YEREVAN, June 5. / ARKA /. In two months the Yerevan-based Armenian-Canadian joint venture Grand Tobacco will commission modern Italian equipment worth 2.7 million euros for cutting and processing of tobacco leaves, the venture’s executive director Samvel Sahakyan said today.
He spoke to reporters after President Serzh Sargsyan visited the venture. He said the launch of the new equipment will create 130 new jobs.
The tobacco leaves cutting and processing workshop of the company is able to handle 3.8 tons per hour. According to Sahakyan, the new equipment will help minimize the content of tar and nicotine in cigarettes.
According to Grand Holding, the Armenian co-owner of Grand Tobacco, some $5.8 million were invested in the factory in the first five months this year. This figure is supposed to grow to $9 million until the end of the year.
The money was used on the installment of modern German equipment that can produce 8,000 cigarettes per minute, as well as on installment of Italian packaging lines with a production capacity of 400 packs per minute.
From January to May 2014, the joint venture produced about 402 thousand boxes of cigarettes worth $43.7 million, by 61 % more than the same period in 2013.
"We intend to increase the area under tobacco in the border areas of Armenia and Nagorno-Karabakh, “said Mikael Vardanyan, president of Grand Tobacco.
Last year Grand Holding paid approximately 21.2 billion drams in various taxes. The holding comprises Grand Tobacco, Masis Tabak, Grand Candy confectionery factory, AR TV station and some other enterprises. ($ 1 - 413.71 drams). -0-