Dongfeng Peugeot Citroen halts plant-3 project

Shanghai, July 27 (Gasgoo.com) Dongfeng Peugeot Citroen Automobile (DPCA) has suspended the project of setting up its third plant in central China's Wuhan city as the joint venture's current two plants have not operated to the full capacity yet, China Business News reported today.

DPCA, as a joint venture established in 1992 between PSA Peugeot Citroen and Dongfeng Motor Corp, now has an annual capacity of 300,000 vehicles. In October 2006, the venture started building its second plant, which will go into operation soon this autumn with an annual output of 150,000 units. It will make the new Citroen C5 at first on platform 3.

In March 2008, DPCA's first plant, which produces both Peugeot and Citroen cars, had its phase-2 expansion project completed to have a top capacity of 300,000 vehicles.

The third-plant project was initiated in September 2007 by PSA as part of its long-term plans for the 2010-2015 period. The French carmaker, then headed by Christian Streiff, had decided to join hands with its Chinese partner Dongfeng Motor Corp to build another new manufacturing base, which was scheduled to start production in 2011.

Liu Weidong, general manager of DPCA, told reporters that the siting of the third plant has not been finalized yet. It may be built in other cities than the company's headquarters city of Wuhan, and it may be either an all-new facility or the expansion of another automaker's existing plant.