German automaker BMW has completed its plans to commence the construction of a large plant in the Kaliningrad exclave in Russia. This location is close to the Polish border, this news was announced by the Rzeczpospolita daily.

 According to the reports, the construction of the factory will cost at least EUR 50 million.

The reports also indicate that the plant will be a fully-fledged production factory rather than an assembly facility.

BMW has been assembling it's 3, 5 and 7 series models as well as X1, X3, X4, X5 and X6 vehicles in Kaliningrad since 1999, Rzeczpospolita reported.

The daily also reported that the German automaker was initially considering three locations for the plant. They are the Moscow region, St. Petersburg, and Kaliningrad. It added that in January, the German firm has successfully registered its BMW Rusland Automotive Company in Kaliningrad.

The authorities in Kaliningrad recognize the automotive industry as an important sector in its economy. And from the reports by Rzeczpospolita, many companies have set up assembly plants there due to the exclave’s proximity to the EU border.