Russian Firm to Build Peugeot Cars in Kazakhstan

PSA Peugeot Citroen has signed an agreement with JSC Agromash Holding to assemble Peugeot cars and light commercial vehicles from kits at a factory in Kazakhstan.

Moscow-based Agromash was founded in 2009 as a maker of autos and agricultural machinery.

The companies plan to begin production in June at an annual rate of 4,000 vehicles, which could eventually increase to 10,000 units, according to PSA. It expects the arrangement to create 150 jobs in Kazakhstan and 300 in France, where the kits will be made.

The operation will assemble the Peugeot 301 and 508 large sedans, 3008 crossover vehicle and Partner light commercial van. PSA says it also plans to sell its Russia-built Peugeot 408 compact car in the Kazakh market.