First-ever Russian-Japanese auto venture

Russian automaker Severstal-Avto and Japanese truck maker Isuzu will launch a joint venture in the Volga region, after signing an agreement on Monday.

The new company will start production in the first half of next year at two plants: one in Ulyanovsk, and the other in Tatarstan.

The joint venture is aiming to produce 25,000 trucks a year and is the first Russian-Japanese undertaking in the history of the motor industry.

Russia's Severstal-Avto holds a 66% stake in the new company. Isuzu owns 29% and the Isuzu trading house holds the remaining shares.