Energy Minister: Jacobs Company will redeem Nairit Plant's debts

• Saturday, February 16, 17:31

 Jacobs Company has approved the project of Nairit Plant CJSC's reactivation and has agreed to redeem the plant's depts., Minister of Energy and Natural Resources of Armenia Armen Movsisyan told media, on February 16. 

He did not specify when the plant's debts will be redeemed, but said that the negotiations "have reached the stage of summary." To recall, the current arrears of wages of the country's chemical giant has approached 49 million over the last 9 months. The monthly salary costs of the plant average $1 million (2,700 employees), the company's press-service told ArmInfo. 

The plant specializing in production of synthetic rubber has been idle since April 2010. About 800 employees regularly work in shifts to keep the enterprise in working condition and to prevent a technological disaster. The rest of the employees are put on enforced leave. In January the leadership of the company promised the employees to give them salaries for two months, but did not give a single dram. 

To remind, during the latest protest action on 26 Nov 2012 the leadership of the Plant's trade union promised Armenian Minister of Energy and Natural Resources Armen Movsisyan that the issue of re- launch of Nairit Plant will become certain by the end of 2012. 

The Armenian press disseminated rumors that Leader of the Prosperous Armenia Party, oligarch Gagik Tsarukyan was allegedly going to buy the enterprise. Itera company (Russia) was also mentioned among the potential buyers of the plant.  Moreover, Itera and Armenian Government discussed possible committing of Nairit Plant to trust of Itera, however, there is no progress in this issue. In response to ArmInfo's request in Nov 2012, the company said that the interest in Nairit still remained.  In 2006, 90% of the shares of "Nairit" were sold to British Consortium Rainoville Property Limited for 40 million US dollars. Rhinoville Property Limited holds 89,999% shares in the plant, the Armenian Ministry for Energy and Natural Resources - 4.496%, and ArmRusgasprom - 3.569%, Yerevan TPP - 1.907%.  The fixed assets of the plant and the major shareholder Rhinoville Property Limited were put in pledge at Mezhgosbank and were transferred to the bank after the company failed to repay the loan.  The loan in the amount of $70 million and a 5-year maturity was provided in 2006 on security of the plant's shares at the annual interest of 12.5%.