French car manufacturer Peugeot Citroen has announced plans to build its first factory in Russia, one of Europe's fastest expanding markets.
Peugeot hopes to claim a bigger share of the Russian market
The new plant in the town of Kaluga, southwest of Moscow, will begin work assembling mid-sized vehicles in 2010.
Peugeot Citroen hopes to sell 100,000 vehicles in 2010 and three times that number annually in subsequent years.
Many global firms build their cars in Russian plants to avoid heavy import duties for the Russian market.
Correspondents say Russia is regarded as a lucrative market.
Some 2 million new cars were sold in the country this year, but analysts say low levels of ownership mean that there is room for rapid growth in demand.