Sweden's AB Volvo has announced plans to build trucks and buses in Russia through a joint venture with AFK Sistema, a Russian financial and industrial group.
According to Starks News Service the venture will produce about 300 trucks a year, starting this summer, at a plant near Moscow. The company said it may build a new assembly plant if increased demand merits further investment.
Volvo previously signed a letter of intent with the City of Moscow to explore a joint venture with Zil Auto, which builds trucks and limousines. But the two companies were reportedly unable to reach a final agreement. Volvo said it will hold a controlling stake in this new venture but gave no additional details.