# ARMENIA: THE IMPORTED BUILDING AND FINISHING MATERIALS MARKET

 

INTERNATIONALCOPYRIGHT, U.S. AND FOREIGN COMMERCIAL

SERVICE AND U.S.DEPARTMENT OF STATE, 1999.  ALL

RIGHTS RESERVEDOUTSIDE OF THE UNITED STATES.

 

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SUMMARY

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1.  THIS CABLE REVIEWS THE IMPORTEDBUILDING AND

FINISHING MATERIALSMARKET IN ARMENIA AS OF DECEMBER

1999.  IT INCLUDES MARKET SIZE AND U.S. MARKET

SHARE, MAJOR MARKETSUPPLIERS, AND BEST SALES

PROSPECTS FOR U.S.COMPANIES.  IT ALSO INCLUDES A

LIST OF MAJOR ENDUSERS AND KEY CONTACTS IN THE

BUILDING PRODUCTSMARKET.  END SUMMARY.

 

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MARKET SIZE AND U.S.MARKET SHARE

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2.  THANKS TO A SURGE IN DEMAND GENERATEDBY

INDIVIDUALS ANDPRIVATE CONSTRUCTION COMPANIES, THE

ARMENIAN MARKET FORBUILDING AND FINISHING MATERIALS

HAS DEVELOPEDSIGNIFICANTLY SINCE 1995.  ALTHOUGH

NO PUBLISHEDSTATISTICS ARE AVAILABLE ON IMPORTS OF

BUILDING ANDFINISHING MATERIALS, THE COUNTRY'S

LARGEST IMPORTERSESTIMATE THAT THE SIZE OF THE

OOMESTIC MARKET ISAPPROXIMATELY USD 100 MILLION.

ACCOROING TO THEIRASSESSMENTS, IMPORTED BUILDING

AND FINISHINGMATERIALS IN 1998 TOTALED AROUND USD

50 MILLION.

 

3.  THE MARKET FOR BUILDING MATERIALS ISDOMINATED

BY :

 

0 TURKISH ANDIRANIAN PRODUCTS (50 PERCENT);

 

0 GERMAN, ITALIAN,SPANISH AND OTHER EUROPEAN

PRODUCTS (LESS THAN40 PERCENT); AND

 

0 RUSSIAN ANDUKRAINIAN PRODUCTS (5-7 PERCENT).

 

THE SHARE OFAMERICAN PRODUCTS IN THE MARKET IS

RELATIVELY SMALL(1.5 - 2 PERCENT).  IT INCLUDES THE

FOLLOWING BRANDS:CENTURY (ROOF COATINGS), DUTCH

BOY, ZINOLITH, REDDEVIL, PARAGON PROFESSIONAL, UGL,

CHASE PITKIN, ZAR,COOK, AND OUN (PAINTS).

 

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MAJOR MARKETSUPPLIERS

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4.  ARMENIA HAS 5-7 LARGE BUILDINGMATERIALS

IMPORTERS THAT MAKEUP THE MAJORITY OF DOMESTIC

WHOLESALESUPPLIERS.  TOGETHER, THESECOMPANIES

SUPPLY 50 PERCENT OFLOCAL RETAILERS AND END-USERS.

THE COUNTRY'SDISTRIBUTION NETWORK CONSISTS OF 2O-25

LARGE STORES ANDWAREHOUSES, 1OO-11O MEDIUM-SIZED

RETAIL STORES, ANDAPPROXIMATELY 5OO SMALL-SIZED

RETAIL STORES.  MUCH OF THE REMAINDER OF THE MARKET

IS SUPPLIED BYINDIVIDUAL TRADERS WHO TRAVEL ABROAD

AND IMPORT PRODUCTSEMI-LEGALLY.

 

5.  KERAMIKA, WITH ANNUAL SALES OF ABOUTUSD 3.5

MILLION, SUPPLIES 4OPERCENT OF THE LOCAL CERAMIC

PRODUCT MARKET.  ITS PRODUCTS INCLUDE BATHROOM AND

SANITARY FIXTURESAND SINKS.  THE COMPANY HAS

DISTRIBUTORSHIPAGREEMENTS WITH A NUMBER OF LEADING

EUROPEAN COMPANIES,INCLUDING ITALY'S IDEAL

STANDARD,COOPERATIVA CERAMICA D'IMOLA, CERAMICA

DOLOMITE, ANDOTHERS.

 

6.  SHEN CONCERN IS ANOTHER OF ARMENIA'SLARGEST

IMPORTERS OFBUILDING AND FINISHING MATERIALS. IT

SPECIALIZES INPAINTS AND ROOFING MATERIALS (MOSTLY

IMPORTED FROM THEUNITED STATES AND GERMANY),

PLASTIC WINOOWS ANDDOORS (FROM GERMANY), FLOORING

MATERIALS (FROMGERMANY), AND METALS AND WOOD (FROM

RUSSIA AND UKRAINE).

