Peugeot raises gearbox production for China

PARIS, March 28 Fri Mar 28, 2014 6:53am EDT

PARIS, March 28 (Reuters) - PSA Peugeot Citroen is stepping up gearbox production at a plant in Valenciennes, northern France, to meet Chinese demand, the French carmaker said on Friday after signing a tie-up with China-based Dongfeng earlier this week.

The Paris-based carmaker said it would hire about 50 temporary workers and add new shifts to raise daily output to 1,900 AL4 gearboxes in June from 1,300 currently.

On Wednesday, Peugeot and Dongfeng signed a long-awaited agreement to deepen their existing joint venture, bringing the French carmaker much-needed cash and greater access to Asia.

The Valenciennes plant employs 2,200 workers and supplies gearboxes for about half the Peugeot and Citroen vehicles sold worldwide. (Reporting by Dominique Vidalon; Editing by Andrew Callus)