Avtotor, BMW plan to sign cooperation agreement in Q1 2012
KALININGRAD. Jan 25 (Interfax) - CJSC Avtotor (Kaliningrad), the BMW concern and the Russian Economic Development Ministry plan to sign a cooperation agreement in the first quarter of this year, Deputy Prime Minister of the Kaliningrad region's government Gennady Shcherbakov said at a meeting of the investment promotion council on Wednesday.
"The text of this agreement is already prepared. There are plans for the sides to sign it in the first quarter. Only after that will a general cooperation agreement between Avtotor and BMW be signed," he said.
The cooperation agreements involve an investment project for Avtotor to construct a BMW production plant with welding, assembly and painting cycles. The facility will be able to produce 55,000 BMW 1,3 and 5 models by 2014 and 80,000 by 2016, Shcherbakov said.
Investments in the project will come to 200 million euro - 50 million from Avtotor, 50 million from BMW, and roughly 100 million from loan resources.
In 2011, 17,000 BMW vehicles were assembled at Avtotor. For 2012, there are plans to assemble 20,000 BMWs at the plant.
At the moment, Avtotor produces series 3, 5 and 7 BMWs, as well as the X1, X3, X5 and X6 BMW crossovers. The BMW production line includes 339 highly trained employees.
Avtotor also produces the Kia Sportage, Magentis, Carens, Cee'd, Mohave and Rio, the GM DAT Chevrolet Aveo, Chevrolet Lacetti and Chevrolet Epica, the GM Chevrolet Tahoe, Chevrolet Trail Blazer, as well as the Cadillac Escalade, CTS, SRX, Cadillac STS, and the Astra and Zafira models from the Opel concern.
Avtotor's production capacities are located at three sites. The company plans to invest around 800 million euro in expanding its production capacities by 2016.