Sinotruk sets up JV in Russia in overseas push

SHANGHAI, Dec 17 (Reuters) - Chinese heavy-duty truck maker Sinotruk (3808.HK) (Hong Kong) Ltd has set up a 50/50 venture with Russian automobile maker Zavod Imeni Lihacheva (ZIL), the official Xinhua news agency said on Monday.

The move is part of Sinotruk's efforts to boost its overseas sales to 30,000 trucks in 2008, Xinhua said. It did not give a comparative figure.

Under an agreement signed earlier in the month, the venture, called HOWO-ZIL, will assemble Sinotruck's HOWO heavy trucks in Russia from the middle of next year, Xinhua said, citing Sinotruk spokesman Guo Huanan.

The Chinese automaker has also sealed a deal to ship 7,600 heavy trucks to Russia through ZIL's network in 2008, including 800 trucks for delivery in January, Xinhua said.

Sinotruk, which was listed in Hong Kong in late November after raising $1.2 billion through an initial public offering of shares, has set up more than 30 service stations in Russia since its entry into the Russian market at the beginning of this year, it added. (Reporting by Fang Yan; Editing by David Holmes)