Proton Holdings Bhd (5304 –ed.) has not been served with any summons by the Chinese joint venture (JV) partner, Goldstar Heavy Industrial Co Ltd, and therefore was not aware of the basis of the purported claim, it said in a reply to Bursa Malaysia query.
Bursa Malaysia queried the national carmaker on a news report that said Goldstar was claiming RM520 million from Proton for breach of contract.
[the Star daily said Wednesday (Dec 17, 2008) that Goldstar had started legal action in Guangdong province, seeking about 1.0 billion yuan in compensation over the failed venture, Malaysiakini news portal reported (AFP’s version here) – ed.]The JV involved Proton taking up a 49 per cent stake in Goldstar for RM85.5 million. — Bernama via M/Insider
Proton also confirmed the JV company still existed though it never commenced business operations due to the failure of Goldstar to meet its contractual obligations including procuring the necessary approvals from the relevant authorities in China.
“The parties have referred the dispute to arbitration, in accordance with the spirit of the JV agreement,” it said.
Proton’s JV collaboration, signed in early 2002, was to assemble Waja cars and make parts in China, tap the vibrant growth in the world's populous nation as well as cater to its neighbouring countries.
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