France's PSA buys majority stake in Malaysia plant

KUALA LUMPUR, Feb 26 (AFP): French carmaker PSA Peugeot Citroen has bought a majority stake in a Malaysian factory run by local group Naza in an effort to increase its Southeast Asian presence, both companies said Monday.

PSA already had a tie-up with Naza Automotive Manufacturing at its factory in Gurun, in the northern state of Kedah, with the plant producing several of the French group's cars for sale in the region.

By acquiring a majority stake in the plant, which has an annual production capacity of 50,000 vehicles, PSA is making Malaysia its manufacturing hub for Southeast Asia.

Naza will distribute Peugeot and Citroen cars, as well PSA's high-end brand DS, in Malaysia and will explore the possibility of distributing PSA models in other Southeast Asian markets, the groups said in a statement.

They did not disclose the value of the deal, which was signed Monday in Kuala Lumpur in a ceremony witnessed by Malaysian Prime Minister Najib Razak. PSA did not reveal the exact size of the stake that had been acquired, saying only it was more than 50 per cent.