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ARARAT CEMENT PLANT SOLD TO SWISS HOLSIM


MosJan

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ARARAT CEMENT PLANT SOLD TO SWISS HOLSIM

YEREVAN, SEPTEMBER 20, ARMENPRESS: The Armenian state property ministry, the chief state agency, tasked by the government to carry out privatization of still state-owned enterprises, announced on Wednesday the winner of an international tender for privatization of Ararat cement plant. A Swiss Holsim company, the second cement producing world company, was named as the preliminary winner of the tender.

Holsim has plants in some 80 countries, including neighboring Azerbaijan. The tender commission is expected to issue the final verdict in a week after a thorough examination of the company's business plan, but as the state property minister David Vardanian said, the proposals offered by the company are the best ones.

The Swiss company has offered $6 million for the plant, in addition to another $4 million for the surrounding land. It has also pledged $12 million worth investments in the next three years with a commitment to preserve the current 600 work places. To top it all, the company has also promised $6 million to cover the workers' social needs. And if we add some 1.2 billion worth Armenian Drams (AMD), inherited by the company as debts, we shall get a total of $30 million, which exceeds the government's expectations from the deal.

The other bidding company, a Malaysian Ajikavo Group, failed to secure 158,000 AMD in advanced payment. Besides, its proposals to pay $8 million for the plant with vows to invest $100 million, but without mentioning specific dates, and create 2,500 jobs, were regarded as not serious.

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SWISS HOLSIM TAKES OVER ARARAT CEMENT PLANT

YEREVAN, SEPTEMBER 26, ARMENPRESS: The Armenian state property ministry, the chief state agency, tasked by the government to carry out privatization of still state-owned enterprises, announced today the winner of an international tender for privatization of Ararat cement plant. A Swiss Holsim company, the second largest cement producing world company, was named as winner of the tender.

Holsim has plants in some 80 countries, including several former Soviet republics. The tender commission announced today its final verdict after a week of a thorough examination of the company's business plan.

The Swiss company has offered $6 million for the plant, in addition to another $4 million for the surrounding land. It has also pledged $12 million worth investments in the next three years with a commitment to preserve the current 600 work places. To top it all, the company has also promised $6 million to cover the workers' social needs in addition to another committment to pay some 1.2 billion worth Armenian Drams (AMD), inherited by the company as debts.

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REFUSAL OF "HOLSIM" SWISS COMPANY OF ACQUISITION OF "ARARATCEMENT" MAYBE DUE TO PRESSURE FROM OUTSIDE

27.10.2001

 

/PanARMENIAN.Net/ President of Armenia Robert Kocharian supposed refusal of "Holsim" Swiss company of acquisition of "Araratcement" enterprise could be caused by someone's interference. "We will have to find out who put pressure on the investor, as this deal was a very profitable deal," – the President said. As reported by "Arminfo" agency, the press exaggerates the opinion that the pressure was put on the investor by the close circles of the present manager of "Araratcement" plant Aram Sargsian, who is one of the leaders of "Republic" opposition party. It is known that Sargsian was against that deal and counted on the opportunity to privatize the plant by its staff. Sargsian himself called the version not serious as it was not possible to put pressure on a company, the annual turnover of which makes six billion dollars. The manager considers the actions of the company are first of all due to introduction of Euro in Europe beginning with January 1, 2000. In his opinion, Switzerland intends to retain financial resources inside the country to increase the exchange value of the dollar with respect to that of the franc.

 

 

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quote:
Originally posted by MosJan:
It has also pledged $12 million worth investments in the next three years with a commitment to preserve the current 600 work places.


600 workers?? That must be a huge plant if they think keeping so many people doesn't "substantially" curb their profits...
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