PSA Peugeot Citron's Trémery plant in north-eastern France has announced plan to add a new production module to meet rise in demand for the EB Turbo PureTech three-cylinder petrol engine.
The company's executive committee took the decision based on its findings of a quality, cost and investment competitiveness survey undertaken in 2014.
The engine is used on Peugeot 208, 308, 2008 and 3008, the Citron C3, C4, C4 Cactus and C4 Picasso and also the DS 3 and DS 4.
It helps in cutting down fuel consumption and CO2 emissions by an average 18%.
PSA executive vice president, director supply chain and manufacturing Yann Vincent said: "This 200,000 unit production module was assigned as a result of our more flexible manufacturing system and the work done at Trémery to meet competitiveness targets across the value chain.
"We are still actively rolling out our Excellent Plant project, which aims to bring our industrial facilities into line with the very highest global standards."
