PSA denies it selected Russia site

PARIS (Reuters) -- French carmaker PSA/Peugeot-Citroen on Thursday denied a report it had selected a site for its planned manufacturing plant in Russia.

"No decision has been taken," a spokesman said, adding a decision was likely before the end of the year.

Interfax news agency on Thursday quoted the mayor of the city of Dzerzhinsk in the Nizhny Novgorod region as saying PSA would build a plant for up to 250,000 vehicles per year at a cost of 300 million euros ($438.8 million) and with 7,000 jobs. PSA would initially assemble 80,000 cars per year.

The Russian market is growing and many European assemblers are seeking sites in the country.