Nairit Plant needs managing operator

The Armenian government has announced a tender to choose a managing operator for Nairit Plant. At a cabinet session, Prime Minister Tigran Sargsyan assigned Minister of Energy and Natural Resources Armen Movsisyan to provide detailed information about the plant.

According to A. Movsisyan, Nairit Plant CJSC produces chloroprene rubbers and latexes. The plant has 3074 employees. Following company’s privatization in 2006-2007, the largest volume of production was released in 2007-2008, with gas price amounting to $57, but later increase in gas tariff had a negative impact on Nairit.

The Minister noted that chloroprene rubber production is the key problem, affected by the increase in oil prices.

“In 2008, the financial crisis collapsed the entire chemical industry.”

The Minister said that a new development program envisages holding a tender to choose a managing operator for the plant.

“We need investments amounting to $400-500m and operators to deal with large investments. The deadline for the tender expires on June 15,” Movsisyan said adding that the Armenian government website provides detailed information on this issue.

Besides, Nairit Plant has 4 months arrears of wages. Company’s external liabilities amount to around $120-130m.

Armen Movsisyan stressed that Nairit’s main shareholders are not linked to the government.