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Naza Corporation Holdings and Groupe PSA announced the signing of a share sale agreement and a joint venture agreement, officially establishing Naza Automotive Manufacturing (NAM) plant in Gurun, Kedah, as the first manufacturing hub in ASEAN for Groupe PSA . The ceremony took place in the presence of the honourable Prime Minister of Malaysia, YAB Dato’ Sri Mohd Najib.
Groupe PSA, as a global automotive player and the second largest carmaker in Europe, is confident and committed to the Malaysian and other ASEAN markets, holding majority stake in the business operations of Naza Automotive Manufacturing (NAM). The Naza Group will have sole responsibility for the distribution of Peugeot, Citroën and DS Automobiles in the domestic market and, with Groupe PSA, will explore distribution prospects in other ASEAN markets to address the potential 680 million customers in the region, where the automotive equipment rate is growing.
With this agreement in effect, Groupe PSA and Naza will jointly produce Groupe PSA branded cars for Malaysia and other ASEAN markets. The Naza Automotive Manufacturing (NAM) plant has been operational since 2004, has a workforce of close to 450 people and boasts a 50,000-vehicle production capacity, operating in line with the highest international quality standards.
Carlos Tavares, Chairman of the Managing Board of Groupe PSA, commented “The creation of the ASEAN hub in Gurun, Kedah is a significant leap forward for Groupe PSA which will lead to the development of a profitable business in the region as part of our Push to Pass strategic plan. We are pleased to partner with Naza Corporation Holdings and continue leveraging our historical relationship.”
“We are grateful for Groupe PSA’s support and confidence in Naza Corporation Holdings as we take our longstanding partnership to greater heights. With this collaboration, there is enormous potential for Kedah to be the leading automotive manufacturing hub in Malaysia,” said SM Nasarudin SM Nasimuddin, Group Executive Chairman/CEO, Naza Corporation Holdings.
This partnership will allow Naza Group to be a major player in the Malaysian automotive industry and accelerate Groupe PSA’s development in ASEAN, as part of Push to Pass strategic plan . The first vehicles is to be produced in 2018 for Peugeot with the award-winning 3008 and in 2019 for Citroën, with brand new iconic C5 Aircross.