Italy’s Fiat Automobiles SpA signs a letter of intent with longtime Turkish partner Tofas Turk Otomobile Fabrikas A.S. to build 120,000 light commercial vehicles annually in Turkey.

The two companies reportedly will invest €350 million ($470 million) in the project. The vehicle will be produced at Tofa’s Bursa plant in northwest Turkey.

Tofas, owned 37.9% by Fiat, does not identify the vehicle in announcing the deal, but a local media report says it will be a new-model Fiat Doblo commercial van.

Tofas is a joint venture between Fiat and Turkish conglomerate Koc Holding and the sole source for the Fiat Doblo, which mainly is exported to European markets.