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UPDATE 1-PSA to invest 130 mln euros in new Slovak model

Published 04/11/2011, 09:07 AM
Updated 04/11/2011, 09:12 AM
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* PSA to invest 130 million euro into new Slovak model

* Further Japan-related supply disruptions possible

(Adds details, background, quote)

TRNAVA, Slovakia, April 11 (Reuters) - PSA Peugeot Citroen will invest 130 million euros ($188 million) at its Slovak assembly plant to add a new model, the company's chief executive officer said on Monday.

PSA Peugeot Citroen Chief Executive Philippe Varin said the car maker would also add around 900 new jobs to the 3,000-strong workforce at the factory, located in the western Slovak town of Trnava.

Company officials, however, did not give any details about the new model, which is expected to go into mass production next year.

PSA, which is among the Slovakia's top exporters and major employers, made 187,000 cars last year, compared with 203,800 in 2009. The assembly plant's annual production capacity is 300,000 cars, but has not been running at full speed.

The Slovak site currently makes some Peugeot 207s as well as the Citroen C3 Picasso.

PSA Peugeot Citroen reduced production last month at some European sites due to cuts in supplies from its key Japanese partner Hitachi.

Varin said production at the French car group's factories was returning to normal, but it could face further disruptions in the future.

"Situation is getting back to normal, but there is still some uncertainty. It is possible there will be further disruptions in supplies, but it is hard to foresee them today," Varin told reporters.

(Reporting by Martin Santa. Editing by Jane Merriman)

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