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.