18 Feb '09
French Peugeot Citroen and Japanese Mitsubishi Motors have announced a $592m joint venture to build an auto manufacturing plant in Kaluga, it was reported today.
According to reports, Peugeot Citroen and Mitsubishi Motors are to own 70% and 30% stakes in the JV respectively.
The plant, to be located in the city's Rosva industrial park, is reportedly to create around 3,000 jobs.
Under the project, the plant is to manufacture Peugeot and Citroen C-class cars and 4X4 Mitsubishi, Peugeot and Citroen cars.
The plant's projected annual capacity is 160,000 cars, including 110,000 C-class models and 50,000 4X4's.
Construction is scheduled to get underway in March, with the plant to start operation in 2011.