Fourth Peugeot-Dongfeng plant in China receives government approval

Move to expand annual production capacity to 1 million units by 2016.

French automaker PSA Peugeot-Citroën says it has received clearance to build a new plant in Chengdu, central China, with local partner Dongfeng Motor Corporation. The fourth plant of the joint-venture (JV) company will start production towards the end of 2016, with annual production capacity gradually reaching 300,000 units, reports Bloomberg. According to the agreement signed with the municipal authority of Chengdu city, construction work will begin in the second half of the year. The Chengdu factory, in Sichuan province, is expected to produce sport utility vehicles (SUVs) and multi-purpose vehicles (MPVs) under the Peugeot, Citroën, and Fengshen brands. Once fully operational, the plant will boost the manufacturers' joint production capacity to 1 million units per annum.