Canadian-based auto parts manufacturer Magna International Inc. is partnering with Russian car maker Avtotor Holding Ltd. to develop an automobile manufacturing cluster in the Kaliningrad region.
Aurora, Ont.-based Magna and Avtotor will set up as many as six full-cycle vehicle-assembly operations for different auto makers and up to 15 automotive-components plants, the companies said in a news release.
The parts plants will meet Avtotor's needs, and may also supply other Russian automotive firms as well as export customers. The final production capacity is expected to increase in phases, with the potential to reach up to 250,000 vehicles per year by 2018.
The Russian automobile market is a bright spot in Europe, with sales expected to return to pre-recession levels and approach three million cars this year. Russia is expected to surpass Germany as Europe's largest auto market by 2014.