Russia's Zavolzhsky Engine Plant has signed a contract with China's Naveco company to supply 3,000 engines to China-Italy's Naveco, the company's sales director Alexander Lbov told reporters at the Moscow international motor show on Friday.

A Prime-Tass report noted that ZMZ is based in Zavolzhye in the Nizhny Novgorod Region and added that, under a 12-month contract, the engines will be used in Iveco Daily buses assembled in China.

The contract is the first with the Chinese company, Lbov said.

Currently ZMZ is testing several Naveco models with engines produced at ZMZ.

Prime-Tass added that Naveco is a joint venture created by Italy's Iveco and China's Nanco automobile corporation - the latter now owns UK carmaker Rover.