"SHEN-CONCERN" CJSC INTENDS TO ATTRACT CREDIT FROM EUROBANK TO SUM OF $5-6 MLN

Yerevan, May 20. ArmInfo. The "Shen-Concern" CJSC intends to attract credit from the European Bank for Reconstruction and Development to the sum of $5-6 mln to build a plant in Armenia for plasterboard production, the Concern's President Samvel Beglaryan told ArmInfo.

According to him, plasterboard is not produced in Armenia at present and is imported mainly from Iran and partially from Russia. According to Beglaryan's assessments, Armenia imports about 1-1,5 mln sq.m of plasterboard per year to the sum of $5 mln. To organize this production, "Shen" intends to start development of a plaster deposit in Armenia. As to Beglaryan's estimations, the Eurobank's credit means will be enough to operate the quarry and to build a plant. This project will be probably considered at the Eurobank's general meeting of shareholders to be held in London June 20-26, 2006. Then the project will be discussed at the regular annual meeting of the "Shen" shareholders in Yerevan on July 9. According to the President of "Shen", the year 2005 was successful for the Company in the whole, as compared to the previous year. Thus, according to preliminary estimations, the volumes of sales increased by 20-25% or by $300-400 thsd. as compared to 2004.

Besides, Samvel beglarian stated that "Shen-Concern" has attracted 1.250 million euros to construction of a new plant producing color cement blocks in Yerevan. The plan will be unique in the South Caucasus, he said.

He said the concern gained the sum invested in the construction from a deal with the European Bank for Reconstruction and Development. Specifically, EBRD acquired 24% of the enterprise's shares for 850,000 euros at the end of 2004, and another 15% shares for 400,000 euros in 2005, hereby becoming the holder of 36% stake in "Shen-Concern." The plant was put into operation in March 2006. The production capacity of the plant is 13,000 standard cement blocks per 8-hour shift. The plant capacity fully satisfies the needs of the internal market, Beglaryan says. The plant can produce 17 types of cement products, specifically, borders for highways and streets, color blocks etc. He assures that European special hydraulic-press technology, which is unique in the South Caucasus, is used in the production of the cement blocks. It secures high atmosphere resistance and durability. The new plant has 30 employees, but the growing production will lead to opening of new jobs. The average monthly wages is some 100,000 AMD. At present the plant uses 40% of its capacities because of some technical problems with adjustment, however, these problems will be settled in a month, Beglaryan believes.

According to Beglarian, the "Shen-Concern" CJSC intends to expand its presence in the Georgian market of building materials in 2006.

According to him, it has been two year already as the "Shen"-produced paints, which are distinguished by high quality compared to the now-used Turkish analogues, are supplied to the Georgian market. The Concern is going to supply colored concrete blocks and borders to Georgia since 2006. Beglaryan noted that the Georgia's deputy Minister for Economic Development, Genrikh Mouradyan, has recently visited Yerevan and the newly-built "Shen" plant for concrete blocks production. Mouradyan came interested in the Armenian production as large-scale road-building is carried out in Georgia. A preliminary agreement was reached during the visit concerning delivery of the whole assortment of the plant's production to the Georgian market. The management of "Shen" will visit Georgia in the midst of July, 2006, to sign contracts. The transport scheme of supplies and the price policy are discussed at present. Other more distant countries are also interested in the Armenian products. Delivery proposals came from Rumania and the United Arab Emirates, in particular, Beglaryan said.

To be noted, the "Shen-Concern" CJSC was created in 1995. Thirty-six percents of the Concerns' shares belong to the EBRD, the rest part - to the Armenia's residents. The Concern owns a network of firm shops, where 114 employees are engaged.