SITRONICS TO INVEST $10 MLN IN ARMENIAN FREE ECONOMIC ZONE

Interfax
Feb 2 2012
Russia

CJSC Sitronics Armenia will invest $10 million in 2012-2014 in a free
economic zone in Armenia, Armenian Economy Minister Tigran Davtyan
said as he presented the company’s business plan to the government.

The government on Thursday approved the establishment of a free
economic zone at CJSC RAO Mars and the Yerevan Computer Research and
Development Institute (YCRDI) and confirmed Sitronics Armenia as the
organizer of the zone and its managing company.

The zone will remain in force for 10 years. The minister said that an
agreement will soon be signed between the government and the company,
after which Sitronics Armenia will undertake to launch the zone within
six months.

Production with the newest technologies of electronics will be set
up at RAO Mars and science and research work will be carried out at
YCRDI, Davtyan said.

When drafting the business plan, SitronicsArmenia and the government
held talks with foreign investors, the minister said. Six or seven
well-known companies have already shown an interest in the project.

Additional major investment is therefore anticipated, he said.

Free economic zone participants will not pay any taxes other than
income tax for employees, Davtyan said. The products manufactured
will be exported, the minister added.

Sitronics Armenia was established in September 2009 by OJSC Sitronics
(RTS: SITR), an AFK Sistema (RTS: AFKS)structure. Armenia transferred
RAO Mars and YCRDI to Russia in 2003 as a debt payment. They are
currently part of AFK Sistema.

From: Emil Lazarian | Ararat NewsPress