PSA Peugeot-Citroen has agreed to assemble cars in Kazakhstan with the Russian company Agromash Holding.
The French carmaker said the deal could generate more than 300 jobs in France. According to the agreement was signed on Thursday in Paris, the Peugeot 301 sedan, 3008 crossover, 508 sedan and Partner commercial van will be assembled in Kazakhstan beginning in June 2013.
At the beginning, the plant will have an assembly capacity of 4,000 cars, but may eventually total more than 10,000, PSA Peugeot-Citroen said in a 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 was quoted as saying by Reuters. Under the deal, PSA will also sell the Peugeot 408 in Kazakhstan. The 408 is built in Kaluga, Russia.
PSA last week said it was in talks on sharing vehicle production with Russia’s ZIL. Agromash Holding currently assembles cars for the Korean carmaker SsangYong Motors Corporation in Kazakhstan. PSA Peugeot-Citroen has announced plans to cut thousands of jobs to cope with shrinking car sales in Europe.