PSA/Peugeot-Citroen SA's joint venture with China's Dongfeng Motor Corp. is expanding its powertrain plant to keep pace with rising vehicle output.
Dongfeng Peugeot Citroen Automobile Co. issued a statement that indicated the plant expansion will be completed in 2015.
The plant, which is located in the central China city of Xiangyang, will build up to 1.2 million engines and 540,000 transmissions a year. That's significantly more than its existing annual capacity of 640,000 engines and 374,000 transmissions.
The project will cost 2.9 billion yuan ($450 million).
The joint venture -- established in 1992 -- has two vehicle assembly plants in the central China city of Wuhan, which is near Xiangyang.
Last year, Dongfeng Peugeot announced plans to open a new assembly plant in Wuhan in 2013 to increase its annual production capacity to 600,000 units, up from 450,000 units.
Last year, the company sold 373,400 vehicles, up 38 percent from 2009. The partnership sold 149,400 Peugeot vehicles and 224,000 Citroens, according to the company's Web site.