Dongfeng Peugeot Citroën Automobile (DPCA) has signed an agreement today with the city of Chengdu for the construction of its fourth production facility in China. Work will get underway in the second half of the year, with the first car scheduled to roll off the new assembly lines in late 2016.

With total capacity eventually reaching 300,000 vehicles a year, DPCA’s fourth plant will build Dongfeng Citroën and Dongfeng Peugeot and Fengshen- badged SUVs and MPVs.

DPCA’s current production base comprises three plants in Wuhan, which are running two shifts for a total potential capacity of 750,000 units a year. With the fourth plant, production capacity will be augmented to one million units a year in 2016. The company has targeted sales of over 650,000 vehicles in China in calendar year 2014.

Last March, Dongfeng and PSA Peugeot Citroën signed a global strategic partnership with an objective to sell 1.5 million vehicles by 2020.