Nairit Plant employees to request Armenian President to re-launch the Plant and annul "illegal" agreements

ArmInfo. The employees of the Nairit Plant will fight for reactivation of the plant and for cancellation of the "illegal" agreement of assignment of claims in respect of penalties and fines from their wages to Nairit-2 enterprise. The Plant's employees said at today's press conference that they are going to address the relevant letter to the President of Armenia.

They said that in August 2015 the Armenian Government completely repaid the arrears in wages owed to all former employees of the Plant. At the same time, the employees were forced to sign an agreement of assignment of claims in respect of penalties and fines from their wages to the Nairit-2 enterprise. Anush Harutyunyan, former Spokesperson for Nairit Plant, said that the agreement also increased the debt burden of the Plant and Nairit-2 received the right to claim the penalties and fines from the possible investor of the enterprise. She noted that on October 22 the employees will launch a signature collection process to send the letter to the President, requesting him to declare the "illegal" agreements null and void. "Afterwards, through legal proceedings each employee of the plant will demand payment of the penalties and fines owed over the period of arrears in wages," said the former spokesperson.

As regards the re-launch of the plant, Hrach Tadevosyan, the chairman of the trade union of Nairit Plant, said that the specialists of the enterprise have presented three programs for the plant operation with different capacities. "The most expensive program implies investments worth $97 mln instead of $350-400 million specified in the audits of the World Bank," said Tadevosyan. "Donor countries such as the United States, Germany, France and Japan have rubber manufacturers and it is not beneficial for them to have such a competitor as Nairit Plant," he said.

Nairit Plant has been idle since April 2010. 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%. At the moment the debts of Nairit Plant amount to 50 billion AMD (about 130 million USD).

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.