OREANDA-NEWS. January 10, 2008. PSA Peugeot Citroen has notified the Russian authorities of its decision to build a plant in the city of Kaluga, 180 kilometers southwest of Moscow, the company's press service reported. Scheduled to come on stream in 2010, the new factory will produce vehicles in the midsize segment, which represents nearly 60% of all sales in the fast expanding Russian market. The new facility is central to PSA Peugeot Citroen's development strategy in Russia, considered to be a priority growth market. The Group plans to sell 100,000 Peugeot and Citroen vehicles in Russia in 2010, with a commitment to eventually raising this number to 300,000 a year.

The signing ceremony for the project is scheduled to take place in Russia in early 2008.