ArmInfo. The Armenian government is ready to consider the issue of extending the customs duty on imported clinker for cement production. The Minister of Economic Development and Investments of the Republic of Armenia Tigran Khachatryan stated this from the rostrum of the National Assembly of the Republic of Armenia in the first reading introducing amendments to the laws "On State Duty" and "On Alerting Activities".
As the Minister noted, following the results of discussions in Parliament, it is possible that by the second reading clinker will also be on the list of goods subject to state duty. As for cement, it is proposed for a period of one year - until April 2020, to establish a state fee in the amount of 22 thousand drams for each ton of imported cement. This, according to Tigran Khachatryan, on the one hand, is connected with possible price changes for these goods in neighboring markets, and on the other hand, with the possibilities of modernizing domestic enterprises and reducing the cost of production. Having established a new duty, the minister continued, equal conditions will be created on the market for producers and importers of cheaper cement from neighboring countries, first of all, from Iran. "We cannot allow the closure of our enterprises. They need the support of the state," the minister explained. At the same time, he noted that imports are growing much faster than local production. So, in 2018, local production grew by 53%, and imports - 3.5-fold, that is, imports are growing much faster. Of the 680 thousand tons in the Armenian market, 512 thousand were Armenian cement, 168 thousand - imported. Tigran Khachatryan also said that according to the Ministry's research, the average cost of cement from local enterprises is 41-42 thousand drams per ton, or about $ 85- $ 90. At the same time, cement in Iran is more than four times cheaper - $ 15- $ 20. Redeployment to Armenia is estimated at $ 15 per ton. As a result, on the Iranian border, in Meghri, Iranian cement costs only $ 30, or about 15 thousand drams. Iranian cement plants are helped by two factors. First, the country has very cheap gas, which can be up to half the cost of cement. Secondly, the Iranian government subsidizes local producers. According to various estimates, in 2017 the state spent $ 168 million on this, the minister said. So that Armenian factories could withstand such competition, it is proposed to protect them with a duty. Thus, as the Minister noted, Armenian enterprises will be able to withstand competition.
It should be noted that according to the data of the Statistical Committee of the Republic of Armenia, in September 2018 cement production in Armenia decreased by 23.34% and amounted to 44 thousand tons. In total, 401 thousand tons of cement were produced in January-September 2018 against 251 thousand tons in January-September 2017.
To recall that in Armenia there are two cement plants functioning - Ararat and Hrazdan and gadz plant, also producing cement.