January 15, 2018 – Fort Russ News –
– Ostexperte.de, translated from German by Tom Winter
BMW founds Russian subsidiary in Kaliningrad
Kaliningrad. The German carmaker BMW registered a subsidiary on December 25, 2017, in the Russian exclave Kaliningrad. This was confirmed by Maximilian Kellner, CEO of BMW Group Russia, to the Russian news agency Interfax.
A few months ago, the car company confirmed it would open its own plant in Russia. Since then, negotiations have been going on about suitable production sites. Among the favorites is the Kaliningrad Oblast, said Governor Anton Alichanov. CEO Kellner also said that the founding of the subsidiary was a decisive step in this direction. BMW is considering a “long-term presence” in the region, which could show an “attractive investment climate”.
Since 1999, BMW has been assembling its cars in the Kaliningrad factory of the Russian manufacturer Avtotor. The two companies formed a joint venture in 2013. Now the German carmaker wants to build its own production facility for complete production. According to the media, the company plans to sign a special investment contract (“special investment contract”). The investment in the Kaliningrad Special Economic Zone could amount to several hundred million euros.