Daimler Trucks said it will supply Russian truck maker Kamaz with engines and axles.
The two said Daimler will supply about 7,000 engines and 15,000 axles per year, with deliveries to begin immediately.
Kamaz will receive OM 457 truck diesel engines and M 906 bus natural gas engines, Daimler said in a statement. Financial terms were not disclosed.
The plans come as Russia is planning tighter pollution restrictions, Reuters reported.
Daimler said the two plan to manufacture axles in Russia through a joint venture in the future and that its “commercial vehicle division plans to set up and expand a component network in the country.”
Sergey Kogogin, Kamaz’s general director, said the agreement “opens up great opportunities for our company.”