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PSA Peugot to invest 50 mln eur in Argentine plant

PARIS, Feb 20 (Reuters) - French carmaker PSA Peugeot Citroen said on Thursday it would invest 50 million euros ($53.72 million) to start making its top-selling Peugeot 307 car in Argentina from next year.

The firm would make 16,000 cars at its factory in Buenos Aires in its first year of operation, marking the introduction of its new mid-range car platform in Argentina.

Some 60 percent of cars made would be sold in Latin America.

"This investment decision confirms the long term strategy of the group in Latin America, as well as its commitment to sustaining its business despite the difficult economic environment," the group said in a statement.

In 2002 the Buenos Aires plant produced 17,800 vehicles, and currently employs 1,560 people.

PSA said the car market in Argentina tanked 53 percent in 2002 amid economic strife, but that PSA edged its market share up to 18 percent during the year.