French automobile producer PSA Peugeot-Citroën (PSA) has announced that Dongfeng Peugeot-Citroën Automobile Ltd (DPCA), a joint venture between
China-based Dongfeng Motor Corp. and PSA Peugeot Citroën, has signed an agreement with the local authorities in Chengdu for the construction of its fourth
production plant in
China. Construction of the new facility will start in the second half of the current year, with the first car scheduled to be assembled at the end of 2016.
Currently, DPCA has three
production plants in
China, located in Wuhan in Hubei Province, with a total
production capacity of 750,000 units per year. The company's fourth plant will be designed to produce 300,000 units of Dongfeng Citroën, Dongfeng Peugeot and Fengshen-badged SUVs (sport utility vehicles) and MPVs (multi purpose vehicles) per year at full capacity.
DPCA's full-year objective for 2014 is to sell more than 650,000 vehicles in
China. According to the global strategic partnership agreement signed between PSA and Dongfeng, DPCA plans to raise its yearly sales volume to 1.5 million vehicles by 2020.