OAO Severstal-Avto will start assembling the Ssangyong Rexton sports utility vehicle on Thursday, Dow-Jones reported.

Severstal-Avto reportedly said it invested US$70 million in the assembly project, which included buying and modernising a plant and sending staff to South Korea for training.

The news agency said the Rexton would be sold with both petrol and diesel engines in Russia at retail prices ranginf between US$30,900 and $40,990.