PSA Peugeot Citroen is planning to expand production at its Trnava plant in Slovakia to 150,000 vehicles per year.
The company said the additional production capacity will be dedicated to a new vehicle.
The new car will be added to the PSA Peugeot Citroen range offer in 2010.
The project will require an investment of approximately €350 million (£236m) in Slovakia and create some 1,800 jobs.
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