Armenia: Mika cement sustained losses by 15-20% in 2011

Armenia: Mika cement sustained losses by 15-20% in 2011
Published: 21 November 2011

Mika Cement, one of the largest companies producing cement in Armenia, sustained losses by 15-20% in 2011, said Naira Martirosyan the company’s general director.

“This year production of cement reduced due to the decrease of activeness in construction sphere which is conditioned by global economic crisis and reduction of prices for construction material in the world market," she said.

She said that the company is mainly producing for domestic market, and by the end of the year it is planned to reach the production volume to 120-130,000t of cement.

“Our goal is to produce products in demand, including oversees markets, but there is a serious problem with transportation,” said Martirosyan.

Much of the product of Mika Cement is being exported in Russia, particularly for the construction works of Olympic sites in Sochi, but due to the problems with railway transportation, mainly delays, the company cannot export its product.

Mika Cement has operated since 1970 as a structural sub-division of Hrazdan mining-chemical factory which in 1977 was reorganised into Hrazdan cement plant. In 2001 the plant was privatised and renamed Mika Cement CJSC. It is equipped with two kiln lines with a cement capacity of 1.2Mta.