The French Peugeot-Citroen car group's parts subsidiary Faurecia Industrie is to build a new factory in Hungary to produce muffler parts, its European manager Jean-Pierre Buchwalder said, according to Agence France Presse. The 20-million-euro ($US17.5 million) investment in the western Hungarian town Vasvar is to produce 1.5 million muffler parts annually, primarily for Opels, Audis and Volkswagens, Buchwalder told a press conference.

Faurecia was to start building the 10,000-square-metre unit next year, and trial production was due to start in 2002. It planned to have a 400-strong staff from 2005 onwards.

Faurecia, a major supplier to General Motors, Volkswagen, Audi, Seat, Ford, Renault, Toyota and Daimler Chrysler in 27 countries, expected a turnover of 5.6 billion euros ($US4.9 billion) this year, Buchwalder said.