Kazakhstan and Russia set up a joint venture to construct a tire-producing plant in the Central Asian country, Kazakhstan’s prime minister’s administration reported on his official website.

The plant will initially have an annual capacity of 3.5 million tires with a further increase to 9 million. It will be built in the city of Saran, in Kazakhstan. Forty percent of production is destined for export.

The project envisages the construction to be complete by the end of 2022. Investment is estimated at 125 billion tenge ($293 million).