May 1999

by George Isayan

Armavir province is located in the southwestern part of Armenia, west of Yerevan. The province has a total area of 477 sq. miles and a population of 315,500. Located in the fertile Ararat valley between Mount Ararat and Mount Aragats, the province has a 45-mile common border with Turkey, which runs along the Arax river. The climate in Armavir is sunny, dry, and continental.

The industrial potential of Armavir is concentrated in three major cities: Armavir (the province's capital), Echmiadzin, and Metsamor. The province has 40 large- and medium-scale industrial enterprises involved in energy, electronics, food processing, chemicals, and machinery. Ninety-five percent of these have been privatized.

Agriculture is the largest and fastest growing sector of the province's economy. Eighty percent of large- and medium-sized agricultural enterprises specialize in the processing of fruits and vegetables supplied by local farmers.

Major Cities and Opportunities
Armavir has 46,000 inhabitants and 20 large- and medium-scale enterprises, 80 percent of which have been privatized. Among them are several large food processing companies. The Armavir Brandy Factory is the second largest in Armenia after the Yerevan Brandy Factory. Both factories have been acquired by France's Pernod Ricard company. Another large enterprise is Map winery. It produces popular brands of wines and brandies for export to the nis countries and, very recently, to the United States. The similarly named Matp is a successful furniture plant. Equipped with modern Italian machinery, it sells various types of furniture in Armenia as well as in neighboring Georgia.

Echmiadzin is the largest city in the province. With its population of 65,000, it is home to 16 large- and medium-scale enterprises that specialize in food processing, chemicals, and apparel production. Jrarat Poultry Factory JSC, with annual sales of $2.5 million, is the largest factory of its kind in Armenia. The company in interested in establishing contacts with American companies to upgrade existing facilities and import new technologies and equipment. Echmiadzin is also home to a growing number of small private businesses engaged in retail trading, gasoline supply, and provision of auto repair services. The city has five enterprises involved in electronics that were originally established to fulfill orders for the Soviet defense industry. One of these enterprises has designs that could be used in the automotive and electrical engineering sector and is seeking an American investor to help restructure its facilities for civilian production.

Many enterprises operating in Armavir province are interested in establishing long-term cooperation or a partnership with foreign investors and may offer U.S. firms interesting investment opportunities in food processing, agribusiness, and electronic components manufacturing.

For more information on business opportunities in the province, contact Henrik Alexanian, Head of Programs Department, or Hakob Hakobian, Head of Mass Media Department, Armavir Governor's Office, tel: +374 (47) 65-547, 62-326, fax: +374 (47) 60-856. For more investment opportunities in Armavir province, visit BISNIS Online at www.mac.doc.gov/bisnis/country/caucasus.htm#Armenia.

George Isayan represents BISNIS and is located at the U.S. Embassy in Yerevan.

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)