Wednesday, March 26 2014

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.