**Brief Overview of ArmenianElectronics Market**

**(Including Contacts and InvestmentLeads)**

 

Source: U.S. Embassy, Yerevan

Author: George Isayan, BISNISRepresentative

Date:    August 1999

 

Before 1991, Armenia was a keydeveloper, producer and supplier of almost 30 percent of high-tech computer andother electronic equipment and parts for the Soviet defense and spacesystems.  Electronic industryactivities were mostly classified and included numerous Armenian research andmanufacturing enterprises hidden under civil names - Sirius, Astro, Kometa,Bazalt, Impulse, Electron, Razdanmash, etc. Traditionally, these have also been the best-equipped enterprises inArmenia, and Armenian educational institutions and laboratories for many yearsproduced specialists highly qualified in electronics, hardware and softwaredevelopment.

 

As a result of the collapse of theSoviet Union, the subsequent economic crises, and embargoes from neighboringcountries many of these enterprises have lost their traditional markets and theirlinks in the former Soviet republics. Their expensive equipment are now idleand aging rapidly. Highly qualified researchers, engineers, and workers areunderemployed. Most of the enterprises have already been privatized, with theremaining ones are due for privatization soon. 

 

With rare exceptions, the industryis 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 theoperation of hi-tech equipment and electronics may representpartnership/investment opportunities for U.S. companies. Such companies couldassemble (and in some cases develop) their products (televisions, VCRs,computers and peripherals, other consumer or industrial electrical and electronicdevices, etc.) in Armenia for subsequent export to third countries.  The best opportunities, including theproduction of chips and other electronic components are offered by MARS andAshtarak 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 electronicand 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: [email protected]. (laboratory research and production of electroniccomponents and devices) 

 

Ministry of Industry andTrade

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 in1966 and privatized in 1996.  Thecompany 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 SovietUnion, the defense industry was the plant's main customer.  In 1992, the company began developing anew client base.  Currently, thecompany exports to several Russian electronic companies.  Resistor employs 50 highly qualifiedengineers and support staff.  Allexisting equipment is in good working condition.  There is a research and  development group affiliated with the plant that developed anumber of innovative designs in the automotive and electrical engineeringsectors.

 

Resistor seeks a U.S.partner to restructure existing production facilities to assemble and exportU.S.- designed electronic devices. The company expects an American partner to supply modern technology andequipment and provide marketing assistance.  Resistor will contribute its facilities, space, and highlyqualified 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 establishedin 1969 and privatized in 1997. The company specializes in producing relays and various types ofelectrical-magnetic counters of impulses for the telecommunicationsindustry.  Aghavni owns 3,280 sq.ft. of production space.  Thecompany 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 toprovide marketing assistance. Aghavni offers its production space, existing equipment, and low costworkforce.

 

Contact: Armen Galstian,CEO

12 Jivanu Street,Armavir

Armavir Province,Armenia

Tel: +374-47-63375

Fax: +374-47-50814