 

    R AND V COMFORT IS ONE OFARMENIA'S LARGEST

WHOLESALERS OFBUILDING AND FINISHING MATERIALS.

THE COMPANYSPECIALIZES IN IMPORTED CERAMIC PRODUCTS

AND OTHER BUILDINGMATERIALS FROM TURKEY, IRAN, AND

THE UAE, FOCUSINGMAINLY ON RELATIVELY INEXPENSIVE

ITEMS.

 

8.  OJAKH IS ARMENIA'S LARGEST BUILDING AND

FINISHING MATERIALSRESELLER.  IT OWNS RECENTLY A

CHAIN OF RECENTLYRENOVATED STORES IN YEREVAN.

 

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MAJ

OR END-USERS ANDBEST PROSPECTS

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9.  THE MAJOR END-USERS IN ARMENIA OFBUILDING AND

FINISHING MATERIALSINCLUDE:

0 PRIVATE HOUSEHOLDS(60 PERCENT OF TOTAL

CONSUMPTION);

 

0 PRIVATE SMALL- ANDMID-SIZED CONSTRUCTION

COMPANIES (20PERCENT);

 

0 GOVERNMENTAGENCIES AND CHARITY FOUNDATIONS (10

PERCENT); AND

 

0 LARGE CONTRACTORS(10 PERCENT).

 

10.  ACCORDING TO LOCAL IMPORTERS ANDRESELLERS,

THERE IS A STABLEDEMAND FOR HIGH QUALITY,

AFFORDABLE BUILDINGAND FINISHING MATERIALS IN

ARMENIA.  A LIST OF MOST PROMISING PRODUCTSFOLLOWS:

 

0 FLOOR AND WALLTILES (ARMENIA RECENTLY EXPERIENCED

A SURGE IN DEMANDFOR SWIMMING POOL TILES);

 

0 DURABLE PIPES ANDFITTINGS;

0 ROOF COATING;

0 PAINTS; AND

0 INSULATED DOORS ANDWINDOWS.

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CONTACT INFORMATION

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11.  MAJOR DISTRIBUTORS/RESELLERS:

 

SHEN-CONCERN

MR. SAMVELBEGLARIAN, PRESIDENT

2/2 SHIRAKI ST.

YEREVAN-43

TEL/FAX: (374-2) 449-545

TEL/FAX: (374-2) 423-392

 

KERAMIKA

MR. NORAIR KHACHATRIAN,PRESIDENT

4 AVAN #19

YEREVAN

TEL: (374-2) 616-3OO

FAX: (374-2) 151-918

E-MAIL: IMEX[email protected]

 

R & V COMFORT

MR- RUBENSHAHMURADIAN, PRESIDENT

65 ORBELY ST.

YEREVAN

TEL: (374-2) 226-498

FAX: (374-2) 151-475

 

OJAKH - E

MR. YEREM GRIGORIAN

201 MOVSESKHORENATSU ST.

YEREVAN

TEL: (374-2) 574-838

FAX: (374-2) 151-171

 

BRITTANIA

MR. SAMVEL TARASIAN,CEO

9 NALBANDIAN ST.

YEREVAN

TEL: (374-2) 527-955

FAX: (374-2) 527-955

E-MAIL:[email protected]

 

EUROSTAN UYOUT

MR. ARA BADEYAN,PRESIDENT

2/1 DEMIRCHIAN ST.

YEREVAN

TEL: (374-2) 568-505

FAX:  (374-2)568-405

 

12.  OTHER KEY CONTACTS

 

ASSOCIATION OFARMENIAN IMPORTERS OF BUILDING

MATERIALS

MR. RUBENSHAHMURADIAN, PRESIDENT

65 ORBELIYEKHBAYRNERI ST.

YEREVAN

TEL: (374-2) 226-498

FAX: (374-2) 151-475

 

MINISTRY OF URBANDEVELOPMENT OF ARMENIA

MR. HRAIRHOVHANNISIAN, MINISTER

3 GOVERNMENTBUILDING, REPUBLIC SQUARE

YEREVAN

TEL: (374-2) 589-080

FAX: (374-2) 523-200.

 

HOVNANIANINTERNATIONAL

MR. VAHAGNHOVNANIAN, PRESIDENT

50 GEVORK CHAUSH ST.

YEREVAN

TEL: (374-2) 355-501

FAX: (374-2) 341-077

 

AMERICAN EMBASSY,YEREVAN

18 BAGHRAMIAN AVE.

YEREVAN

TEL: (374-2) 151-551

FAX: (374-2) 151-550

E-MAIL:[email protected]

HTTP://WWW.ARMINCO.COM/EMBUSA/COMMERCIAL/FRAME.HTM

CONTACT: GEORGEISAYAN, BISNIS REPRESENTATIVE IN

ARMENIA