Mitsubishi Motors and PSA Peugeot Citroen have laid the foundation stone of their joint plant in Russia, located at Kaluga, about 110 miles (180km) south-west of Moscow.
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Roland Vardanega, member of the managing board and executive vice president, manufacturing and components, of PSA Peugeot Citroën and Osamu Masuko, president of Mitsubishi Motors Corporation (MMC) laid the stone watched by regional governor Anatoli Artamonov and several hundred guests.
The joint plant held 70% by PSA Peugeot Citroën and 30% by MMC will start producing mid-range (C segment) models from 2011 for Peugeot and Citroën and Outlander-based mid-range SUVs for all three brands. All will be for the Russian market.
The annual production capacity of the plant will be 160,000 units split 110,000 C segment and 50,000 SUV. Over time, its capacity may be increased to 300,000 units to meet expected growth.
The plant will employ about 3,000 people and the joint initial investment for the two partners is EUR470m.
Didier Aleton of PSA Peugeot Citroën, former director of the Russia project, has been appointed managing sirector of the new joint venture.
Roland Vardanega said the ceremony marked “the starting point of a tremendous long-term manufacturing project on a highly-promising market, with a partnership based on sharing best practice to reinforce mutual efficiency”.
Osamu Masuko said “this project is the outcome of over a year’s intense discussions and will lead to even deeper technical exchanges, rich in potential for the two automobile groups”.
The Kaluga site of about 200 hectares includes 50 hectares earmarked for a suppliers park. The plant will press panels, weld, paint and assemble the initial 160,000 vehicles per year operating in three shifts.
