PSA Peugeot-Citroen plans to build two car engine factories - one in France and another in a Eastern European country, with Romania, Poland, Turkey and Ukraine on the list of potential hosts, Easybourse.com reports, quoting Dow Jones. The Eastern European factory should start operations in 2012.

The investment would amount to 300 million euro and the pick will be made by the end of 2008, according to the source. The factory would build small engines with very low carbon emissions.

Investments for the French factory would also amount to 300 million euro and it should start work by 2011.