Proton’s Iranian subsidiary dissolved

Photo of Proton showroom in Shah Alam for the story of Proton buy over by Geeely...... Sam Tham/Star Publication.

KUALA LUMPUR: Proton Holdings Bhd’s indirect wholly owned subsidiary Proton Motor Pars Co (PMP), set up in Iran in 2011 to engage in car assembly or building of vehicles and relevant accessories and spare parts, has been dissolved without starting any operation.

Proton’s parent DRB-Hicom Bhd told Bursa Malaysia that  PMP had on Monday been notified by PMP’s liquidator confirming that PMP had been dissolved on that date.

In an announcement in January, DRB-Hicom noted that PMP had been dormant since its incorporation in August 2011 and it had no intention to carry on business or operations in the future.

“The dissolution of PMP is part of the streamlining exercise undertaken by DRB-Hicom to close down companies that are dormant or have ceased operations,” the group said.

In December last year, Malaysian International Chamber of Commerce and Industry (MICCI) president Datuk Wira Jalilah Baba was reported as saying Malaysia should intensify its efforts in the Iranian market, including the automotive sector. 

“Now that it (Iran) is opening up its market, after the US-led sanctions were lifted (in January 2016), we have to take action and be more pro-active. I believe Proton is already planning to promote its cars there,” said the former director-general and CEO of Malaysian Investment Development Authority.

She said she believed Proton cars used to sell well in Iran before trade sanctions were imposed on the country.

On Proton setting up PMP, the national carmaker previously told StarBiz that Iran was identified as one of the core markets for Proton’s long-term business as it offered sizable potential with substantial future growth.