The Yerevan-based Armenal foil-rolling plant, a subsidiary of the global aluminum giant RUSAL, has reached a significant milestone by producing its 500,000th tonne of aluminum products since beginning operations in May 2000. This achievement underscores the plant's position as a leader among Armenian industrial producers and exporters, despite facing a series of challenges and market fluctuations.
The plant's production efficiency has notably improved over time, with the first 100,000 tonnes taking over a decade to produce, while the most recent 100,000 tonnes were produced in just over three years. This acceleration in production is attributed to the dedication and expertise of Armenal's workforce, as highlighted by General Director Artur Zakaryan. He praised the collective's achievements and foresaw further successes for the plant in the future.
However, Armenal's journey has not been without its hurdles. Reports last year suggested potential workforce reductions and a possible sale of the enterprise by RUSAL. Additionally, Armenia's production of aluminum foil saw a 21.1% decrease by the end of 2023, according to the Stat Committee. Despite this, there was a notable increase in the production of aluminum plates, sheets, strips, and tapes.
Export data from the RA Customs Service revealed a 16.5% decrease in aluminum foil exports in the first half of 2023, with the primary markets being Germany, Poland, and the Netherlands, among others. The decline in production and exports has been partly attributed to Western sanctions against RUSAL and the volatile global aluminum market.
In response to these challenges, the Armenian Ministry of Economy has developed a concept for industry development, acknowledging the risks posed by sanctions and market instability. The strategy suggests potential market reorientation, including a focus on local demand, and offers government support to encourage investment in the sector. Despite the recent declines, the Ministry of Economy maintains that aluminum foil exports in 2023 remain robust compared to pre-2021 levels, highlighting the industry's resilience and the need for diversification to adapt to global demand shifts.
