China’s Dongfeng Peugeot Citroen plans to begin construction of a fourth vehicle assembly plant – with 320,000 unit capacity – in mainland China in the fourth quarter of this year, according to local reports.

Peugeot’s Chinese joint venture has just received approval by the Sichuan local government to build the new plant in the provincial capital Chengdu. It will begin operations in late 2016.

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Dongfeng Peugeot Citroen currently has around 750,000 units in annual vehicle production capacity in Wuhan, in Hubei province. The new plant will take its annual capacity to 1,070,000 units.

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