EBRD TO ISSUE ARMENIA’S SHEN $5-$6 MLN LOAN TO BUILD DRYWALL PLANT

Interfax News Agency
Russia & CIS Business and Financial Newswire
May 19, 2006 Friday 2:14 PM MSK

The Yerevan-based Shen Concern, Armenia’s largest producer of
construction materials, plans to receive a $5-$6 million loan from the
European Bank for Reconstruction and Development (EBRD), which owns a
blocking stake in the company, for the construction of a drywall plant.

This project will be considered at an EBRD shareholder’s meeting in
London at the end of June, Shen president Samvel Beglarian said.

The project would then be discussed at the Shen annual shareholders
meeting in Yerevan on July 9.

At present, drywall is not produced in Armenia and is imported from
Iran and partially from Russia. Armenia annually imports about 1
million-1.5 million square meters of drywall for a total of $5 million,
Shen said.

To set up production, Shen intends to begin developing a gypsum field
in Armenia. Beglarian expects the EBRD funds will be sufficient for
the development of the field and the construction of the plant.

Shen saw its sales grow a tentative 20%-25%, or by $300,000-$400,000,
in 2005, he said.

Shen Concern was set up in 1995. The EBRD has a 36% stake in the
concern, while the remaining shares are distributed among various
residents of Armenia.