Russian automaker Avtotor reportedly is joining with Magna to establish a manufacturing complex that includes a cluster of plants that will make cars and components in the Kaliningrad region, the centre of Russian vehicle production.
Total capacity for the multi-production facility, which will be managed by the two companies, is expected to reach 350,000 cars a year, WardsAuto.com reported.
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A draft of the project is awaiting approval by the Russian government, the report said, citing Avtotor chairman Vladimir Scherbakov.
The manufacturing complex is expected to comprise 21 new plants, six of which will produce cars, while the remaining 15 will specialise in parts.
Avtotor is hoping to set up joint ventures with its existing partners, including BMW, General Motors and Kia, for the car factories. Negotiations with a number of potential participants in the cluster project are underway. Avtotor will hold a controlling stake in the project at the initial stage.
Total investment is estimated at RUB113bn (US$3.5bn), of which about 20%-25% will be funded by Avtotor and its partners, while loans and state money will account for the rest, Scherbakov was quoted as saying.
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By GlobalDataThe first stage, which is scheduled for completion by 1 January, 2016, will see the construction of 14 factories, with a combined total capacity of 200,000 cars and auto parts annually. The remaining nine plants should be built by 2018.
“Each plant will be established as a separate joint venture with a car or autoparts manufacturer,” Scherbakov said.
In addition to the manufacturing complex, which is expected to create 2,000 new jobs, the cluster project involves the establishment of a new town close to Kaliningrad for 50,000 residents.
Most of the cars and parts manufactured at the cluster complex will be sold in Russia, with exports to the European Union, Africa and Asia expected to account for up to 20%, Scherbakov said.
Avtotor currently produces 30 different models. In 2011, the company built about 222,000 units, which accounted for more than 15% of all Russian-made cars, WardsAuto.com said.
