Armenian-American metallurgical plant to "move" from Yeraskh to Ararat

YEREVAN, January 12. /ARKA/. The Armenian government will grant AMD 3.5 billion loan to GTB Steel LLC, which plans to build a smelter in the village of Ararat. The loan will be provided with an annual interest rate of 8% repayable in 4 years.

The Armenian-American company is said to have invested about AMD 2 bln. in the construction of the smelter in the village of Yeraskh, but had to stop it as the smelter would come under regular fire from Azerbaijani military outposts located on a hill several hundred meters away in Nakhichevan exclave..

In December the government allowed GTB Steel LLC to relocate the plant to the Ararat village in the same name province, where it was given an area of 89,000 square meters.

The initial investments in the project reportedly amount to about $29.9 million. The joint company said it would create 500 jobs once the smelter is built. The annual turnover of the enterprise is said to amount to $200-250 mln.

According to earlier reports, the American investors were to invest $70 million in the project. -0-