Proton Automobile China (PAC) Ltd, a subsidiary a Malaysia’s Proton Holdings, successfully terminated its joint venture contract with China’s Goldstar Heavy Industrial Co Ltd after the Chinese partner failed to obtain a licence to produce Proton’s vehicles in China.

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International arbitrators, overlooked by the Singapore International Arbitration Centre, ruled in favour of the termination of the joint venture contract by PAC in January. The panel said that Proton had acted in good faith by repeatedly extending the deadline over a period of four years for Goldstar to obtain the vehicle production licence from the Chinese government.


PAC was originally established in 2002 and has yet to carry out any business. Proton said it is now looking forward to pursuing new business opportunities in China.


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