Friday, September 28 2018 20:48

ArmInfo. The sugar factory in Sevan, which has been idle since 2009, will start production again in November. The founder and director of the plant, Armen Arakelyan, told journalists on September 28 during the press tour in Sevan with  the delegation of the Ministry of Economic Development and  Investments.

120 million drams were invested in the restart of the plant, which  were used for re-equipment, construction and installation works,  renovation, etc. The enterprise will provide up to 80 workplaces,  with 120 thousand drams average wages.

The plant plans to produce sugar by processing and refining the sugar  cane imported from Brazil. The daily production capacity will be  about 60 tons. "The first shipment of raw materials will be delivered  by November 20, and we will restart the production, which will be  directed to the domestic market," he said, noting that export  opportunities are not considered yet, because of inability to compete  on the international market. The entrepreneur plans to sell his  products at a price of 270 drams per kilogram. "We will do everything  possible to get a competitive price, in particular within the  framework of the EEU," A.  Arakelyan stressed.

The Sevan Sugar Factory also counts on state assistance. According to  the head of the enterprise, a draft on the deferment of VAT payment  for raw materials import was submitted to the government for  consideration. "As a result, we will be able to pay VAT not at the  border, but after selling the products," said the businessman.

When asked why the enterprise does not want to use beet, the  entrepreneur noted: "Sugar beet must cost a maximum of 15 drams per  kilogram, so that it would be profitable for us to buy it for  production. And today 1 ton of beets from Russia cost 1 thousand  rubles. We simply do not have such financial opportunities. "

Speaking about the nine-year idleness of enterprise, Arakelyan noted  that the suspension of activities was due to the general situation in  the market, in particular, with the sales volumes. "In 2009, the  prices for cane increased, and beet sugar was imported to Armenia  from neighboring countries several times cheaper, so it was  unreasonable to continue operating the plant," he explained.  Meanwhile, when political changes took place in the country, A.  Arakelyan decided to restart the plant. ''In May of this year we  started implementing the investment program. The atmosphere changed  in the country. There have been no monopolies includingon sugar  market for already 3-4 months. Henceforth, everyone who wants has  gotten the right both to import sugar, and to produce it, "- noted  the entrepreneur.  To note, as of today there is only one sugar  factory operating in Armenia in Shirak region - Akhuryan, which  production capacity is about 320 thousand tons. Sevan sugar plant  will be the second in the republic.  According to the Minister of  Economic Development and Investments Artsvik Minasyan, if it is  possible to launch production on own raw materials, the ministry will  consider the possibilities of export organization.

According to the Statistical Committee of the Republic of Armenia, in  January-August 2018, sugar production in Armenia increased by 19.2%  to 57.9 thousand tons. For the whole of 2017, the volume of sugar  production amounted to 48.6 thousand tons, which is less than the  figure of 10.1% a year ago. At the same time, according to the RA  Customs Service, in 2017 Armenia imported 110.6 thousand tons of  sugar, with a y-o-y growth of 79.8%. In terms of value, sugar imports  increased 2.3-fold to $ 53.6 million. In general, sugar was imported  to Armenia from Brazil (78.2%) and Russia (21.3%), as well as from  Ukraine, Belarus, Colombia, India, France, Italy and Germany.