Wednesday, June 13 2018 19:19
Naira Badalian

Investors promise to invest 120-130 million EUR in "Nairit" plant  restart 

Investors promise to invest 120-130 million EUR in "Nairit" plant  restart 

ArmInfo. The leadership of the holding "EU-Assia Business Financing Center" after meetings with the Deputy Prime Minister Tigran Avinyan and the Minister of Economic  Development and Investments Artsvik Minasyan is optimistic about the  restart of the Nairit plant.

On June 13, at the meeting with  journalists, the president of the holding Ashot Grigoryan, the  chairman of the holding and the head of the company "SynCo Gropu"  Samuel Bibak, the senior adviser of the holding Arshak Nazaryan and  the ex-director of the enterprise Karen Israelyan stated.

According to Grigoryan, during the meeting with the Minister of  Economic Development and Investments of Armenia, they received a  green light from Minasyan to restart the plant. They asked to conduct  an audit in Nairit, which will allow us to more accurately assess the  state of the plant and clarify the amount of necessary investments,  and as a result, a memorandum will be signed between the government  and representatives of the Holding on the commencement of work on the  resumption of the activities of the chemical giant.

The signing of the Memorandum, as Ashot Grigoryan believes "just  around the corner" - in a couple of months. The amount of investment  will depend on how many production lines will be launched. At the  same time, as indicated by him, 120-130 million EUR will be required  to fully start the plant. At the initial stage, the volume of planned  investments will be around 25-30 euros, in the future - an additional  105 million EUR.

In 2016, the former director of Nairit, Karen Israelyan, reported  that the holding of the EU-Assia Business Financing Center is  interested in conducting a technical audit of the Nairit plant (it  has been idle since March 2010. The enterprise completely stopped  work in 2014, and the total debt of the company approached the mark  of 50 billion AMD or about $ 130 million). Israelyan noted that the  representatives of the holding prepared a "Memorandum of  Understanding" for this purpose, a document that will soon be  submitted to the government of Armenia. It was announced that if the  government signed it, the holding company will be able to attract an  audit company to conduct a full technical examination of the  enterprise to prepare feasibility study.

However, on December 6, 2017, the Minister of Energy Infrastructures  and Natural Resources of the Republic of Armenia Ashot Manukyan  stated from the rostrum of the parliament that the EU-Assia Business  Financing Center never submitted a health program or a program for  restarting the Yerevan-based Nairit chemical plant to the government  of Armenia.

Meanwhile, on May 11, 2018, the chairman of the Republican Union of  Employers (RSA), economist Gagik Makaryan stated that there is no  sense in restarting the chemical giant of Armenia - the Nairit plant.   He explained that according to certain estimates for the  modernization of the plant, the replacement of filters, etc. it is  necessary to order $ 200 million, according to the government  estimates - about $ 300 million. However, according to Makaryan, the  amount of funds necessary to restart the chemical agent can reach $ 1  billion. In addition, in case of restarting, "Nairit" will become the  Russian market. However, according to the economist, there is no  certainty that Russia, due to various circumstances, in particular,  related to sanctions in one day, will not say that it refuses to buy  rubber from Armenia.

Nevertheless, some experts believe that it is impossible to refuse a  unique enterprise - until the end of the 1980s the plant's products  occupied 10-12% of the world market of synthetic rubber. Its  modernization will lead to a huge multiplicative and cumulative  effect, which will allow Armenia to restore the development of small  chemistry - cosmetic production, chemical reagents, production of  special tires and rubber products. Chemical production had a special  place in Soviet Armenia with its own personnel and special scientific  potential. On the basis of its own developments, it is possible to  set up an inexpensive production of highly demanded rubber  anti-seismic cushions for building buildings in seismic zones. At the  plant "Nairit" the scientific research institute successfully worked,  numerous developments of which are still being dusted in the  archives. Unfortunately, the plant for the past 25 years has been  seen as a "cash cow" for certain unscrupulous groups deliberately  breaking up production for personal gain.

