PSA Group has started to produce engines at its new Porto Real plant, in Rio de Janeiro state, writes Rogério Louro Alves.

The new factory is next to the vehicle plant opened last year to build the Peugeot 206 compact hatchback and Citroën Picasso minivan.

PSA Group invested $US50 million in the new plant which can build 50,000 110bhp, 1.6-litre, 16-valve engines per year for Peugeot and Citroën vehicles assembled in Brazil, Argentina and Uruguay.

The plant will be officially opened on March 7 in the presence of PSA Group president Jean-Martin Folz.