Sberbank, Avtotor to Invest RUB20 Billion in CKD Car Assembly

Under the agreement, the parties plan to implement joint investment projects to create full-cycle production facilities with a capacity of 300 thousand cars per year. Sberbank and Avtotor also agreed to cooperate in the creation of logitics facilities, staff training and housing construction for Avtotor’s employees.
Sberbank will also consult Avtotor and arrange its borrowings on the capital market. The bank will provide guarantees worth up to $200 million (€140 million).

Avtotor plans to shift the current SKD production of BMW vehicles in Kaniningrad to a new CKD assembly plant by 2014. The facility is planned to reach full capacity of 80 thousand vehicles by 2015. Total investment in the project will amount to €200 million, of which €50 million will be financed by both BMW and Avtotor, and €100 million from credits.

Currently Avtotor produces more than 25 different models for the world's leading manufacturers, including BMW, General Motors and Kia.