ARMENIAN SYNTHETIC CORUNDUM PRODUCER HALTS OUTPUT DUE TO CRISIS

Interfax
Nov 6 2008
Russia

Vanadzor Chemicals Complex, an Armenian producer of synthetic corundum,
shut down production on November 1 due to the global financial crisis,
general director Alexander Snigirev told Interfax.

Core production of synthetic corundum for jewelry, which was exported
to Thailand, has been shut down because there is no demand, he said.

"The time has come to stop and think about a new development strategy
for the company," Snigirev said.

He said that on November 20 the plant intends to start producing
leucosapphires, for which there is greater market demand at the moment.

These are so-called blue diodes that are used in electronics,
including in production of billboards, screens and other products
for which demand is growing rapidly.

The company had planned to obtain the raw material for their production
locally, but eventually decided to rely on imports, Snigirev said.

Vanadzor Chemicals produced 6,284 kg of synthetic corundum in the
first nine months of 2008, 180% more than in the same period last year.

Zakneftegazstroi Prometei, a company owned by businessman Senik
Gevorkian, acquired 100% of Vanadzor Chemicals in May 1999 for $1.5
million, but the plant never operated continuously. Russia’s Roding
International Limited bought the plant in May 2007 for $25 million.

Snigirev said that the plant has been operating since May 2007,
and also monthly produces 1,000-1,200 tonnes of carbide, which until
recently was exported to India and Saudi Arabia.