Italian truck company Iveco and Larimar Group have formed an agreement to enter into a joint venture to manufacture commercial vehicles and buses in South Africa.

The company will be based in Pretoria and will be 60% owned by Iveco.

The company will produce 7000 commercial vehicles and 1000 buses each year and would create many employment opportunities by employing around 1000 people.

The production plant will start functioning in the second half of 2013 and will assemble light, meduim and heavy commercial vehicles and buses.