The Asian Wall Street Journal reports that China’s Qingling Motors Co. has said it has entered an agreement with Japan’s Isuzu Motors Ltd. to establish a joint venture to produce truck engines and engine parts in China.

Qingling, which is 20% owned by Isuzu, said the total investment of the joint venture will be at least 1.5 billion yuan ($185.3 million).

Qingling will have a 50% stake in the company.

The joint venture will produce new models of Isuzu engines in addition to existing ones and will have a target annual production and sales volume of 175,000 engines.

The company didn’t say when it expects the joint venture to begin operations. In July, Isuzu raised its stake in Qingling to 20% from 6.9%.

Isuzu has said stronger ties with the company would be vital for increasing its Chinese market share.