Textile industry
The light industry is one of the oldest branches of Armenia. The main development of branch since the Soviet period has begun. Now the branch totals over 154 open and closed joint-stock companies producing cotton and woolen yarns, cotton, woolen and silky clothes, carpets, knitted fabric, stocking-socks, sewing products and textile, leather shoes, art goods, and also to a leather and furs.
It is worth to mention, that till 1988 approximately 25% of the republican budget were formed by light industry enterprises; the branch also was at leading positions in the former USSR, providing 33% of inter-republican export. Till now the most part of the industry enterprises is equipped with the modern import equipment and in-line productions, which can provide a competitive production on a foreign market.
The economic crisis in 90th, random structural changes and imperfect mechanism of privatization resulted in the decline of industry during the last 10 years. The production volumes in separate sub-industries were reduced 20 and more times threatening the state economic security; inter-branch technological communications were at the verge of disintegration.
Within the period of January-October, 2005 the enterprises of light industry have made production to the sum of 7,766.5 million AMD (77.5 %), sales of products made up the sum 7,409.8 million AMD (75.3 % relative to the ratio of the last year corresponding period), and exported to production to the sum of 6,380.9 (71% relative to the ratio of the last year corresponding period). A basic cause for recession is jumps in exchange rate, which resulted recession in money terms in spite of the fact that production output in quantitative expression was not reduced.
In spite of recession in industry as a whole, a number of enterprises have increased their production volumes. It concerns to "Armen-Carpet" OJSC - on 101.0%, "Aragats" OJSC - 111.4%, եA. Ed. Hayas Group" - 193.1%, Gyumri "Arshaluis" OJSC - 135.9%, "Garun" OJSC - on 168.4% and "Metaghagorts" - 258.3%.
By November 1, 2005 the number of the industrial personnel has made 5,435 persons.
Recently, due to output according to the orders of various foreign firms the recovery works for production activity of some industry enterprises became more active. The list of traditional firms-customers ("Amerex" - the USA, "Lovable", "Midex" - Italy, եIve Martin" - Canada, "Verona" and "Robar" - the CIS) was increased with such firms-customers as "Europazan" - Italy, ե Savmor Trading " - the USA, ե Rio de Marco", ե Sunlight Lines" - Panama, "George Barrel Creations" - France, եLebec International Fasion" - Germany. Also, at stage of negotiations there are contracts with new firms.
Such method of work solves the current social and economic problems at the certain stage. Though it seems, there is good reason to believe, that the significant part of the branch enterprises has all opportunities (the modern import equipment, the highly skilled engineer-technical and working personnel) and with the ability independently enter the external and internal markets providing more effective activity.
The works are carried on assistance to recovery and increase of manufacture volumes with a number of the enterprises of branch which have programs, letter contracts or agreements with consumers, and which can produce competitive production. The task is the lack of current assets and it is necessary to assist the enterprises in making use of corresponding credit programs for its solving. Corresponding to a number of industrial personnel the production volume growth rate could be much higher, if the state orders of the various ministries and departments of the Republic (especially Ministry of Defense of RA and replenishment of the state reserve) would be placed at the industry enterprises. The calculations show, that using mentioned directions guarantee the industry enterprises production with 85 names of goods creating thus about 4,000 new workplaces.
