TWO FOLD INCREASE IN GAS PRICE TO MAKE CEMENT EXPORT FROM ARMENIA IMPOSSIBLE
Noyan Tapan
Mar 07 2006
YEREVAN, MARCH 7, NOYAN TAPAN. In case of a twofold increase in the
gas price, the cement production cost will increase by 15% in Armenia,
which will make it impossible to export this building material from
the country – under conditions of a high transportation cost. Artur
Ashughian, Head of the Nature Use and Mining Industry Department of
the RA Ministry of Trade and Economic Development, stated this at
the March 7 press conference.
According to him, in case of the current gas price of 54 USD for 1,000,
gas accounts for 30-42% of the cost of cement produced in Armenia,
but it will account for 52-60% as a result of the gas price increase
to 110 USD.
Naira Martirosian, Director General of Mika Cement company, stated
previously that the company operated with a 5% profitability in
late 2005.