Displaying items by tag: Armenia

Armenia: The Armenian government has announced that it plans to extend the duration of state duties on cement imported from Iran and several other countries until 1 July 2020. The decision was made on the basis of analysis that confirmed an extension of the customs duties was appropriate. The government said that it would continue to monitor the situation.

According to the RA Statistical Committee Armenia produced 0.59Mt of cement in 2019, 8.1% more than in 2018. The RA Customs Service reported that the country imported 0.31Mt in 2019, a year-on-year increase of 70.5%.

Eurasian Economic Union: The Eurasian Economic Union (EEU) produced 12Mt of cement in the first quarter of 2019. Armenia produced 68,000t and imported 47,200t. Belarus produced 0.84Mt, imported 79,500t and exported 0.26Mt. Kyrgyzstan produced 0.35Mt, imported 38,600t and exported 0.15Mt. Kazakhstan produced 1.47Mt, imported 0.11Mt and exported 0.33Mt. Russia produced 9.3Mt, imported 0.18Mt and exported 0.17Mt. Usually production in the first quarter represents 16 – 19% of annual production. Consumption of cement in the EEU region is expected to grow by 2.5% year-on-year in 2019.

Armenia/Iran: The Armenian parliament has approved a tariff of US$29/t on imported cement from Iran. A previous attempt to pass the bill was blocked in April 2019, according to the Armenpress News Agency. During the recent vote construction workers demonstrated outside the parliament building warning that prices could price as a result of the new duty.

Armenia: Tigran Khachatryan, the Minister of Economic Development and Investments, says that the government is considering adding clinker to a list of goods subject to import duties. A tariff of around Euro40/t could be introduced for a year until April 2020, according to the ARMINFO News Agency. This would be similar to proposed duties on imported cement.

The measures are intended to protect local cement production. Khachatryan noted that imports from Iran could be up to a third of the price of locally manufactured cement due to cheaper energy supplies and state subsidies.

Armenia: The Centre for Initiatives to Economic Growth has said that government plans to implement tariffs on imported cement will negatively affect the Armenian construction industry. The research body has sent a letter to the prime minister raising its concerns, according to the ARMINFO News Agency. Local cement producers are reportedly under pressure from Iranian imports. In February 2019 the government said it was planning to impose of rate of around US$45/t on imported cement to protect local producers.

Data from the Statistical Committee of the Republic of Armenia shows that cement production rose by 60% year-on-year to 0.40Mt in the first nine months of 2018 compared to 0.25Mt in the same period in 2017. However, production in September 2018 fell year-on-year by 23% to 44,000t.

Armenia: Tigran Khachatryan, the Minister of Economic Development and Investments, plans to implement tariffs on imported cement to protect local producers. A rate of around US$45/t will be imposed, according to the Arkan News Agency. In a cabinet session Khachatryan said that imports of cement had increased three times in the last year due to a ‘significant’ fall in the price of electricity in neighbouring countries and state subsidies to cement plants. He added that, subsequently, two local cement plants, with a combined production capacity of 2Mt/yr, were unable to sell even a third of their products.

Armenia: Hrazdan Cement has been purchased by GM Holding and is back in operation. According to local media reports the cement plant was bought by a company owned by Arsen Mikaelyan, the chairman of Armbusinessbank, in late 2017. The bankrupt cement producer was previously taken over by its creditor, the VTB Bank (Armenia).

Hrazdan Cement, originally known as Mika Cement, was built in 1970. The company was privatised in 2001 and has had financial problems since 2013. The cement plant has two production lines and a clinker production capacity of 1Mt/yr and a cement production capacity of 1.2Mt/yr.