Bus Manufacturing to be Established in Armenia

A bus manufacturing plant designed for the Eurasian Economic Union market will be established in Armenia as part of a joint project between the Korean company Youngsan and the Armenian National Interest Fund. The new investment project is estimated to be worth $4.4 million.

Armenpress interviewed David Papazyan, the executive director of the Armenian National Interest Fund, on this topic. 'A bus assembly center will be established. The buses will be intended for the Eurasian Economic Union market. There is a very specific targeting. Armenia is becoming a favorable country for international enterprises. They are not the only ones with whom discussions are underway to use Armenia as a manufacturing hub for exporting products to the EEU countries,' Papazyan said.

The initiative has been led by the Korean company since last year. Through remote work, the Armenian National Interest Fund managed to reach an agreement. 'The fund will co-finance a part of the creation of this factory from the state budget and will hold a stake lower than 50%, within the range of 40-49%,' Papazyan noted.

The total investment volume is $4.4 million, of which about $1 million will be financed by the Armenian National Interest Fund, just over $1 million by the foreign investor, and the remaining approximately $2.3 million will be borrowed from a local commercial bank. Initially, the raw materials for bus assembly will be imported from abroad. The enterprise is slated to become operational this year. The exact location of the factory has not yet been determined; three options are under discussion, and this will be finalized with foreign partners on site.