Hrazdan cement plant’s debt reaches 509 million drams

YEREVAN, April 3. / ARKA /. The Hrazdan cement plant has an outstanding debt of 509 million drams to tax authorities, the plant’s chief manager Naira Martirosyan told a news conference today. According to her, the basic debt is 141 million drams, while 367 million drams are penalties for delay in payment of basic taxes.

She said in 2008-2014 the plant paid 2.9 billion drams in various taxes, however, because of the protracted crisis, problems with exports and a sharp decline in domestic construction the plant is incurring serious losses being unable to pay the debt. She said the plant asked the authorities to restructure the debt, but the request was declined.

She said if this policy continues it may lead to closure of the plant, which is currently able to resume production in its entirety if the debt is restructured. She said Armenia has local raw materials and good equipment to produce high quality and competitive products.

The Hrazdan cement plant was commissioned in 1970. It sold its products both at home and in Georgia and Russia. In the 90s the plant stood idle. In 2001 it was privatized by the owner of MIKA Armenia Mikhail Bagdasarov. Later it was sold to VTB Bank (Armenia) as repayment of debt.

The plant resumed operation in July 2014 thanks to a loan from VTB Bank (Armenia). The plant produced about 10 brands of Portland cement. Located in the town of Hrazdan in Kotayk region it can produce up to 1.2 million tons of cement a year and one million ton of clinker. ($ 1 - 473.05 drams). 0-