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PSA and Mitsubishi Inaugurate Russian Plant

French giant PSA Peugeot Citroen and Mitsubishi Motors Corporation have officially started vehicle production at their joint plant in Russia, PCMA Rus. Owned 70 percent by PSA and 30 percent by Mitsubishi, the factory is situated 180 kilometers south-west of Moscow, in Kaluga.

The first product that will roll off the assembly line is the Peugeot 308, followed by the Citroen C4 and the three sister SUVs: Citroen C-Crosser, Peugeot 4007 and Mitsubishi Outlander. The plant will become fully operational in 2012, when total annual production capacity is expected to reach 125,000 units. 85,000 of these will consist of mid-range sedan vehicles for Peugeot and Citroen while the remaining 40,000 will be mid-range SUVs for Peugeot, Citroen and Mitsubishi. Initial production will be 25,000 units.

The PCMA plant is described by PSA as “an extremely compact factory”, with optimised workspace divided between just two building. One for the paintshop, the other for the body assembly workshops. "We have confidence in the potential of growth in the Russian auto market and we are preparing for its recovery. Our priorities are Asia and Russia, which are markets with very strong growth," Philippe Varin, chairman of the managing board of PSA Peugeot Citroen, was quoted as saying by just-auto.com.

The Russian facility will provide jobs for about 3,000 people, 2,600 of these to be trained at the local training center built in cooperation with the government of the Kaluga region. Philippe Varin said the opening of the factory illustrates the company’s desire to establish a long term presence in Russia. “It also embodies PSA Peugeot Citroën’s ambition to be a global player,” Varin added. The opening was also attended  by Takashi Nishioka, chairman of Mitsubishi Motors Corporation.
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