In something of a coals-to-Newcastle development, PSA do Brasil will start exporting 110bhp 1.6-litre 16-valve engines to France next year, writes Rogerio Louro.

The engines are made in the Porto Real engine plant, in Rio de Janeiro state, opened last February.

This will be the first time that PSA's Brazilian operation has exported engines to Europe though it has previously sent them to Argentina and Uruguay.

The company expects to ship about 15,000 engines in 2003 to France in 2003 for the Peugeot 307.

PSA Brazil's engine plant is located directly in front of the car factory that has been building the Citroën Picasso minivan and the Peugeot 206 supermini since 2001.

The factory also started production of the Citroën C3 in September.
PSA invested $US50 million in its Brazilian engine plant which can turn out 50,000 engines a year.

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