French auto giant Peugeot Citroen signed on Tuesday an agreement to build a car plant in central Russia's Kaluga Region, RIA Novosti reports.
Under the deal signed between Peugeot Citroen and regional authorities in the presence of Russian Economic Development and Trade Minister Elvira Nabiullina, the Kaluga Region's administration will allocate 200 hectares for the construction of the facility, expected to produce 150,000 cars annually.
The project is estimated at 300 million euros ($440 million).
Germany's Volkswagen also began the construction of a factory in the region in January 2007 and is scheduled to complete it in two and a half years. The plant plans to produce up to 115,000 cars.