Brief Overview of Armenian Electronics Market
(Including Contacts and Investment Leads)
Source: U.S. Embassy, Yerevan
Author: George Isayan, BISNIS Representative
Date: August 1999
Before 1991, Armenia was a key developer, producer and supplier of almost 30 percent of high-tech computer and other electronic equipment and parts for the Soviet defense and space systems. Electronic industry activities were mostly classified and included numerous Armenian research and manufacturing enterprises hidden under civil names - Sirius, Astro, Kometa, Bazalt, Impulse, Electron, Razdanmash, etc. Traditionally, these have also been the best-equipped enterprises in Armenia, and Armenian educational institutions and laboratories for many years produced specialists highly qualified in electronics, hardware and software development.
As a result of the collapse of the Soviet Union, the subsequent economic crises, and embargoes from neighboring countries many of these enterprises have lost their traditional markets and their links in the former Soviet republics. Their expensive equipment are now idle and aging rapidly. Highly qualified researchers, engineers, and workers are underemployed. Most of the enterprises have already been privatized, with the remaining ones are due for privatization soon.
With rare exceptions, the industry is no longer capable of producing competitive products for export on its own. At the same time, the availability of an inexpensive labor force skilled in the operation of hi-tech equipment and electronics may represent partnership/investment opportunities for U.S. companies. Such companies could assemble (and in some cases develop) their products (televisions, VCRs, computers and peripherals, other consumer or industrial electrical and electronic devices, etc.) in Armenia for subsequent export to third countries. The best opportunities, including the production of chips and other electronic components are offered by MARS and Ashtarak plants built and equipped in the late 80's by British firms.
Key Contacts
MARS Plant (Stepan Demirchyan, Director)
111 Raffi St.
Yerevan, Armenia
Tel: (374-2) 738-323, 151-724
Govt. line: 50-44
Fax: (374-2) 732-636, 151-724
(production/assembly of electronic and electrical components/devices)
Transistor R&D Company - Ashtarak Plant (Aram Vardanyan, Director)
41 Arshakunyats Ave.
Yerevan 375026
Tel: (374-1) 405-617, (374-2)560188
Fax: (374-2)151-705. (production/assembly of electronic and electrical components/devices)
Radiophysics Measureement Institute -RMI (Dr. Paris Herouni, Director)
49/4 Komitas Ave., Yerevan-14, Armenia.
Tel: (374-2)234-990
Tel/fax: (374-2) 151-401
E-mail: herouni@sci.am. (laboratory research and production of electronic components and devices)
Ministry of Industry and Trade
Haik Gevorkian, Minister
5 Hanrapetutyan St., Yerevan-10
Tel:(374-2)538-082
Fax:(374-2)588-321, 151-081
Investment Leads
Industry: Electronics
Company: Resistor
Resistor was founded in 1966 and privatized in 1996. The company specializes in manufacturing resistors. The company owns production facilities with 100,000 sq. ft., which include assembling units, metal processing units, and storage space. Before the collapse of the Soviet Union, the defense industry was the plant's main customer. In 1992, the company began developing a new client base. Currently, the company exports to several Russian electronic companies. Resistor employs 50 highly qualified engineers and support staff. All existing equipment is in good working condition. There is a research and development group affiliated with the plant that developed a number of innovative designs in the automotive and electrical engineering sectors.
Resistor seeks a U.S. partner to restructure existing production facilities to assemble and export U.S.- designed electronic devices. The company expects an American partner to supply modern technology and equipment and provide marketing assistance. Resistor will contribute its facilities, space, and highly qualified and inexpensive workforce.
Contact: Yuri Atayan, Executive Director
1 Karchikian Street
Echmiadzin, Armenia
Tel: +374-59-53-423
Fax: +374-59-54-501
Industry: Electronics
Company: Aghavni
Aghavni was established in 1969 and privatized in 1997. The company specializes in producing relays and various types of electrical-magnetic counters of impulses for the telecommunications industry. Aghavni owns 3,280 sq. ft. of production space. The company has exported its products to Russia and other NIS countries. It employs 200 engineers, technicians, and support staff.
Aghavni seeks a U.S. joint venture partner/equity investor to upgrade existing facilities and to provide marketing assistance. Aghavni offers its production space, existing equipment, and low cost workforce.
Contact: Armen Galstian, CEO
12 Jivanu Street, Armavir
Armavir Province, Armenia
Tel: +374-47-63375
Fax: +374-47-50814