French car manufacturer, Peugeot, has cancelled the construction of a second assembly plant at its Trnava plant in Slovakia in a bid to cut costs amid a slump in sales.
The company had budgeted US $444 million (SKK13.1 billion) for the project, which was planned for a new model to
be launched in 2010. Assembly will now take place at the existing facilities, saving $254 million.
In July, Peugeot blamed rising raw materials costs, weak European sales and fierce competition from Asia for a 60% plunge in profit in the first half of this year.For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.