Interfax citing Mr Gennady Shcherbakov deputy Prime Minister of the Kaliningrad region government as saying that CJSC Avtotor, the BMW concern and the Russian Economic Development Ministry plan to sign a cooperation agreement in the first quarter of this year.

He said that "The text of this agreement is already prepared. There are plans for the sides to sign it in the first quarter. Only after that will a general cooperation agreement between Avtotor and BMW be signed."

Mr Shcherbakov said the cooperation agreements involve an investment project for Avtotor to construct a BMW production plant with welding, assembly and painting cycles. The facility will be able to produce 55,000 BMW 1,3 and 5 models by 2014 and 80,000 by 2016.

Investments in the project will come to EUR 200 million to EUR 50 million from Avtotor, 50 million from BMW and roughly 100 million from loan resources.

In 2011, 17,000 BMW vehicles were assembled at Avtotor. For 2012, there are plans to assemble 20,000 BMWs at the plant.

(Sourced from Interfax)