CHINA APPLIES DUMPING AGAINST ARMENIAN DIAMOND TOOLS PRODUCERS

YEREVAN, APRIL 27. ARMINFO. The Armenian plant on production of
synthetic diamonds, CJSC “Almast” (“Diamond”) suffers cut-throat
competition with the Chinese producers both in the internal and
foreign markers. Executive Director of the plant Sergey Lazarian has
informed ARMINFO.

He says that it is very difficult to compete with the Chinese as they
go on dumping. Cheap Chinese diamond tools have filled up not only the
Armenian market, but also the markets “Almast” has entered. In
particular, cut-throat competition is observed in the Russian,
European and Iranian markets. The executive director thinks the
Russian market fundamental as the Armenian goods are bought there by
“AvtoVAZ” and other well-known machine building plants. Mktrchyan has
refused from bringing the production volume for last year to conceal
this information from the plant’s rivals. He has just noted that only
30% of the existing production capacities are used. He has added that
the plant works with not large profit and the profit tax in 2004
totaled some 18 mln AMD ($40,000). The plant employs 180 people at the
average wages of 50,000 AMD ($114).

To note, “Almast” was founded in 1954. At present ,69% of its shares
belong to the CJSC International Business Center, and remaining 31% to
the personnel. IBC is a JV with the Russian enterprise
“Rusaviaspeccomplect.” The designed capacity of “Almast” is 50 mln
carats of diamond powder yearly, including of 27 mln carats diamond
tools are produced.