Renault will spend EUR100m on the Dacia plant in Pitesti, Romania, to increase capacity from 235,000 vehicles a year to 350,000 by 2008.
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The investment will enable the plant to increase its stamping output, add a new paint shop, and enlarge the body-n-white and assembly shops.
The Pitesti plant currently manufactures the Logan sedan and Logan MCV. It will start producing the third model in the Logan programme, a light commercial vehicle, in early-2007. The plant built the last example of its previous light commercial vehicle, a Renault 12-based pick-up on 8 December.
Plant output will be adjusted temporarily owing to the work, with an eight-day stop to Logan sedan production at the end of the yea. From early February 2007, Logan MCV output will be increased from 250 to 300 units a day in order to reduce delivery times, currently averaging two months.
The announcement follows reports at the beginning of November that Renault would invest EUR500m in a design and development centre in Romania. Renault confirmed then that it was considering building a research and development centre in the country, but that its investment would likely be around EUR100m.
