The Iveco Fiat plant in Sete Lagoas, Minas Gerais state, will produce the Boxer van for Peugeot do Brasil, Jornal do Commercio reported.

The van will be launched in September and Peugeot expects to sell 2,000 units by 2002.

The PSA group also plans to export the Brazilian-built Boxer to other Latin American countries such as Argentina and Uruguay.

The Sete Lagoas plant can produce 27,000 vehicles a year and is a $US240 million joint venture between Iveco and Fiat.

The Peugeot Boxer is a product of the joint venture van project between Citroen (Jumper/Relay), Fiat (Ducato/Talento) and Peugeot.

The main production plant for the three companies' derivatives is Sevel Sud in Italy, owned 50-50 by the two PSA Group companies and Fiat.