PSA signs Kazakhstan vehicle-assembly deal
Automaker says agreement could generate 300 jobs in France
The Peugeot 301, pictured, is one of the models that will be assembled in Kazakhstan.
PSA/Peugeot-Citroen says a deal with the Russian company Agromash Holding to assemble cars in Kazakhstan could generate more than 300 jobs in France.
The agreement, signed on Thursday in Paris, paves the way for the assembly of the Peugeot 301 sedan, 3008 crossover and 508 sedan alongside the Partner light commercial van in the central Asian country. Production is set to start in June.
Initial assembly capacity will be 4,000 cars, but may eventually total more than 10,000, PSA said in the statement. The deal is also expected to create 150 jobs in Kazakhstan.
"The deal involves the assembly in Kazakhstan of car kits produced in France," a PSA spokesman said on Wednesday.
Under the deal, PSA will also sell the Russia-built Peugeot 408 in Kazakhstan.
PSA, which has announced plans to slash thousands of jobs to cope with shrinking car sales in Europe, last week said it also was in talks on sharing vehicle production with Russia's ZIL.
Agromash Holding currently assembles cars for the Korean carmaker SsangYong Motors Corp. in Kazakhstan.
Reuters contributed to this report
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