Economy Minister assured that he will make every effort to save Nairit Plant

Minister of Economy of Armenia Artsvik Minasyan told journalists today that he will make every effort to save Nairit plant. I adhere to the same position and will make every effort to preserve Nairit", the minister stated. The minister refused to comment on the remark that after his visit to the plant last week all the remaining employees were dismissed. "I am not aware who spreads such information and I do not want to talk about this", Minasyan stated. 

To note, yesterday the employees and the managing staff of the Nairit chemical plant received notifications about their dismissal on July 1 2016, Karine Shahverdyan, a member of the NAIRIT NGO Coordination Group of the former employees of the chemical giant, told ArmInfo.  She said the employees have not received salaries since February.  Considering the Plant's new arrears of wages (for 3 months), it is not surprising that the remaining 480-500 staff members received dismissal notifications. 

To note, Nairit Plant has been idle since April 2010. At the moment the debts of Nairit Plant amount to 50 billion AMD (about 130 million USD). The Plant's shares were given as security against the CIS InterStateBank's 70 mln USD loan provided in 2006 for 5 years - till late Dec 2011 - at 12.5% p.a. In 2006, 90% of Nairit Plant's shares were sold to Rhinoville Property Limited (UK). The latter owns an 89,999% stake in the plant, Armenian Ministry of Energy and Natural Resources - 4,496%, Gazprom Armenia CJSC (previously ArmRusgasprom) - 3,596%, and Yerevan Thermal Power Plant - 1,907%.  In 2015 the World Bank conducted a financial and technical audit at Nairit Plant at the request of the Armenian Government. The WB considers the re-launch of the plant to be inexpedient because it will need at least $250 mln.  But even if investors are found, the WB experts do not think the product will be competitive, because it will have a high prime cost.  Most experts say that the results of the WB audit can be considered as recommendations to the Plant's bankruptcy process.  

Earlier, on March 16 Minister of Energy and Natural Resources of Armenia Levon Yolyan stated that Russian "RT- Khimkomposit" holding, which is a part of "Rostekh" State Corporation, is preparing proposals to the Armenian government for restarting Nairit, a giant chemical plant in Armenia. At the same time by the order of Armenian Minister of Energy and Natural Resources Levon Yolyan, a working group has been set up to research the current condition of Nairit Plant CJSC and the further steps to help the plant overcome the current situation.