Avtotor has decided to reduce the investments planned in Kaliningrad

Avtotor has decided to reduce the investments planned in Kaliningrad

Vedomosti – Avtotor Holding vice president Vitali Shipov has announced a 2.5-fold reduction in the investments, concerning the establishment of an automobile cluster in Kaliningrad. Shipov has made the following statement: “ The planned investment of 150 billion rubles has been reduced to 60 billion rubles, with the new plan.”

The general director of the holding Alexander Sorokin has shown the economic situation in the country and the decreasing automobile demand, as the reasons behind the decision.

Sorokin has added: “We had plans to establish factories, which would operate with a production capacity of 150,000 in 2016 and 250,000 in 2018. The plan has changed now. We will establish a factory with an annual production capacity of 100,000 automobiles, at the first stage. Three factories with production capacities of 50,000 each will follow, as the second stage of the plan. The final capacity of the automobile cluster, which will employ 4000 people, is planned as 250,000.”

The planned localisation rates are 30% in 2020 and 50% in 2022, according to Sorokin.

As one may remember, Magna and Avtotor had signed an agreement, proposing the establishment of an automobile cluster in the region in Autumn 2013.