Peugeot Citroen's new plant to be sited in Slovakia

Radomsko has lost in its bid to attract PSA Peugeot Citroen (PSA) to build a new plant. The domestic industry's hopes were dashed when the French carmaker chose Trnava, Slovakia as the site for a euro 700 million plant to supply the growing Central European market. Poland's southern town of Radomsko was in the running until the last moment as the government and local authorities had offered a broad package of investment incentives. "Key to [PSA's] decision was better transport infrastructure in Slovakia, closeness to the Danube river and lower labor costs," explained Ewa Freyberg, deputy economics and labor minister, and chief negotiator to PSA. Poland has only 400 km (250 miles) of freeways, creating bottlenecks for investors who prefer the better road networks of its neighbors. (Puls Biznesu, pp.1, 4, 5; Reuters) J.K.