[Kabar-indonesia] Proton Denies Sale of Indonesian Plant

[Joyo at aol.com]

The Associated Press
Sept. 2, 2006

Proton Denies Sale of Indonesian Plant

KUALA LUMPUR, Malaysia — Malaysia's national carmaker Proton has denied an 
Indonesian newspaper report that it is selling its $24 million Indonesian plant.

The Jakarta Post reported Thursday that Proton's Indonesian unit, PT Proton 
Edar Indonesia, was negotiating with PT Bajaj Auto Indonesia, a manufacturer of 
three-wheeled motorized vehicles, on the possible sale of the plant.

The report said two other companies had also shown interest in purchasing the 
plant located in Cikarang, near the capital, Jakarta.

"The report from Indonesia is inaccurate as we have plans to ramp up our 
presence in the country," said Proton Holdings Bhd.'s managing director, Syed 
Zainal Abidin Syed Tahir, in a statement late Friday.

The plant, which started production recently, can produce up to 50,000 cars a 
year. Current production figures were not immediately available Saturday.

Proton has said it plans to tap large consumer markets in China, India and 
Southeast Asia to boost sales following a lackluster performance in Malaysia.

Proton car sales in Malaysia plunged 21 percent on-year in the first six 
months of 2006 to 60,246 units, according to the Malaysian Automotive Association.

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Joyo Indonesia News Service
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