Peugeot looking at four locations for eastern European plant

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Peugeot looking at four locations for eastern European plant

Peugeot Citroen is considering locations in Poland, Ukraine, Turkey and Romania for the second of two new plants set to produce low-emission engines, a spokesman said.

Laurent Cicolella said the investment was likely to prove similar to the first 300 million euros factory for the engines planned in France, denying a Polish newspaper report that it was planning a larger 600 mln euro investment.

'The first plant will come on line in France and is planned to cost around 300 million,' he said.

'The second is planned to be similar, although it is a greenfield investment and may cost a little more. There are four potential locations being considered - in Poland, Ukraine, Romania and Turkey.'

He said the eastern European plant, like its French twin, should employ around 500, not the 5,000 reported by Polish daily Puls Biznesu Tuesday.

'This report just appears to be wrong,' Cicolella said.

The paper earlier reported a source involved in talks with the company as saying: 'Last week, representatives of Peugeot Citroen were in Poland. They are looking at sites for an investment of 600 mln euros, as a result of which 5,000 jobs will be created. They are looking for a site of around 400 hectares.'

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