Displaying items by tag: Armenia

Armenia: The Centre for Initiatives to Economic Growth has said that government plans to implement tariffs on imported cement will negatively affect the Armenian construction industry. The research body has sent a letter to the prime minister raising its concerns, according to the ARMINFO News Agency. Local cement producers are reportedly under pressure from Iranian imports. In February 2019 the government said it was planning to impose of rate of around US$45/t on imported cement to protect local producers.

Data from the Statistical Committee of the Republic of Armenia shows that cement production rose by 60% year-on-year to 0.40Mt in the first nine months of 2018 compared to 0.25Mt in the same period in 2017. However, production in September 2018 fell year-on-year by 23% to 44,000t.

Armenia: Tigran Khachatryan, the Minister of Economic Development and Investments, plans to implement tariffs on imported cement to protect local producers. A rate of around US$45/t will be imposed, according to the Arkan News Agency. In a cabinet session Khachatryan said that imports of cement had increased three times in the last year due to a ‘significant’ fall in the price of electricity in neighbouring countries and state subsidies to cement plants. He added that, subsequently, two local cement plants, with a combined production capacity of 2Mt/yr, were unable to sell even a third of their products.

Armenia: Hrazdan Cement has been purchased by GM Holding and is back in operation. According to local media reports the cement plant was bought by a company owned by Arsen Mikaelyan, the chairman of Armbusinessbank, in late 2017. The bankrupt cement producer was previously taken over by its creditor, the VTB Bank (Armenia).

Hrazdan Cement, originally known as Mika Cement, was built in 1970. The company was privatised in 2001 and has had financial problems since 2013. The cement plant has two production lines and a clinker production capacity of 1Mt/yr and a cement production capacity of 1.2Mt/yr.

Armenia: Minister of Economy Artsvik Minasyan is hopeful that production will continue at the Hrazdan Cement Company once control of the plant is taken over by its creditor, the VTB Bank (Armenia). Minasyan made the comments to the Arminfo news agency.

In February 2016 the Armenian government approved a draft decision to release Hrazdan Cement from a US$1.06m fine. Former Minister of Economy Karen Chshmaritian announced that the VTB Bank would provide a US$4.6m recovery loan to the plant. The intention was to reach a cement production level of 0.2Mt/yr and create 250 new jobs. In 2015 around 80,000t of cement was produced. Most of this was exported.

Hrazdan Cement, originally known as Mika Cement, was built in 1970. The company was privatised in 2001 and has had financial problems since 2013. The cement plant has two production lines and a clinker production capacity of 1Mt/yr and a cement production capacity of 1.2Mt/yr.

Armenia: As reported by ARMINFO News (Armenia), Armenia cut its cement exports 2.5-fold to 73,000t in 2014, down from 185,200t in 2013. It also increased its imports 2.2-fold, according to the Customs Service of Armenia.

The customs cost of the exported cement fell from US$11.8m in 2013 to US$4.6m in 2014, a factor of 2.6. In 2013, cement exports grew by 36% year-on-year and imports doubled. The Ministry of Economy said that cement exports fell dramatically in 2014 as a new cement plant started up in Rustavi, Georgia. There are now three HeidelbergCement cement plants in Georgia. The country was the key consumer of Armenian cement exports.

In 2014, Armenia imported 7500t of cement for US$1.2m compared to 3400t for US$615,200 in 2013. Some 98% of the country's cement imports come from Iran.

According to the Statistical Service of Armenia, cement production fell by 0.9% in 2014 and by 1.5% in 2013, compared to 3.6% growth in 2012. In 2014, the construction sector shrank by 4.3% to US$913m. In the first quarter of 2015, the construction sector grew by a marginal 0.4%.

Armenia: VTB Bank (Armenia), a 100% subsidiary of Russian VTB Bank, is negotiating the sale of its cement plant in Hrazdan, according to the bank's chief executive Yuri Gusev.

In 2014 the bank provided the plant with a loan that was instrumental in resuming its operation. The plant's products are sold in Iran, Iraq, Europe and the Russian Federation. According to Gusev, VTB Bank (Armenia) wants the plant to continue its operation because the town of Hrazdan is a single-enterprise town. "VTB Bank (Armenia) feels its social responsibility for the fate of its residents," said Gusev. He added that the bank would assist the new owner of the cement plant to attract an international investor.

Armenia: Mika Cement has stopped production at its cement plant until February 2015. It reported to local media that it had produced the necessary volume of cement for sales and had now stopped for annual technical work. The company also said that it had paid the bulk of wage arrears and that the remaining debt will be paid before the end of 2014.

"The company repaid the biggest part of the arrears of wages to workers. In the period of the plant's suspension, the workers will be receiving salary in line with the legislation of the Republic of Armenia," said Mika Cement's press office.

Previously plant director Naira Martirosyan told Arminfo that the plant would produce 100,000t of cement by the end of 2014. The plant resumed production in September 2014 when salary and electric debts were settled. Production volumes at Mika Cement declined following the global economic recession in 2009. Although the company didn't publish financial results in 2013 its debt rose to over US$5.5m in 2012.

Armenia: According to local media, a former Armenian minister of defence, Gagik Melkonyan, has purchased the Mika cement plant.

Armenia: Mikhail Baghdasarov's Mika Cement plant was declared bankrupt in June 2013 and was mortgaged for a loan from VTB Armenia Bank in early 2014, according to local media.

New media reports claim that Russia-based Armenian businessmen are now interested in buying the plant. The head of the plant's technical department, Serob Sharoyan, is their representative in Armenia. It is rumoured that Sharoyan will be appointed as director of Mika Cement.

VTB Armenia Bank neither confirmed nor refuted the information about the plant sale.

Armenia: The National Statistical Service of Armenia has reported that cement production dropped by 3.5% year-on-year for the first six months of 2013, from 186,300t to 180,000t. Exports doubled in the same period to 92,000t from 46,000t. A crisis in construction in Armenia has been blamed for the fall in production, whilst growth in neighbouring Georgia has been linked with the growth in exports.

"Domestic demand is also low, so we are working at low capacity. We are going to suspend our work shortly as there is no demand for cement in winter," said Naira Martirosyan, CEO of Mika Cement, one of Armenia's leading producers. She added that Mika Cement has not exported cement since 2010 due to growing energy and transportation costs.

In 2011 Armenia was reported to have exported 98,000t compared to 34,000t in 2010. In 2011 a 13.4% drop in construction to some 422,200t was also noted.