POST A COMMENT
Input digits     


News
Cadastre: apartments have risen in price by 12.9% over year in  Yerevan, with purchasesale transactions increasing by 39.8%Cadastre: apartments have risen in price by 12.9% over year in  Yerevan, with purchasesale transactions increasing by 39.8%
Over 10 cases initiated against biometric personal data processorsOver 10 cases initiated against biometric personal data processors
IT companies increased tax payments to state budget by 3.5%IT companies increased tax payments to state budget by 3.5%
High-Tech Minister visits Digitain,  one of leading Armenian  companies in iGaming High-Tech Minister visits Digitain,  one of leading Armenian  companies in iGaming 
Moscow reacts to gas overtures between Yerevan and Baku Moscow reacts to gas overtures between Yerevan and Baku 
Abgar Budaghyan: In 2040-2050, Armenia will be able to independently  meet its energy demand through NPP and renewable energy sourcesAbgar Budaghyan: In 2040-2050, Armenia will be able to independently  meet its energy demand through NPP and renewable energy sources
Expert: Armenia`s energy independence level  is about 27%Expert: Armenia`s energy independence level  is about 27%
Converse Bank bonds were bought in primary market within daysConverse Bank bonds were bought in primary market within days
ACBA Bank tops list of large taxpayers among Armenian banks in Q1  2024ACBA Bank tops list of large taxpayers among Armenian banks in Q1  2024
Armenia`s government plans introducing SAFE format Armenia`s government plans introducing SAFE format 
Armenia`s Civil Aviation Committee to render paid servicesArmenia`s Civil Aviation Committee to render paid services
New regulations for fulfillment of tax obligations of organizers  engaged in gaming activitiesNew regulations for fulfillment of tax obligations of organizers  engaged in gaming activities
New tax reporting mechanism to be introduced in Armenia New tax reporting mechanism to be introduced in Armenia 
RA government to return to initial route of laying Armenia-Georgia  power line with construction of electrical substation near Ddmashen  village RA government to return to initial route of laying Armenia-Georgia  power line with construction of electrical substation near Ddmashen  village 
Yerevan ready to discuss purchase of Azerbaijani gas with Baku -  SimonyanYerevan ready to discuss purchase of Azerbaijani gas with Baku -  Simonyan
Taxable jobs 5% up in Armenia Taxable jobs 5% up in Armenia 
Binance and Binance Academy announce large-scale online educational  project Binance and Binance Academy announce large-scale online educational  project "Crypto School"
ArmSwissBank Brings Apple Pay to CustomersArmSwissBank Brings Apple Pay to Customers
Armenia participates in 80th session of UNESCAPArmenia participates in 80th session of UNESCAP
34th session of FAO Regional Conference will take place on May 14-17,  202434th session of FAO Regional Conference will take place on May 14-17,  2024
Armenian Economy Minister offers Japanese side to expand cooperation  in agriculture and water resources managementArmenian Economy Minister offers Japanese side to expand cooperation  in agriculture and water resources management
Vassilis Maragos assures: All efforts to be made for further EU  assistance to Armenian NPP Vassilis Maragos assures: All efforts to be made for further EU  assistance to Armenian NPP 
Armenia to study Lithuania`s experience in energy sectorArmenia to study Lithuania`s experience in energy sector
Armenian banks` profit increased by 18.8% per annum in Q1 2024 thanks  to similar growth in loan portfolioArmenian banks` profit increased by 18.8% per annum in Q1 2024 thanks  to similar growth in loan portfolio
Caring for nature, we have started with ourselves - Team Telecom ArmeniaCaring for nature, we have started with ourselves - Team Telecom Armenia
Delegation of Armenia`s Ministry of Finance hold important meetings  in Washington Delegation of Armenia`s Ministry of Finance hold important meetings  in Washington 
Monitoring of effectiveness of budget programmes to be conducted in  Armenia Monitoring of effectiveness of budget programmes to be conducted in  Armenia 
Up to 10% cashback from GetTransfer with IDBank cardsUp to 10% cashback from GetTransfer with IDBank cards
South Africa expresses interest in developing cooperation with  Armenia in jewelry and cutting industry South Africa expresses interest in developing cooperation with  Armenia in jewelry and cutting industry 
Armenia, UAE discuss possibilities of increasing mutual trade volumesArmenia, UAE discuss possibilities of increasing mutual trade volumes
