BUSINESS FOCUS - AUTO FOCUS

PSA wraps up land

FRENCH auto giant PSA Peugeot Citroen announced in January 2003 that it would build a new €700 million factory in the western Slovak town of Trnava, 45 kilometres northeast of the capital, Bratislava. Top managers of PSA and leading Slovak politicans laid the cornerstone for the new project in June last year.
The Slovak Spectator asked Alain Baldeyrou, general manager of the Peugeot Citroen Trnava Project, about the land-purchase process.

FRENCH auto giant PSA Peugeot Citroen announced in January 2003 that it would build a new €700 million factory in the western Slovak town of Trnava, 45 kilometres northeast of the capital, Bratislava. Top managers of PSA and leading Slovak politicans laid the cornerstone for the new project in June last year.

The Slovak Spectator asked Alain Baldeyrou, general manager of the Peugeot Citroen Trnava Project, about the land-purchase process.


The Slovak Spectator (TSS): How much land did the company have to purchase, and what price did you pay?

Alain Baldeyrou (AB): We had to purchase 192.13 hectares. The purchase price of Sk130 (€3.22) per square metre was set based on expert appraisal. The price exceeded the market price of the farmland in the given locality at that time [Sk50 - 70 (€1.24 - 1.73) per square meter].


TSS: How many original owners were involved? How has the land purchase progressed?

AB: The purchase of the land for the construction was completed in September 2003 and 257 landowners were involved. The land that will serve as the site for the future supplier park near the PSA plant is being wrapped up now. The acreage of the land for the industrial and supplier park is 51 hectares.


TSS: How long did the purchase process last? Were there any complications?

AB: The process of buying the land for PSA utilities lasted approximately eight months [December 2002 - July 2003] and was completed without any complications.

Purchasing the land for the supplier park started in November 2003 and is ongoing.

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