The head of the Swatch group, Nicolas Hayek, has announced plans to invest more than SFr2 billion in production and distribution over the next four years.

In an interview with the French-language Radio Suisse Romande on Wednesday, Hayek said the investment programme would be one of the biggest in Swiss commercial history.

The investments are to focus on production centres for watches and watch components, jewellery and accessories as well as on wholesale and retail distribution.

The construction of a second plant at Fontaines in canton Neuchatel will be a major part of the project. SFr20 million will be invested in the unit, which will produce mechanical watch parts.

Hayek says further details of the investment programme will be unveiled throughout this year.

He said he wanted to increase Swatch's capacity to meet the increasing demand for luxury watches.

Swatch group sales are expected to exceed SFr4 billion this year.

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