Proton to invest in British firm

Proton to invest in British firm

KUALA LUMPUR (AFP): Malaysia's Proton Bhd Saturday said it was investing seven million pounds (US$11 million) to build an engineering facility at British sports car maker, Lotus Group International's auto plant in Norfolk.

Proton, Malaysia's largest auto maker, which last month acquired control of the Lotus Group, said the facility it dubbed the "Project Center" would allow Proton to undertake engineering design and prototype vehicle-body build at Hethal in Norfolk.

"The foundation stone for the investment at Lotus was laid today (Saturday) by (Malaysian) Prime Minister Mahathir Mohamad," Proton said in a statement released here, just hours ahead of Mahathir's visit to the Lotus plant.

Proton, and its controlling shareholder, Yahaya Ahmad -- dubbed Malaysia's auto king -- announced on Oct. 30 they had collectively bought an 80 percent stake in Lotus for 51 million pounds (US$81.6 million).

Yahaya, who is chairman of Proton, is now also chairman of Lotus.

Following the acquisition, Proton committed itself to a major investment program in the financially-strapped Lotus to expand manufacturing, extend the product range and develop the British company's engineering facilities.