Russian car maker Avtotor Holding will sign on Thursday a general agreement of cooperation with Canadian car giant Magna International Europe in order to create an automobile 'cluster' in the Kaliningrad Region, Avtotor Holding said in a statement.

The production capacity of the cluster will amount to no less than 250,000 cars annually with an annual output worth over RUB670bn, Prime News reported.

The first line of the cluster will be operating by 2016. On the whole, the complex will comprise 21 production units, including six car plants and 15 component facilities. Total investments in the project are estimated at about RUB90bn.

The cluster will create up to 20,000 jobs in the region, and it will unite new car plants and joint ventures handling the manufacture of components.

Magna will be in charge of the engineering aspects of the project.

Avtotor assembles cars from imported components for automakers including BMW, General Motors, Kia and Opel.