BEIJING: The manufacturing base for Proton Holdings Bhd to produce Lotus sport utility vehicles (SUVs) in Quanzhou, in the southeastern province of Fujian, is likely to be constructed later this year.

Quanzhou Development and Reform Commission Deputy Director Wang Ke Si said the carmaker chose Quanzhou as its manufacturing base for its well-established automotive support facilities and good local government assistance.

He said the project, with a total investment of 10 billion yuan, would include the construction of a manufacturing base, headquarters and a research and development centre.

The base will produce Lotus SUVs which will be sold across China as well as other Asian countries, Wang told a group of Southeast Asian journalists on a seven-day media trip to Beijing, Tianjian, southern Suzhou and Quanzhou.

"It is still under way. The land use study has been completed and we have sent the relevant documents to the ministry, the National Development and Reform Commission (NDRC) and other revelant commissions. We will start in the later part of this year," he said.

The trip, organised by the Department of Asian Affairs of the Ministry of Foreign Affairs and assisted by ICC, aims to give Southeast Asian journalists a better understanding of China's production capacity cooperation.

The new China manufacturing base initiative follows a joint venture agreement signing among Proton, Lotus Group International Ltd and Goldstar Heavy Industrial Co Ltd in April last year.

The joint venture company will produce and sell Lotus-branded passenger cars, as well as provide after-sales services in connection with its products in China.

It was reported that Proton and Goldstar will each hold 50 per cent of its registered capital.

Based on the mutually agreed initial business plan covering 2015 to 2030, the companies expect a total investment of 10 billion yuan (RM5.84 billion). --Bernama