Monitoring missions to selected companies assessed during the EaP GREEN programme – ways forward to improve environmental and economic performance Monitoring visits date: 2021-03-29

The EU4Environment RECP project in Armenia is moving forward with the monitoring missions of the SMEs which were assessed during the implementation of the EaP GREEN[1] programme funded by the European Union in 2013-2017. These companies are located in different regions of Armenia: the cities of Ararat and Vanadzor, the Lori region, and in Yerevan. The enterprises are working in the field of electric battery production, fruit/food production, preserves, construction materials, and chemicals production. The companies include Lusia Food (frozen food), Rozfrud (conserved products in Vanadzor), Arminashogh (bread and cakes), Arararchanshin (road construction materials) and Galiq (the largest producer of limestone).

The SMEs have been working on fulfilling the recommended RECP measures by taking many of them into consideration. In particular, the measures implemented since the completion of the assessments in 2016 include improved technical solutions, energy efficiency measures, reduction of emissions, saving water, energy and input materials, a switch to using solar energy, and improved environmental and health conditions. All these measures have also led to considerable economic savings.

For example, "Galik" LLC from Ararat region (the largest national limestone producer), changed the equipment for breaking rocks by switching to a new technology. Even a minor improvement such as light bulbs and lighters replacement reduced gas consumption by 25%. This led to higher economic efficiency of production, with the SME registering annual savings worth 2,821,000 AMD (≈4,499 Euros).

Additionally, Rozfrud LLC, based in the Lori region of Armenia, increased production from 30 to 100 items. This became possible by building new freezers to store fruits and vegetables, by changing devices and production equipment, and by expanding the consumer market.

Other SMEs utilised the RECP audit recommendations to improve energy efficiency by installing solar panels, LEDs, and introducing technology changes. The RECP measures helped the SMEs to increase their productivity, improve product quality, and organize production cycle in a more environmentally friendly and efficient way. They also acquired new equipment which is also more technologically viable, resulting in an overall improved production. In many companies, the income generation increased due to the improved technical and financial capacities as production was diversified and the access to new markets had a positive impact.  

In general, the SMEs recorded income growth throughout 2016 - 2020, affording not only to improve production, but also to implement environmental, economic, and technological changes by investing into a business expansion stimulated by recommended RECP measures, which, in turn, has also had a positive impact in terms of company growth and income generation.