No strategic investor found for Armenia’s Nairit chemical plant so far

YEREVAN, November 15. /ARKA/. Modernization of Armenian Nairit chemical rubber plant may be carried out with involvement of a strategic investor who has been not found yet, deputy chair of the board of the Eurasian development bank (EDB) Sergey Shatalov told ARKA.

Shatalov said the report prepared on Nairit two years ago analyzed the risks of the project in detail.

“We had consultations with both the previous and the current cabinets, and the government decided to seek a strategic investor for the project”, Shatalov said. It should be a corporate loan, he added.

The government is not going to attract a sovereign loan and to provide sovereign guarantees, which is a far-sighted approach in terms of financial sustainability, Shatalov said.

Nairit was the only plant in the Soviet Union to produce chloroprene rubber.  The plant was closed in 1989 for environmental reasons and resumed operating partially in 1992.  In 2001, some production facilities were separated from the plant for producing chloroprene rubber and a debt-free enterprise based on them was established.  In 2006, 90% of Nairit’s shares were sold to British Rainoville Property Lim ited for $40 million. The remaining 10% belong to the Armenian government. Rhinоville Property Lim ited has been co-founded by the Samex company (Poland), Intertex (USA) and Evrogaz (Russia). In 2010 production was suspended at the plant. –0--