AvtoVAZ plans to spend US$500m to build a car plant in Kazakhstan with capacity for 120,000 cars a year.

According to the AvtoVAZ press centre, a memorandum on strategic partnership was signed recently in Ust-Kamenogorsk, Kazakhstan).

Construction is set to begin in 2012.

The first stage of production (90,000 cars) is expected to start in 2015 with asecond stage (300,000 cars) beginning in 2017.

The cars produced in Kazakhstan will be sold in Central Asia, Trans-Caucasus, Siberia and far eastern districts of Russia.