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PARIS, March 12 (Xinhua) -- France's leading car manufacturer PSA on Monday announced a joint venture agreement with Namibia Development Corporation to start up an assembly plant in the South African country to sell more cars in the region.

"This investment in Namibia is part of the long term strategy of Groupe PSA to increase its sales in Africa and the Middle East, consistent with our target to sell one million vehicles by 2025 (in these regions)," said Jean-Christophe Quemard, executive vice president for Middle East and Africa Region at PSA, in a press release.

Under the deal, the French group would start to produce OPEL Grandland X and Peugeot 3008 in the second half of 2018 at the assembly plant in Walvis Bay, a western port city in Namibia.

"Other products will follow to meet customer demand," he said.

PSA also targeted a volume of 5,000 units by 2020 to meet market demand of the South African Countries Union which includes South Africa, Namibia, Bostwana, Lesotho and Swaziland.

"This agreement is part of the strategic profitable growth plan ... aiming to satisfy customer expectations in all the regions in which the group operates," the automaker said.