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IN SHORT

PSA decides not to build second plant

FRENCH auto-maker PSA Peugeot Citroen confirmed on September 8 that it would not build a second plant in Trnava as planned, but instead would expand production at its existing plant and recruit more people.

The concern originally planned to invest Sk13.4 billion in building a second plant with an annual output of 150,000 cars, for which it was to hire 1,800 people. However, rising competition on the European market forced PSA to "seek more efficient ways of manufacturing throughout the whole PSA group," according to director Alain Baldeyrou.

Baldeyrou gave no further details, except to say that the production increase is scheduled for 2010.

The PSA plant in Trnava launched production in June, and plans to turn out 60,000 Peugeot 207 cars by the end of the year and 240,000 in 2007. Construction began in 2003 with an investment of €700 million.

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