PSA Peugeot Citroën Agrees Kazakhstan Assembly Deal with Agromash Holding
French carmaker PSA Peugeot Citroën will begin assembling four models in Kazakhstan from June 2013, partnering with Agromash Holding and targeting up to 10,000 units annually.
PSA Peugeot Citroën has signed an agreement with Russian firm Agromash Holding to assemble vehicles in Kazakhstan, with production scheduled to start in June 2013. The deal covers four Peugeot models and is expected to create new jobs in both France and Kazakhstan.
Details of the Kazakhstan Assembly Plan
Under the agreement, Agromash Holding will assemble the Peugeot 301 saloon, 3008 crossover, 508 saloon and Partner commercial van at its Kostanay facility. Assembly will use complete knock-down (CKD) kits shipped from France. PSA Peugeot Citroën said initial capacity is set at 4,000 units per year, with the potential to increase output to more than 10,000 vehicles as demand develops.
The deal also allows for the sale of the Peugeot 408 in Kazakhstan, though this model will be imported from PSA’s plant in Kaluga, Russia, rather than assembled locally. Agromash Holding already assembles vehicles for SsangYong at the same site, giving it experience with foreign brands and CKD operations.
Jobs in France and Kazakhstan
PSA Peugeot Citroën expects the arrangement to create more than 300 jobs in France, where the car kits will be produced, and around 150 jobs in Kazakhstan to support the assembly and distribution operations. The announcement comes as the French manufacturer faces pressure to cut thousands of jobs in Europe due to shrinking sales, highlighting the importance of export-driven projects for its workforce.
Model Lineup for Kazakhstan Assembly
- Peugeot 301 saloon
- Peugeot 3008 crossover
- Peugeot 508 saloon
- Peugeot Partner commercial van
By selecting these models, PSA targets a broad segment of Kazakhstan’s market, from family saloons to commercial vehicles. The 301 and 508 cater to private and fleet buyers, the 3008 addresses the growing demand for crossovers, and the Partner provides a light van option for business customers.
Context: PSA’s Broader Strategy
The Kazakhstan venture is part of PSA’s efforts to expand outside its troubled European base. The company has announced plans to cut thousands of jobs in Europe amid falling sales. Exporting CKD kits for assembly in new markets creates opportunities to support French manufacturing jobs and tap emerging demand. PSA has also been in talks for production partnerships in Russia and has set ambitious sales targets in China, reflecting a wider push to diversify its operations.
For more on PSA’s European job cuts, see PSA Peugeot Citroën to Cut 5,000 European Jobs Amid Cost Pressures. For a look at Renault’s strategy in North Africa, see Renault and Algeria to Finalise New Car Plant Agreement in August.
