Peugeot to invest 430 million Euros in engine plant

PSA Peugeot Citroën is to spend 430 million Euros building a manufacturing facility in France that will produce small petrol engines developed in co-operation with BMW.

PSA Peugeot Citroën is to invest 430 million Euros building a manufacturing facility in Douvrin, France that will produce small petrol engines developed in co-operation with BMW.

The new production unit, which is slated to be operational by 2005, will have a capacity of 2,500 engines a day.

The engines will be used in small and mid-range Peugeot and Citroën vehicles, as well as future MINI models. Ultimately, the new family of engines could equip a million vehicles a year.

The engines will be produced using the ‘module’ manufacturing process, developed for the 2001 launch of the 1.4-litre HDi common rail diesel engine.

This process entails developing a highly integrated production unit, easily duplicable at other sites, that comprises machining lines for the main engine components (cylinder head, crankcase, crankshaft, and connecting rod) and the related assembly lines.

The new unit will cover around 60,000 square meters and will employ 850 people at full capacity.

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