South Korean sport utility vehicle (SUV) specialist Ssangyong Motor on Monday was reported to have said it had agreed to supply Russia's Severstal-Avto with 1.32 trillion won ($US1.38bn) worth of vehicle component kits.

Ssangyong, owned by China's Shanghai Automotive Industry Corp., said in a filing to the Korea Exchange cited by Reuters that it would sell partially-completed car kits for its Kyron and Actyon SUVs to Severstal-Avto from 2007 to 2011.

Ssangyong reportedly will deliver up to 7,000 units next year, 15,000 vehicles in 2008 and 17,000 in 2009. It will deliver 20,000 in 2010 and 2011, respectively.

Reuters said the company targets an expansion of its market share to around 10% in Russia's imported SUV market via the deal.

Last year, Ssangyong sold 1,569 SUVs taking a share of 1.14% of Russia's imported SUV market, a company spokesman told the news agency.

Last week Severstal-Avto signed an agreement with Ssangyong to assemble the Kyron from March 2007, the report said.

Reuters noted that Severstal-Avto already produces Ssangyong's Rexton SUV and plans to produce 20,000 Kyron at its plant in the oil-rich republic of Tatarstan next year, amid strong demand for off-road vehicles in Russia.