French conglomerate PSA Peugeot Citroen will build a new plant in Eastern Europe and create jobs building new, clean 1-litre 3-cylinder engines.

A new family of super-clean engines displacing 1-litre with 3 cylinders, is to be developed by Peugeot and Citroën brands through their family head PSA. The company says these engines will range in power from 70 to100 hp (52kW to 74.6kW). They will be able to dip below 100 g/km in CO2 emissions, thus helping PSA maintain its claimed lead in low emissions. No specific vehicles have been confirmed for these new engines yet, but you can bet your last croissant that cars like the Peugeot 107 and Citroën C1 will be first in line.

To be built in France and Eastern Europe, the engines will have their plants at the PSA Peugeot Citroën site at Trémery and a second location yet to be confirmed. About 500 jobs will be created by the plant in France, which has on average, produced 1.38 million engines for the past 29 years. This second one, in Eastern Europe, will be in working order by 2012.

Gallery: PSA Develops 1-litre 3-cylinder Petrol Engines