Regarded as one of the largest privately-owned conglomerates of Malaysia, Naza Corp Holdings has recently signed a deal with Group PSA to jointly manufacture PSA-branded cars for the nation and other Asian markets. Reportedly, the latest collaboration is said to be a part of the French automotive giant’s expansion plans to fortify its presence in the rapidly growing ASEAN region.
As per a report published in Reuters, both the companies signed a share sale contract on Monday and agreed to establish a shared manufacturing plant in Gurun, Malaysia. The total value of the deal has not been disclosed so far, however, it is being speculated that Group PSA would reportedly hold a 56 percent stake in the Naza Automotive Manufacturing facility located at Gurun. For the record, this would be the first car manufacturing plant of Group PSA in the ASEAN region.
This deal has also been projected to establish Naza Corp Holdings as the only distributor of Citroen, DS Automobiles, and Peugeot in Malaysia’s automotive industry. The firm would further explore distribution prospects in the overall ASEAN region over the forthcoming years, cite sources.
The first vehicle to be rolled out under this collaboration in 2018 would probably be the 3008 SUV. Following this, the Citroen C5 Aircross is likely to debut in the Malaysia market in the next year.
Speaking on the development, the Chairman of the Managing Board of Group PSA was quoted stating that the creation of the ASEAN manufacturing hub in Malaysia is a remarkable step for expanding the firm’s global footprint. He further stated that as the firm’s Push to Pass strategic plan is being implemented vigorously, the latest deal would lead to the development of lucrative business opportunities in Asia.
For the record, the Naza Automotive Manufacturing unit currently has a workforce of around 450 people and vehicle production capacity of approximately 50,000 units.
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