Mazda Motor Corporation and Russian partner OJSC Sollers announced their joint venture production company, Mazda Sollers Manufacturing Rus (MSMR), has signed a special investment contract with the government of the Russian Federation regarding the establishment of an engine factory at its production facility in Vladivostok, in the Primorsky region of Russia’s Far Eastern Federal District.

The engine factory will have capacity of 50,000 units per year with production expected to begin in 2018.

The Russian government has offered support measures for its establishment, valid until 2023. Details of the measures “will be decided moving forward”, the two parties said in a statement.

MSMR, which began operations in October 2012, currently assembles Mazda’s CX-5 and 6. It has produced over 100,000 units for sale throughout Russia.

“Mazda and Sollers will continue advancing their collaboration, making the most of Mazda’s vehicle manufacturing prowess and Sollers’ infrastructure and team to contribute to the Russian automobile industry,” the statement added.