Russia's Chechnya says car production starts

MOSCOW, May 8 (Reuters) - A new factory in the south Russian republic of Chechnya assembled its first cars on Thursday, the Chechen government said, in a boost for the Kremlin which wants to present the war-scarred region as rejuvenated.

Chechen President Ramzan Kadyrov, who drives himself around the region in a 4x4 Porsche and owns a Ferrari, will receive the first VAZ-21074 car -- a small, boxy Lada model reminiscent of the Soviet era, the statement on the Chechen government's website said.

Russian soldiers have fought two wars since 1994 against rebels in the mainly Muslim republic of Chechnya and although fighting still flares the Kremlin is eager to pronounce the conflict as over.

Moscow has backed Kadyrov, a 31-year-old former rebel, to bring stability to the region.

Over the past few years, workmen have repaved Chechnya's roads and reconstructed the capital Grozny, once described by the United Nations as the most destroyed city in the world.

The factory in Grozny is a deal with the AvtoVAZ (AVAZ.MM) carmaker and the statement said it would boost production from Thursday's initial two cars to 20 a day and provide around 10,000 jobs -- badly needed in Chechnya where unemployment is around 75 percent. (Writing by James Kilner)