PSA Peugeot Citroen and Dongfeng Motor Group are to open their fourth factory in China.
The French company said that it has signed an agreement with local authorities in Chengdu, central China, to start work on the plant, which will add capacity for 300,000 vehicles a year to the output of the partnership’s three existing factories by 2017.
A Peugeot spokesman said: “With this fourth plant, the production capacity of the joint venture will increase to one million vehicles”.
The fourth Peugeot-Dongfeng plant will produce mini-vans and sports utility vehicles for Peugeot, Citroen and Dongfeng’s Fengshen brand, the spokesman said.
Peugeot sold 557,000 vehicles in China last year and is targeting at least 700,000 combined sales this year through the partnership with Dongfeng and a second joint venture with Changan Automobile Group, which manufactures cars for its premium DS brand.