VIENNA – Sollers, the Russian vehicle maker and Ford’s partner in a future joint venture, confirms plans to erect an engine factory in the Russian Republic of Tatarstan.

The new engine plant, which will be part of the Ford Sollers JV, will be constructed in the Alabuga Special Economic Zone in Elabuga, Tatarstan, Sollers majority owner and Managing Director Vadim Shvetsov tells the Vedomosti business daily.

The plant will have annual capacity for about 200,000 engines and is to start production within three years.

Shvetsov says a decision on specifically what engines will be built at the JV plant will be made by the end of the year.

The supervision council of the Alabuga Special Economic Zone recently approved the Ford Sollers project.

Ford Sollers plans to invest some $800 million in the zone. The outlay will finance the retooling of the existing Sollers-Elabuga plant for production of Ford Transit vans and the construction of the new engine plant.

The Sollers-Elabuga operation currently builds previous-generation Fiat Ducato commercial vans. The first locally made Ford Transits are expected to be produced by year’s end.