INVESTMENT WATCH- MIH says it’s partnering with Malaysia’s Proton for El Nasr car assembly plan: Malaysian auto outfit Proton will partner with the Metallurgical Industries Holding Company (MIH) to assemble cars at El Nasr Automotive and Eamco, MIH board chairman Medhat Nafea was quoted as saying by Al Mal. Proton and MIH will assemble 20k cars a year, with production set to begin within three years, under the terms of an MoU recently signed between the two companies, he said, adding that both companies will soon begin a six-month feasibility study into the project. Nafea had announced the agreement earlier this week, without identifying the foreign partner at the time. Nafea confirmed to Enterprise that these are the same agreements and clarified that 20k is the correct figure.

Background: The MoU has been in the making since last year, and comes as part of plans to develop the automotive industry and increase exports to African countries. The government last March approved a strategy for the industry that aims to encourage car assemblers and feeder industries. A cornerstone of this new plan would be to provide customs discounts to manufacturers on a sliding scale linked to the percentage of locally-produced content they use. It will comprise legislative provisions, incentives, infrastructure improvements, and trade agreements with countries in the region and elsewhere, cabinet said at the time.

Correction (20/06/2020): A previous version of this article incorrectly stated that MIH had signed an agreement with Malaysian auto firm Perodua.