KUALA LUMPUR, July 22 (Reuters) - Malaysia's largest car maker Proton said on Monday it would start assembling its cars in Iran from next month to help strengthen its presence in the Middle East.
Proton said its completely-knocked-down (CKD) operations at the Borujed plant south of Tehran would have an initial production run of 90 units of Proton Wira sedan.
Proton, one of Malaysia's two national car makers, and its Iranian partner, Zagross Khodro Car Industries, expect to produce and sell 3,000 cars in the first year, gradually building up to 25,000 units a year in the medium term.
"With an annual growth of more than 20 percent per year, Iran will be an extremely exciting market for us," said Proton's International Business Division general manager Anuar Rozhan.
Iranian President Mohammad Khatami is in Malaysia for a four-day visit intended to strengthen bilateral ties. Some of the businessmen who accompanied Khatami visited the Proton head office outside Kuala Lumpur, a Proton statement said.
Proton shares closed 20 cents down at 9.30 ringgit ($2.44).
$1=3.8 ringgit ((Jalil Hamid, Kuala Lumpur Newsroom +603 2275-6846, Fax +603 2072-6752 [email protected]))