Armenia to set up production of buses jointly with Korean company

A joint project by the South Korean Youngsan corporation and the Armenian National Interests Fund (ANIF) will see a bus manufacturing plant established in Armenia, Armenpress reports.

The buses assembled in Armenia are expected to be exported to the Eurasian Economic Union (EAEU) market, ANIF CEO David Papazyan told the agency.

He said discussions are under way with other companies as well, and they aim at making Armenia an industrial hub.

“The fund will co-finance part of the project and will hold 40-49 percent of shares,” Papazyan said.

Total investments will reach $4.4 million, of which about $1 million will be financed by the State Interests Fund of Armenia, a little over $1 million by a foreign investor, and the remaining $2.3 million will be borrowed from an Armenian commercial bank. The loan will be to a joint venture, both parties will repay it over time.

Raw materials for the buses will initially be imported, but are expected to be produced in Armenia at a later stage, the Fund’s CEO stated.

The company is scheduled to launch this year. The exact location of the plant is yet to be decides with three options being considered.

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