About $20mln to be invested in bitumen plant in Armenia

YEREVAN, October 21. /ARKA/. About $20mln are to be invested in the construction of a bitumen plant in Armenia, said Mikhail Bagdasarov, President of the MIKA Limited Company.

Among the founders of the A-bit (Armenian bitumen) plant are three Russian companies with a share of 55%, with the MIKA Limited Company holding the rest 45%.

Bagdasarov said that $3 to $5mln amore are to be invested in the project soon.

“The recoupment of capital investments is expected during the next 3-7 years depending on the price for the product and market situation,” he said.

Bagdasarov said that the plant has been constructed, and the balancing and commissioning work is under way. The equipment has been supplied by the Onix Company (Russia) – it is the company’s first project in Armenia.

The first pilot plant will shortly be started, and the production is most likely to be started next April or May, Bagdasarov said.

He pointed out that A-bit will produce oxidated asphalt and paving bitumen.

“We speak of 40,000 tons of paving bitumen, 40,000 tons of stove fuel and 6,000 tons of diesel fuel a year. Due to minimum consumption of stove fuel in Armenia, it will be exported mainly to European countries,” Bagdasarov said.
 
He also said that the primary product, mazut, will probably be supplied from Russia, Iran and Georgia.

At his earlier meeting with journalists, Bagdasarov pointed out a great demand for bitumen in Armenia.

Armenia imports bitumen from Russia and Ukraine now. To reduce the cost of the product, a decision was made jointly with the Russian side to construct a bitumen plant in Surenavan, Ararat region, Armenia. The new plant will allow Armenia to implement higher-quality road construction programs.–0--