Hrazdan cement plant, Armenia, has an outstanding debt of AMD509m (USD1.08m) owed to the tax authorities and faces closure, according to plant manager Naira Martirosyan.

Over 2008-14, the plant paid AMB2.9bn in various taxes, but the sharp decline in domestic consumption and problems with exports resulted in serious losses and failure to service debts.

The Hrazdan cement plant was commissioned in 1970, selling its products both at home and in Georgia and Russia. In the 1990s the plant stood idle. In 2001 it was privatized by the owner of MIKA Armenia Mikhail Bagdasarov. Later it was sold to VTB Bank (Armenia) as repayment of debt.

The plant, located in the town of Hrazdan in Kotayk region, briefly resumed operation in July 2014 thanks to a loan from VTB Bank (Armenia).

However, a request to restructure the debt has been turned down by the authorities, leading to the imminent closure of the facility.