May 10, 2017 / 12:11 PM / 4 months ago

Slovakia approves tax break for Peugeot investment

An employee works on a Citroen C3 Picasso on a production line at the PSA Peugeot Citroen Slovakia plant in Trnava December 15, 2010. REUTERS/Radovan Stoklasa

BRATISLAVA (Reuters) - Slovakia’s government on Wednesday approved a tax break worth 19 million euros (£16 million) for Peugeot Citroen (PEUP.PA) as part of the French carmaker’s plans to invest 165 million euros to expand its factory in the west of the country.

Peugeot Citroen will invest the amount in the next five years and add 420 new workers to its more than 4,000-strong workforce by the end of 2018, according to a document on the government’s website.

The factory, which makes Citroen C3, Citroen C3 Picasso and Peugeot 208 cars, said in January it expected to raise output to 350,000 units this year, from 315,050 in 2016. Most are exported.

Peugeot Citroen is one of the central European country’s three carmakers, along with Volkswagen (VOWG_p.DE) and Kia (000270.KS). They together have a combined annual output of more than 1 million vehicles.

Jaguar Land Rover [TAMOJL.UL] plant is expected to come online next year, less than 60 kilometres (37.28 miles) from Peugeot’s factory, expanding Slovakia’s car sector, which has the highest per capita output in the world.

Reporting by Tatiana Jancarikova, editing by Louise Heavens

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below