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Peugeot gets incentive to build second plant in Brazil

posted Jul 19, 2012, 11:11 AM by Fernando Mello   [ updated Jul 24, 2012, 6:33 PM by Webmaster IMGroup ]
French carmaker has signed a new agreement with the State of Rio de Janeiro to line of credit in the amount of $ 4.8 billion

PSA Peugeot Citroen has signed with the government of Rio de Janeiro a new subsidy agreement to build a second plant in the state and increasing the capacity of existing plant in the region.

According to the company's financial statement, published in the Official Gazette of Rio de Janeiro last week, the credit line is worth 4.8 billion dollars and could be used for up to 50 years, with a grace period of 30 years for payment.

Part of this value may be used in research and development to manufacturing operations, import, assembly, distribution and sale of vehicles. The new agreement replaces the other two contracts that the automaker had with the government. The conditions debit balance of payments, however, are not changed.

The factory that the automaker has in the State is located in the city of Port Royal and was opened for more than ten years. Last year, revenue from sales of PSA in the country totaled 6.6 billion reais. Since the profit amounted to more than 148 million reais in the period.