Avtotor will build a new plant for BMW or Hyundai/Kia

Avtotor will build a new plant for BMW or Hyundai/Kia

Autostat.- Avtotor will build a factory in Kaliningrad with an annual production capacity of 50,000 cars. The plant is planned to commence operations in 2020. The relevant statement has been made by the general director Alexander Sorokin. The contract for the project will be signed on 25 July.

The new plant will be located on 32-hectares premises within the production site of the enterprise. There will be two universal assembly lines in the facility, which will manufacture 25,000 vehicles per year each. Welding and paint shops are also planned to be created in the factory until 2024.

The total project capacity of the holding will remain at 250,000 automobiles per year and already manufactured models will be transferred to the new lines when new versions are launched, as explained by Sorokin. According to him, the automobiles of the main partners of Avtotor may roll off the conveyors of the new facility: German BMW or Korean Hyundai/Kia. The holding has not revealed the construction partner of the new plant yet, on the other hand. Sorokin is of the opinion that the partner will be identified, once the manufacturers bring out their production plans for year 2021 and beyond.

As noted, the facility will be built to fulfill the conditions of a SPIC, which was signed between Avtotor and the Russian Ministry of Industry and Commerce in the beginning of July. Deepening of technological conversions in car production, the organisation of the full-scale production of the entire model range including body welding and painting, the expansion of localisation and increasing the added value form the essence of the project. Engineering, IT and training centres are planned to be created within the framework of the project, which will push the engineering and technological support of production to a new level, enabling the digitalisation of production management and the preparation of highly qualified team of staff for the upgraded production level. The signature of the SPIC will be a new stage in the establishement of an automotive cluster in Kaliningrad region.

A new line for body welding has been installed in Kaliningrad plant, which has a capacity of 25,000 units per year. Approximately 10 million euros have been invested in the modernisation and expansion of production in the enterprise since the turn of the year in total, particularly in the construction of the new welding line.

As one may remember, 203,218 automobiles have been manufactured in Avtotor in 2018, which is equivalent to a 41% year-on-year growth.The project targets have been achieved in all key areas for the first time in 25 years. A speed record has been broken in the facility, with a new automobile rolling off the conveyor in every 60 seconds.