Russia’s Kaluga region wins more car business

Peugeot Citroen has signed a deal to construct a car assembly plant in Russia's Kaluga Region, bringing even more jobs to the area.

The company is to invest £ 300 million in the plant, which will have a capacity of 150 thousand cars a year.

The plant is due to be completed by 2010.

Rival car maker Volkswagen has already started construction of an assembly plant in Kaluga.

Peugeot Citroen is now in talks with Mitsubishi on production of a japanese model at the future plant.

“If we succeed with that co-operation with Mitsubishi, some Mitsubishi cars will be built in our new factory. But in any case, if negotiations are not successful – we will follow our own path and we will build our project as it is planned for the moment,” promised Didier Aleton, the head of Peugeot Projects Russia.