“SHEN-CONCERN” CJSC INTENDS TO ATTRACT CREDIT FROM EUROBANK TO SUM OF
$5-6 MLN Yerevan, May 20. ArmInfo. The “Shen-Concern” CJSC intends to
attract credit from the European Bank for Reconstruction and
Development to the sum of $5-6 mln to build a plant in Armenia for
plasterboard production, the Concern’s President Samvel Beglaryan told
ArmInfo.
According to him, plasterboard is not produced in Armenia at present
and is imported mainly from Iran and partially from Russia. According
to Beglaryan’s assessments, Armenia imports about 1-1,5 mln sq.m of
plasterboard per year to the sum of $5 mln. To organize this
production, “Shen” intends to start development of a plaster deposit
in Armenia. As to Beglaryan’s estimations, the Eurobank’s credit means
will be enough to operate the quarry and to build a plant. This
project will be probably considered at the Eurobank’s general meeting
of shareholders to be held in London June 20-26, 2006. Then the
project will be discussed at the regular annual meeting of the “Shen”
shareholders in Yerevan on July 9. According to the President of
“Shen”, the year 2005 was successful for the Company in the whole, as
compared to the previous year. Thus, according to preliminary
estimations, the volumes of sales increased by 20-25% or by $300-400
thsd. as compared to 2004.
Besides, Samvel beglarian stated that “Shen-Concern” has attracted
1.250 million euros to construction of a new plant producing color
cement blocks in Yerevan. The plan will be unique in the South
Caucasus, he said.
He said the concern gained the sum invested in the construction from a
deal with the European Bank for Reconstruction and
Development. Specifically, EBRD acquired 24% of the enterprise’s
shares for 850,000 euros at the end of 2004, and another 15% shares
for 400,000 euros in 2005, hereby becoming the holder of 36% stake in
“Shen-Concern.” The plant was put into operation in March 2006. The
production capacity of the plant is 13,000 standard cement blocks per
8-hour shift. The plant capacity fully satisfies the needs of the
internal market, Beglaryan says. The plant can produce 17 types of
cement products, specifically, borders for highways and streets, color
blocks etc. He assures that European special hydraulic-press
technology, which is unique in the South Caucasus, is used in the
production of the cement blocks. It secures high atmosphere resistance
and durability. The new plant has 30 employees, but the growing
production will lead to opening of new jobs. The average monthly wages
is some 100,000 AMD. At present the plant uses 40% of its capacities
because of some technical problems with adjustment, however, these
problems will be settled in a month, Beglaryan believes.
According to Beglarian, the “Shen-Concern” CJSC intends to expand its
presence in the Georgian market of building materials in 2006.
According to him, it has been two year already as the “Shen”-produced
paints, which are distinguished by high quality compared to the
now-used Turkish analogues, are supplied to the Georgian market. The
Concern is going to supply colored concrete blocks and borders to
Georgia since 2006. Beglaryan noted that the Georgia’s deputy Minister
for Economic Development, Genrikh Mouradyan, has recently visited
Yerevan and the newly-built “Shen” plant for concrete blocks
production. Mouradyan came interested in the Armenian production as
large-scale road-building is carried out in Georgia. A preliminary
agreement was reached during the visit concerning delivery of the
whole assortment of the plant’s production to the Georgian market. The
management of “Shen” will visit Georgia in the midst of July, 2006, to
sign contracts. The transport scheme of supplies and the price policy
are discussed at present. Other more distant countries are also
interested in the Armenian products. Delivery proposals came from
Rumania and the United Arab Emirates, in particular, Beglaryan said.
To be noted, the “Shen-Concern” CJSC was created in 1995. Thirty-six
percents of the Concerns’ shares belong to the EBRD, the rest part –
to the Armenia’s residents. The Concern owns a network of firm shops,
where 114 employees are engaged.
From: Emil Lazarian | Ararat NewsPress
