ArmInfo. The State will allocate a territory in the second largest city of Armenia, Gyumri to an investor from Yerevan for construction of a new textile plant. The relevant decision was made at the governmental session on February 4. As Head of State Property Management Department Arman Sahakyan noted in his report, the area will be allocated for a symbolic cost at 1 thousand AMD. Sasstex Company is the investor, which plans to invest 2.3 mln EUR in this textile production within a year.
According to ArmInfo's data, Sasstex Company belongs to WKS Armenia company, which is a subsidiary company of large German WKS Textile Solutions, part of German Huniel group (textile and engineering). WKS Armenia branches operate in Yerevan, Vanadzor and Amasia. Company has been operating in Armenia since 2009. In his interview to ArmInfo in 2010 Christian Gelici, German-Armenian WKS Armenia Director noted that the company operates in Armenia as a tolling company with further export of the ready products. According to the WKS Armenia Director, the company is producing uniforms made of expensive raw materials imported from Germany. In fact, the production is too expensive for the local market. However, the company planned to open the first WKS Armenia brand fashion shop, which did not happen. "We want to offer our citizens high quality cloths and follow the global fashion trends", he noted. In experts' opinion, territory for the plant in Gyumri for a symbolic payment was allocated within the governmental program of assistance to renovation of consumer goods manufacturing in Armenia. Making a deal with a large and reach WKS Armenia was possibly not reasonable, so the investor consummated the deal on Sasstex.