PUTRAJAYA, Malaysia, Feb. 26 (Xinhua) -- Malaysia's conglomerate Naza Corporation Holdings on Monday inked a deal with French car maker Groupe PSA to establish a shared manufacturing hub in the Association of Southeast Asian Nations (ASEAN).
Both parties signed a share sale agreement and a joint venture agreement to establish shared operation of Naza Automotive Manufacturing (NAM) plant in Gurun, Kedah, which will be the first manufacturing hub in ASEAN for Groupe PSA.
Under the agreements, Groupe PSA and Naza will jointly produce Groupe PSA branded cars such as Peugeot, Citroen and DS Automobiles for Malaysia and other ASEAN markets.
Groupe PSA's investment in the NAM plant will also see the implementation of its Efficient Modular Platform (EMP2) dedicated to C (medium cars) and D segments (large cars).
Although Groupe PSA's China and South-East Asia chief executive officer Carlos Tavares declined to reveal PSA's investment details, Naza's chief operating officer Samson Anand George said that Groupe PSA will own up to 56 percent stake at the plant.
The plant is expected to produce Groupe PSA's cars by the end of this year and export to the region next year, Carlos Tavares said.
"The creation of the ASEAN hub 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," he added.
The NAM plant, which has been operational since 504, has a workforce of close to 450 people and boasts a 50,000-vehicle production capacity.
When attending the signing ceremony, Malaysian Prime Minister Najib Razak said he expects Malaysia to benefit from the deal as it will lead to 70 extra local vendors over the next five years, and would create an additional 1,50 jobs in Kedah.
The NAM plant is forecast to produce 18,000 units of cars in 2019, and another 21,000 units in 2020, generating revenues of 724 million ringgit (185 million U.S. dollars) and 967 million ringgit (248 million U.S. dollars) respectively, according to Najib.