Gaj LLC Accuses Ararat Cement

Gaj LLC has accused the Ararat Cement factory, owned by businessman Gagik Tsarukyan, the head of the Prosperous Armenia faction in the National Assembly of Armenia, of using blackmail to eliminate rival companies from the market.

"Initially, Ararat Cement fought against the import of cement, but now it is striving for more; it seeks to impose duties on raw materials, thereby fighting against its competing local producers as well. It is clear to any impartial observer that the statements made by the company these days and the fierce struggle have one goal: to eliminate competitors from the market by means of political and economic blackmail," the company's Facebook page states.

The announcement notes that Ararat Cement is not fighting to develop local cement production but rather "is fighting to achieve regulatory frameworks that will only benefit itself."

"It is unacceptable that a company holding a dominant position in the cement market, at any cost and at the expense of legal interests of other companies, expects to achieve monopolistic positions through a government policy that only protects it. Our company highly appreciates the current readiness of the state to protect and support local producers and hopes that the proposed laws will be adopted," the statement reads.

Gaj LLC also states that the company is ready to negotiate with Ararat Cement to purchase clinker from it instead of importing it from Iran.

"We are confident that considering its economic interests, Ararat Cement can offer us a lower price for clinker than we currently pay for the imported clinker, its customs clearance, and transportation combined. However, it is clear that such negotiations can only be substantive in the situation that the law is adopted in this form and the routes for importing clinker remain open. We invite all interested parties to our factory to present the entire production process, after which it will finally be clear whether we are a legitimate manufacturer or just 'clinker fillers,' as we are being depicted," the statement adds.

Previously, the management of Ararat Cement sent dismissal notices to 1,200 employees. According to the management's explanation, the costs of cement production are high, and they cannot compete with Iranian cement.

In a conversation with reporters, Gagik Tsarukyan stated that the main reason for the situation at the plant is the position of the permanent commission on economic issues of the National Assembly, which exempts clinkers, the most expensive raw material for cement, from customs duties. He noted that the Armenian government has imposed customs duties on Iranian cement to provide competitive conditions for the local manufacturer, but there is a decision to remove customs duties on clinker imports, which is not favorable for Ararat Cement.

Clinker is the most expensive component in cement production.

However, Tsarukyan later told the employees of Ararat Cement that there would be no layoffs. "Tear up the notices, throw them away," Tsarukyan told the employees.