Thursday, October 4 2018 13:59

ArmInfo.The Sevan sugar plant in Armenia for three years will be exempted from VAT payments for the supply of raw materials and equipment. The decision was made  at the session of the RA government on October 4.  

According to the certificate - justification of the decision, the company began its  activities since 2003, but since 2009 the plant has temporarily  ceased its work. Currently, within the framework of the investment  program, it is planned to modernize the enterprise, as a result of  which daily production volumes will amount to 50-60 tons.  As part of  the modernization program, it is planned to make investments in the  amount of 3.78 billion drams, of which the planned amount for the  purchase of raw materials will be 3.7 billion drams. The project will  create 95 new jobs with an average salary of 129 thousand drams.  Earlier, ArmInfo, citing the founder and director of the plant Armen  Arakelyan, reported that the sugar plant in the Sevan city, which had  been idle since 2009, would again start production in November.

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.

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 including on 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 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.