PSA Peugeot Citroen has announced that it informed the Russian authorities about its decision to build a plant in the city of Kaluga, 180km southwest of Moscow.
Scheduled to come on stream in 2010, the new factory will produce vehicles in the midsize segment, which represents nearly 60% of all sales in the Russian market.
The company said that the new facility is central to its development strategy in Russia, which is considered to be a priority growth market. The group plans to sell 0.1 million Peugeot and Citroen vehicles in Russia in 2010, with a commitment to eventually raising this number to 0.3 million a year.
The signing ceremony for the project is scheduled to take place in Russia in early 2008.
