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PIRELLI TO VISIT ARMENIA'S NAIRIT PLANT TO ANALYZE INVESTMENT OPPORTUNITIES
Interfax, Russia
September 3, 2013 Tuesday 3:23 PM MSK
MOSCOW. Sept 3
Rosneft (RTS: ROSN) President Igor Sechin has held a working meeting
with Chairman of the Board of Directors and Managing Director of
Italian tire manufacturer Pirelli Marco Tronchetti Provera, the
Russian state-owned oil producer said in a statement.
Rosneft reached an agreement "with its partner company Pirelli for
Pirelli's delegation to visit the Nairit plant [Yerevan, Armenia]
to evaluate and determine possible opportunities for cooperation,"
the press release said.
Sechin also held a working meeting with General Director of the Nairit
plant Ovanes Akhinyan and Deputy General Director for Reconstruction
and Development Karen Mirzoyan on Rosneft's potential participation
in a project to produce chloroprene rubber.
"In August 2013, Jacobs Consultancy Ltd conducted a technical and
environment audit of chloroprene rubber production from butadiene at
Nairit. Rosneft will take a decision whether to take part in this
project once it receives the final audit results and discusses the
conditions to join the project with the Armenian government," the
press release said.
Rosneft and Pirelli are still working on a plan to open a retail
outlet for the Italian company's products in the framework of the
Russian company's retail chain. As part of this project, Rosneft
and Pirelli have preliminarily identified a list of prospective
facilities to accommodate tire centers, which will be located in nine
Russian federal subjects: Moscow, the Moscow region, St. Petersburg,
Saratov, the Rostov region, the Krasnodar territory, Volgograd,
Samara, and Voronezh.
As reported, the Armenian government is in talks with Rosneft to sell
shares in the Nairit plant, which has been idle since April 2010. It
was designed to produce 10,000 tonnes of acetylene rubber and 25,000
tonnes of butadiene rubber per year. The program to develop the
enterprise entails the relaunch of chloroprene rubber production from
butadiene for the purpose of later boosting output to 25,000-30,000
tonnes a year, which is equal to 6%-8% of the global market. By the
end of the 1980s, the plant occupied 10%-12% of the global chloroprene
rubber market.
Rubber production was established at the Nairit plant by an acetylene
technology from natural gas. In recent years, because of rising
gas prices and the latest global economic crisis, the enterprise's
situation has sharply deteriorated, eventually precipitating its
shutdown. The company was planning to attract investors in order to
resume production and convert to butadiene technology.
British consortium Rhinoville Property Ltd, founded by Polish company
Samex, American company Intertex, and Russian company Eurogas,
bought 90% of the Nairit company's shares in 2006. The consortium
held 89.999% of CJSC Nairit Plant's shares, the Armenian Energy and
Natural Resources Ministry owned 4.496%, CJSC ArmRosGazprom had 3.596%,
and CJSC Yerevan CHPP owned 1.907%.
The fixed assets of the plant and its main shareholder (Rhinoville
Property) were pledged as collateral on a loan from Mezhgosbank CIS
and transferred to the bank as its property when the loan was not
repaid. Mezhgosbank issued the $70-million loan in 2006 under the
plant's collateral for a five-year period, effective until the end
of December 2011, at 12.5% per annum. The plant's current debt is
$130 million.
Eb ak
Interfax, Russia
September 3, 2013 Tuesday 3:23 PM MSK
MOSCOW. Sept 3
Rosneft (RTS: ROSN) President Igor Sechin has held a working meeting
with Chairman of the Board of Directors and Managing Director of
Italian tire manufacturer Pirelli Marco Tronchetti Provera, the
Russian state-owned oil producer said in a statement.
Rosneft reached an agreement "with its partner company Pirelli for
Pirelli's delegation to visit the Nairit plant [Yerevan, Armenia]
to evaluate and determine possible opportunities for cooperation,"
the press release said.
Sechin also held a working meeting with General Director of the Nairit
plant Ovanes Akhinyan and Deputy General Director for Reconstruction
and Development Karen Mirzoyan on Rosneft's potential participation
in a project to produce chloroprene rubber.
"In August 2013, Jacobs Consultancy Ltd conducted a technical and
environment audit of chloroprene rubber production from butadiene at
Nairit. Rosneft will take a decision whether to take part in this
project once it receives the final audit results and discusses the
conditions to join the project with the Armenian government," the
press release said.
Rosneft and Pirelli are still working on a plan to open a retail
outlet for the Italian company's products in the framework of the
Russian company's retail chain. As part of this project, Rosneft
and Pirelli have preliminarily identified a list of prospective
facilities to accommodate tire centers, which will be located in nine
Russian federal subjects: Moscow, the Moscow region, St. Petersburg,
Saratov, the Rostov region, the Krasnodar territory, Volgograd,
Samara, and Voronezh.
As reported, the Armenian government is in talks with Rosneft to sell
shares in the Nairit plant, which has been idle since April 2010. It
was designed to produce 10,000 tonnes of acetylene rubber and 25,000
tonnes of butadiene rubber per year. The program to develop the
enterprise entails the relaunch of chloroprene rubber production from
butadiene for the purpose of later boosting output to 25,000-30,000
tonnes a year, which is equal to 6%-8% of the global market. By the
end of the 1980s, the plant occupied 10%-12% of the global chloroprene
rubber market.
Rubber production was established at the Nairit plant by an acetylene
technology from natural gas. In recent years, because of rising
gas prices and the latest global economic crisis, the enterprise's
situation has sharply deteriorated, eventually precipitating its
shutdown. The company was planning to attract investors in order to
resume production and convert to butadiene technology.
British consortium Rhinoville Property Ltd, founded by Polish company
Samex, American company Intertex, and Russian company Eurogas,
bought 90% of the Nairit company's shares in 2006. The consortium
held 89.999% of CJSC Nairit Plant's shares, the Armenian Energy and
Natural Resources Ministry owned 4.496%, CJSC ArmRosGazprom had 3.596%,
and CJSC Yerevan CHPP owned 1.907%.
The fixed assets of the plant and its main shareholder (Rhinoville
Property) were pledged as collateral on a loan from Mezhgosbank CIS
and transferred to the bank as its property when the loan was not
repaid. Mezhgosbank issued the $70-million loan in 2006 under the
plant's collateral for a five-year period, effective until the end
of December 2011, at 12.5% per annum. The plant's current debt is
$130 million.
Eb ak