Armenian energy minister: negotiations with CSG and ITERA over Nairit chemical plant under way

YEREVAN, November 16. /ARKA/. Armenian government is now negotiating with Germany’s CSG and Russia’s ITERA to solve Nairit chemical plant’s problems, Armenian Energy and Natural Resources Minister Armen Movsisyan said Wednesday in the National Assembly.

“We have two applications – from German CSG and Russian ITERA,” he said. “These companies have extensive experience in chemical industry and financial resources. We are discussing technical, economic and financial aspects of the matter with them to find a solution to this problem.”

Movsisyan said that there is a complicated technological system introduced 30 year ago in the plant.

“This technological cycle includes some problems, which can be solved by companies having extensive experience in this market,” he said.

“It is necessary to bring new technology to the plant to enable it to release competitive products and ensure economic effectiveness,” the minister said. “This task quite complicated because of outdated equipment here.” Movsisyan has repeatedly said that the modernization of Nairit is estimated to cost $400 to 500 million.

Armenian Prime Minister Tigran Sargsyan said on October 30, that the government was looking for an operator, which would be ready to take over the management of this chemical giant.

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 Limited for $40 million. The remaining 10% belong to the Armenian government.-0---