Isuzu is to sign a memorandum of understanding with major Russian automaker OAO Ulyanovsky Avtomobilny Zavod (UAZ) to set up a joint venture in Russia for production of small trucks, the Nikkei business daily said.

The Japanese automaker is to take a majority stake in the new firm, the newspapers said without citing sources.

Isuzu, which now outsources truck assembly to the OAO Severstal-Avto group company, also plans to step up technological cooperation with the existing Russian partner, the report said.

An Isuzu Motors spokesman confirmed the company was considering expanding cooperation with the Russian firm as both its sales and production are growing steadily there.

“During a visit by the Russian prime minister, we may confirm progress in talks for a further expansion of our ties, which may include a joint venture, but we still need time to announce details,” he added.

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