PARIS, Feb 26 (Reuters) - French carmaker PSA and Malaysian company Naza Corp have signed a deal to jointly produce PSA-branded cars for Malaysia and other Asian markets, as part of plans by the owner of Peugeot to boost its presence in the region.
The companies said on Monday that they had signed a share sale agreement and a joint venture agreement in order to establish a shared manufacturing hub in Gurun, Kedah, in Malaysia.
The Malaysian plant would have a capacity of 50,000 vehicles. The first vehicles are set to be produced in 2018 for Peugeot and in 2019 for the Citroën model, they added.
PSA said the deal with Naza Corp formed part of the company's "Push to Pass" strategic plan to boost sales. That plan envisages a 10 percent increase in sales by 2018 and a further 15 percent by 2021 versus 2015 for the French group.
"The creation of the ASEAN (Association of South East Asian Nations) hub in Gurun, Kedah is a significant leap forward for Groupe PSA which will lead to the development of a profitable business in the region as part of our Push to Pass strategic plan," said Carlos Tavares, chairman of the Managing Board of Groupe PSA, in a statement. (Reporting by Sudip Kar-Gupta; Editing by Subhranshu Sahu)