Tweet
ARMENIA IS READY TO DISCUSS VARIOUS SCENARIOS OF NAIRIT PLANT DEVELOPMENT STRATEGY
by Alexandr Avanesov
ARMINFO
Wednesday, March 26, 16:27
Nairit Plant CJSC has been operating at a loss since the day of its
foundation in 2001, the press service of Nairit Plant reports when
responding to the criticism made during the ARFD's hearings on the
situation at the Plant.
To note, during the hearings the former head of the Plant, Karen
Israelyan, said that as of 1 Jan 2009 Nairit's owner Rhinoville
Property Limited should have invested about 60 mln USD. Otherwise,
it was to be deprived of the Plant. "The company failed to perform its
obligations and the Government was aware of that and could have taken
the company's shares and in that case the Government could have become
the sole owner of the Plant again. Nairit's debt reached 300 mln USD
due to the offshore company", he said. As regards the further fate
of Nairit, Israelyan assured that even in the current condition the
Plant can operate and overcome all the difficulties if the Government
displays a desire and will. "The people are eager to work. The
equipment is in good condition. The Plant can be re- launched", he
said. According to Israelyan's estimations, today the Plant needs
20 mln USD to be restored. As regards the possibilities to sell the
Plant's products, the ex-head of the Plant is sure that it will take
Nairit only a few months to gain a foothold in the market again.
In the meantime, the employees of the Plant consider that Nairit
operated at a loss even when Israelyan was the director (2006-2007).
Moreover, the prime cost of the products was higher than the sales.
The company is ready to discuss various scenarios of the further
development strategy with the investors interested in production of
rubber and related goods. The company qualifies Israelyan's statements
as "a cheap show".
To recall, on 12 March 2014 the Arbitration Court of Moscow sustained
Interstate Bank's claim on recovery of a $25,183 million debt from
Nairit Plant, a chemical giant in Armenia. The defendant, Nairit Plant,
is a credit bondsman. The credit was given to the plant's owner,
Rhinoville Property Limited. As a result of the accumulated debt,
Nairit was damaged in an amount of $220-240 million, and its debt
for salary amounted to $12 million.
Russia's largest oil company Rosneft has been actively interested in
the Nairit plant. On 23 December 2013 Rosneft, L.L.C. PIRELLI Tyre
Russia, and Oil
Techno signed a Memorandum of Understanding with regard to
establishing styrene-butadiene rubber (SBR) production joint venture
in Armenia. The total cost of the project is $500 million. Rosneft
said the implementation of this project will help introduce new
technologies in Armenia and create a modern production facility of
state-of-the-art eco-friendly materials - SBR is employed in the
production of "Green tires", which improves fuel economy performance
and also tire grip in wet and dry conditions.
Under the terms of the Memorandum Rosneft intends to be a leading
investor and equity holder in Yerevan's Nairit plant and Pirelli will
cooperate jointly with Rosneft in research and development activities
to develop SBR and is interested in entering into a long-term off-take
agreement to purchase the SBR produced.
Nairit enterprise was the monopoly manufacturer of chloroprene rubbers
in the USSR. In 2006, 90% of Nairit's shares were sold to Rhinoville
Property Limited for $40 million, while the remaining 10% belong to
the Armenian government. The plant has not operated since April 2010.
by Alexandr Avanesov
ARMINFO
Wednesday, March 26, 16:27
Nairit Plant CJSC has been operating at a loss since the day of its
foundation in 2001, the press service of Nairit Plant reports when
responding to the criticism made during the ARFD's hearings on the
situation at the Plant.
To note, during the hearings the former head of the Plant, Karen
Israelyan, said that as of 1 Jan 2009 Nairit's owner Rhinoville
Property Limited should have invested about 60 mln USD. Otherwise,
it was to be deprived of the Plant. "The company failed to perform its
obligations and the Government was aware of that and could have taken
the company's shares and in that case the Government could have become
the sole owner of the Plant again. Nairit's debt reached 300 mln USD
due to the offshore company", he said. As regards the further fate
of Nairit, Israelyan assured that even in the current condition the
Plant can operate and overcome all the difficulties if the Government
displays a desire and will. "The people are eager to work. The
equipment is in good condition. The Plant can be re- launched", he
said. According to Israelyan's estimations, today the Plant needs
20 mln USD to be restored. As regards the possibilities to sell the
Plant's products, the ex-head of the Plant is sure that it will take
Nairit only a few months to gain a foothold in the market again.
In the meantime, the employees of the Plant consider that Nairit
operated at a loss even when Israelyan was the director (2006-2007).
Moreover, the prime cost of the products was higher than the sales.
The company is ready to discuss various scenarios of the further
development strategy with the investors interested in production of
rubber and related goods. The company qualifies Israelyan's statements
as "a cheap show".
To recall, on 12 March 2014 the Arbitration Court of Moscow sustained
Interstate Bank's claim on recovery of a $25,183 million debt from
Nairit Plant, a chemical giant in Armenia. The defendant, Nairit Plant,
is a credit bondsman. The credit was given to the plant's owner,
Rhinoville Property Limited. As a result of the accumulated debt,
Nairit was damaged in an amount of $220-240 million, and its debt
for salary amounted to $12 million.
Russia's largest oil company Rosneft has been actively interested in
the Nairit plant. On 23 December 2013 Rosneft, L.L.C. PIRELLI Tyre
Russia, and Oil
Techno signed a Memorandum of Understanding with regard to
establishing styrene-butadiene rubber (SBR) production joint venture
in Armenia. The total cost of the project is $500 million. Rosneft
said the implementation of this project will help introduce new
technologies in Armenia and create a modern production facility of
state-of-the-art eco-friendly materials - SBR is employed in the
production of "Green tires", which improves fuel economy performance
and also tire grip in wet and dry conditions.
Under the terms of the Memorandum Rosneft intends to be a leading
investor and equity holder in Yerevan's Nairit plant and Pirelli will
cooperate jointly with Rosneft in research and development activities
to develop SBR and is interested in entering into a long-term off-take
agreement to purchase the SBR produced.
Nairit enterprise was the monopoly manufacturer of chloroprene rubbers
in the USSR. In 2006, 90% of Nairit's shares were sold to Rhinoville
Property Limited for $40 million, while the remaining 10% belong to
the Armenian government. The plant has not operated since April 2010.