Armenian parliament allows privatization of Avtomatika enterprise
A set of changes to the privatization program, passed today in the second and final reading by the Armenian parliament, allow the privatization of 80% government-owned stake in Avtomatika plant.
According to Ashot Markosyan, the deputy chairman of the State Property Management Department, the decision was made to help the plant improve its financial and economic standing, to modernize production and attract investments. He said the privatization will enable the company to produce goods corresponding to modern requirements.
The plant is likely to retain its military-industrial profile and will be able to manufacture goods for the armed forces on orders from the military, he said.
Avtomatika plant was founded in 1981 to manufacture small parts, which were used in the manufacturing of units for submarines and cruise missiles. During the Soviet period, the company had about 1,600 people on its payrolls, including 600 engineers.
After Armenia became independent the plant shifted to repairing, maintenance and modernization of air defense systems and radars.
In 2012 the ministry of defense suggested that the government buy back the 20% stake held by private investor for $200,000, but later it turned out that the buildings of the plant were not suitable for the organization of repair and modernization of modern air defense systems, including S-300 systems. -0-