E50 Perdana (Perdana V6 later added body stamping), Arena/ Jumbuck, late model Satria and Putra (transferred from AMM Pekan, if I’m not mistaken), late model Satria Neo CPS/R3 (transferred from Tg. Malim) and late model Waja CPS (transferred from MVF).

    How to know where your Proton is built ? Very simple;

    If you check the VIN (chassis number), look at the 11th character… that is the plant code, which corresponds to the following;

    ‘B’ = Shah Alam (Main plant)
    ‘C’ = AMM Pekan
    ‘F’ = Shah Alam (MVF plant)
    ‘G’ = Tanjung Malim / Proton City

    For example, you have a VIN that reads PL1C97SNRVB012345.

    PL1 = Malaysia, Proton
    C97 = Wira 1.5
    S = Sedan
    N = 5-speed manual
    R = Right-hand drive
    V = 1997
    B = Shah Alam (Main plant)
    012345 = Unique identifier

    Anyway, I hope Proton/ DRB-HICOM will preserve a small area of the original Shah Alam complex for heritage reasons. They could maybe keep just the R&D building… and the CoSE showroom too if possible. The MVF plant is still quite modern, unlike the original Main plant. Proton should salvage what they can from the MVF plant.

    Personally, I am hoping that the Shah Alam plant is bought/ sold to another car company… one which has no factory here ? …

    Why not sell it to Berjaya Group or Sime Darby ? Mazda could transfer their production to Shah Alam, right beside ASSB Toyota. BMW could just as well do the same. The Inokom plant is too crowded and currently assembles Hyundai, Mazda and BMW vehicles. Mazda is the ‘outsider’ really… Sime Darby has the marketing rights to Hyundai and BMW, Berjaya has Mazda.

    Maybe there is a chance that the Shah Alam plant could live on through a new owner. Come on DRB-HICOM, don’t just shut it down and cash in on the land value… do the right thing.

    Well-loved. Like or Dislike: Thumb up 60 Thumb down 8
    • Jonn Dol on May 25, 2017 at 9:28 am

      A huge undertaking for the Shah Alam workforce to relocate to Tg.Malim….not sure how DRB-HICOM will facilitate this process, Proton’s Chairman must explain this tomorrow…

      Like or Dislike: Thumb up 4 Thumb down 0
      • Ex-VGM staff on May 25, 2017 at 2:37 pm

        Actually this is an opportunity proton was waiting for. U see proton city was created similar to Toyota city concept on Japan. But proton was facing difficulties to move the staff there due to lacking of infrastructure s etc.proton city was supposed to replace shah alam some 10 yrs ago as its centre of operations, HQ and most probably R&D.

        Now time has come, proton will offer to its administrative staff a ‘take it or leave it’ option – either move to tg malim or quit. Proton knows many will choose to exit since they have a life here (bought a property, spouse working in Klang valley, children schooling). Proton may even offer some compensations, similar to MAS (current basic salary x no.of years service).

        This way Proton has a chance to reduce its overhead costs of human power down to as low as 60%. and should it requires a replacement can be a lot cheaper in terms of salary pay.

        But I do believe Proton CoE and CoSE will be kept remain at kesas highway, USJ.

        Proton shah alam plant maybe to be rent out to Geely, to produce Geely cars for ASEAN market as well as for Proton to rebadge. Along with its test track. DRB knows property market is not good for the coming years so no point of demolishing everything within the next 5 years or so.

        Like or Dislike: Thumb up 9 Thumb down 0
    • Take a look at shah alam now. With that much space, theres more money to be made in something else rather than just a factory

      Like or Dislike: Thumb up 3 Thumb down 0
    • I rather DRB flattens all buildings there and build affordable housing for the rakyat. we want useful buildings for the country.

      Like or Dislike: Thumb up 3 Thumb down 0
  • krs189 on May 25, 2017 at 8:08 am

    This is a great way to get rid of the dead wood in Proton.

    Those dead wood ‘otai’ would not want to relocate definitely.

    Like or Dislike: Thumb up 5 Thumb down 4
  • nice move by drb to get the shah alam land back for future property development…cunning move

    Like or Dislike: Thumb up 2 Thumb down 2
  • applegreen on May 25, 2017 at 10:02 am

    Bandar Proton change name to Bandar Geely

    Like or Dislike: Thumb up 5 Thumb down 0
  • the only winner fr this deal is syed mokhtar

    Like or Dislike: Thumb up 15 Thumb down 0
 

Add a comment

required

required