AIRLINK 74.00 Decreased By ▼ -0.25 (-0.34%)
BOP 5.14 Increased By ▲ 0.09 (1.78%)
CNERGY 4.55 Increased By ▲ 0.13 (2.94%)
DFML 37.15 Increased By ▲ 1.31 (3.66%)
DGKC 89.90 Increased By ▲ 1.90 (2.16%)
FCCL 22.40 Increased By ▲ 0.20 (0.9%)
FFBL 33.03 Increased By ▲ 0.31 (0.95%)
FFL 9.75 Decreased By ▼ -0.04 (-0.41%)
GGL 10.75 Decreased By ▼ -0.05 (-0.46%)
HBL 115.50 Decreased By ▼ -0.40 (-0.35%)
HUBC 137.10 Increased By ▲ 1.26 (0.93%)
HUMNL 9.95 Increased By ▲ 0.11 (1.12%)
KEL 4.60 Decreased By ▼ -0.01 (-0.22%)
KOSM 4.83 Increased By ▲ 0.17 (3.65%)
MLCF 39.75 Decreased By ▼ -0.13 (-0.33%)
OGDC 138.20 Increased By ▲ 0.30 (0.22%)
PAEL 27.00 Increased By ▲ 0.57 (2.16%)
PIAA 24.24 Decreased By ▼ -2.04 (-7.76%)
PIBTL 6.74 Decreased By ▼ -0.02 (-0.3%)
PPL 123.62 Increased By ▲ 0.72 (0.59%)
PRL 27.40 Increased By ▲ 0.71 (2.66%)
PTC 13.90 Decreased By ▼ -0.10 (-0.71%)
SEARL 61.75 Increased By ▲ 3.05 (5.2%)
SNGP 70.15 Decreased By ▼ -0.25 (-0.36%)
SSGC 10.52 Increased By ▲ 0.16 (1.54%)
TELE 8.57 Increased By ▲ 0.01 (0.12%)
TPLP 11.10 Decreased By ▼ -0.28 (-2.46%)
TRG 64.02 Decreased By ▼ -0.21 (-0.33%)
UNITY 26.76 Increased By ▲ 0.71 (2.73%)
WTL 1.38 No Change ▼ 0.00 (0%)
BR100 7,874 Increased By 36.2 (0.46%)
BR30 25,596 Increased By 136 (0.53%)
KSE100 75,342 Increased By 411.7 (0.55%)
KSE30 24,214 Increased By 68.6 (0.28%)

imagePARIS: French auto group PSA Peugeot Citroen has chosen to build its fourth factory in China with its new shareholder Dongfeng at Chendgu, a town in the west of China, the group said on Wednesday.

The two partners already own three factories in the country, at Wuhan in the centre with capacity to make 750,000 cars per year.

Construction of the fourth plant is to begin in the second half of this year and will increase the group's total Chinese capacity to one million vehicles in 2016, PSA Peugeot Citroen said in a statement.

The new facility will focus on making crossover vehicles -- a cross between a car and a sport utility vehicle -- and also four-wheel-drive vehicles under the Peugeot and Citroen brands, and also under the name Fengshen which is a brand owned by Dongfeng.

The Chinese government is encouraging car manufacturers to build new factories in the west of the country so as to boost development of backward regions.

PSA and Dongfeng are aiming to sell more than 650,000 vehicles this year in China, already the biggest auto market in the world with growth still growing rapidly.

This would rise to 1.5 million by 2020 as a result of their increased cooperation which recently involved Dongfeng becoming a shareholder in PSA.

At the same time the French state also became a shareholder, and the holding of the Peugeot family was diluted.

The group is struggling out of severe financial difficulties, and is increasingly focusing on China as it seeks to diversify away from the mature European market.

PSA has another joint venture with the Chinese group Changan at Shenzhen in the southeast of the country which makes the up-market Citroen DS cars.

Comments

Comments are closed.