Mikhail Baghdasarov forecasts drop in cement prices in Armenia

PanARMENIAN.Net - President of Mika-Cement cjsc Mikhail Baghdasarov forecasts drop in cement prices in Armenia after modernization of the company owned Hrazdan plant.

“The price may drop after modernization,” Baghdasarov told a press conference in Yerevan.

He said that German specialists are presently completing modernization of the packing line. This new line will be presented at the 40th anniversary of the plant, and the first stage of modernization will worth $4 mln. (1,350 mln euros and $2mln.), according to him.

Within the next stage, it is planned to change ovens, with dimensions making 70-80 meters. Dry method of production will be used in it which will bring to reduction of cost value on account of water.

Baghdasarov noted that Hrazdan plant is old; the dimensions of the oven makes 185 meter, and due to that too much gas is consumed.

He also said that if now the price for cement exceeds more than $100 per ton, after the upgrade its cost value will total $40, however they will have to fix the cost value at $70, so that to pay out credits. In this respect, the President noted that after modernization of the plant the price for cement will be lower, but “not so low, as after we cover credits.”

Baghdasarov also touched upon construction volume in Armenia, which is still far from that of pre-crisis years. He expressed hope that cement sales volume will increase in connection with new highways construction in Georgia on concrete base, and possible construction of new NPP in Armenia.