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Peugeot's Slovak factory expected to boost output with new model

PRAGUE, March 27 (Reuters) - PSA Peugeot Citroen's Slovak operation expects to raise annual capacity above 300,000 cars by 2017 with the start of production of a new Citroen model, the company said on Friday.

The French carmaker aims to build on record production at its Slovak factory last year, benefiting from an economy that outpaced most of its euro zone peers and is powered by a car sector in which Peugeot, Germany's Volkswagen and South Korea's KIA produced more than 970,000 vehicles last year.

"The new model will enable us to improve utilisation of the Trnava factory. It creates conditions for raising capacity over 300,000 cars a year," Remi Girardon, the head of Peugeot's Slovak business, was quoted as saying by news agency Sita.

The factory, which produces smaller car models, is expected to lift output to 275,000 vehicles this year and maintain that level in 2016, a company spokesman said.

Peugeot's Slovak unit raised production last year by 2.7 percent to 255,176 vehicles, with utilisation at 85 percent, the company said.

(Reporting by Robert Muller; Editing by David Goodman)