Friday, September 2 2016 16:29

ArmInfo. Armenian government approved additional investment program of Armoil Company, which is constructing oil refinery in Armenia.

According to Economy Minister Artsvik Minasyan the investment program of the company was approved at the Government's session on December 24, 2015 and the company was exempted from VAT for 3 years for the imported equipment. At the same time according to initial plan 102.2 mln AMD was to be invested in purchase and delivery of equipment to Armenia. However, now it becomes clear that the amounts will be increased several-fold to 746.6 mln AMD. 150 people will get permanent job in the plant with an average salary of 200 thousand AMD in 2016, 220 thousand AMD in 2017 and 250 thousand AMD in2018. It is planned to finish the program within three years.

Earlier in an interview to ArmInfo Alfred Abedi, Managing Director of "Armoil" CJSC, noted that the main goal of the company is production of oil products <Made in Armenia> label. The investment program will be implemented in three stages, with the total amount of investments to be $35mln. The first stage of the project envisages construction of the oil refinery in Yeghvard. It will be equipped with German, Italian and Iranian machinery.  According to the business plan, the production capacities of the enterprise will initially be 15 thsd tons of engine oil and 6 thsd tons of tar oil per annum.  In the future the plant will have an opportunity to process waste oil and use it as a raw material. This will help to prevent environment pollution. The plant will have a unique specialized laboratory in the region, which will be equipped with up-to-date facilities for testing and examining the compliance of products with international standards. The company seeks to produce oil products for 100 million drams for the domestic market alone. The plant will occupy an area 5 thsd sq m with possible further enlargement to 15 thsd sq m. It will also have underground and ground-mounted storage facilities to store 4 thsd tons pf diesel, 2 tons of bitumen, and 2-3 thsd tons of raw materials, as well as 20 thsd tons of finished products.  The office buildings will be build on the site, while the storages, laboratories and other premises will imported as fabricated part and assembled on the site. Nearly 15 mln USD will be invested in the first stage of the project.