Yerevan is trying to demonstrate to its Anglo-Saxon `bosses` its  readiness to reduce economic cooperation with Iran - political  scientistYerevan is trying to demonstrate to its Anglo-Saxon `bosses` its  readiness to reduce economic cooperation with Iran - political  scientist
KfW stands ready to support Armenian government  in implementation of  new projectsKfW stands ready to support Armenian government  in implementation of  new projects
Cooperation with German Fichtner company discussed Cooperation with German Fichtner company discussed 
Armenia, China can record much greater results both in economic and  political dialogue and cultural cooperation - MPArmenia, China can record much greater results both in economic and  political dialogue and cultural cooperation - MP
U.S. capital important for Armenia`s mining industryU.S. capital important for Armenia`s mining industry
Expert: When there is no trust between private and public sectors,  unfortunately, there is no need to talk about right decisionsExpert: When there is no trust between private and public sectors,  unfortunately, there is no need to talk about right decisions
Armenia introduces new rules for labeling carbonated, non-carbonated  watersArmenia introduces new rules for labeling carbonated, non-carbonated  waters
Arsen Bazikyan: Armenia`s agriculture is transforming into  agribusinessArsen Bazikyan: Armenia`s agriculture is transforming into  agribusiness
Armenia to join e-CMR protocolArmenia to join e-CMR protocol
Armenia`s government changes Kaps reservoir project funding Armenia`s government changes Kaps reservoir project funding 
Armenian FM, minister of economy of Saudi Arabia discuss development  of economic ties Armenian FM, minister of economy of Saudi Arabia discuss development  of economic ties 
IMF upgrades Armenia`s GDP growth forecast for 2024 from 5% to 6%,  expecting inflation at 3.1% and unemployment at 13%IMF upgrades Armenia`s GDP growth forecast for 2024 from 5% to 6%,  expecting inflation at 3.1% and unemployment at 13%
Armenia`s Deputy PM, Veolia Vice President discuss problems with  water supply to consumers Armenia`s Deputy PM, Veolia Vice President discuss problems with  water supply to consumers 
EEC Board decided to liberalize certain categories of precious  metals` import/exportEEC Board decided to liberalize certain categories of precious  metals` import/export
Earthquakes, drought could affect Armenia`s debt sustainability -  EFSDEarthquakes, drought could affect Armenia`s debt sustainability -  EFSD
Converse Bank starts initial placement of next AMD, USD bonds in  amount of AMD 5 billion, $10 millionConverse Bank starts initial placement of next AMD, USD bonds in  amount of AMD 5 billion, $10 million
USAID releases fact sheet following Joint EU-US-Armenia High Level  Meeting in Support of Armenia USAID releases fact sheet following Joint EU-US-Armenia High Level  Meeting in Support of Armenia 
Expert: Armenia has the potential to get high-quality and abundant  harvest of apricots this yearExpert: Armenia has the potential to get high-quality and abundant  harvest of apricots this year
EFSD presents assessment of potential impact of natural disasters on  debt sustainability of Armenia, Kyrgyzstan and TajikistanEFSD presents assessment of potential impact of natural disasters on  debt sustainability of Armenia, Kyrgyzstan and Tajikistan
Armenia is considering appointing attache in Silicon ValleyArmenia is considering appointing attache in Silicon Valley
Astana proposes joint investment programmes in Yerevan Astana proposes joint investment programmes in Yerevan 
Armenia, Kazakhstan have unrealized economic potential - premier Armenia, Kazakhstan have unrealized economic potential - premier 
Armenia, EU discuss expansion of economic cooperation Armenia, EU discuss expansion of economic cooperation 
Transavia airline starts operating route Lyon-Yerevan-LyonTransavia airline starts operating route Lyon-Yerevan-Lyon
EAEU and its economic principles should not be mixed with political  ambitions - Nikol PashinyanEAEU and its economic principles should not be mixed with political  ambitions - Nikol Pashinyan
Armenia, Australia to strengthen cooperation in high-tech field Armenia, Australia to strengthen cooperation in high-tech field 
Leasing EXPO -2024 officially opened in YerevanLeasing EXPO -2024 officially opened in Yerevan
Araratbank to double leasing portfolio by end of 2024Araratbank to double leasing portfolio by end of 2024
Armenian, Kazakh passenger and cargo carriers to be exempted from  road and environmental taxes on reciprocal basis Armenian, Kazakh passenger and cargo carriers to be exempted from  road and environmental taxes on reciprocal basis 
Economy Ministry jointly with Armenal, develop schemes to diversify  sales markets for enterprise`s productsEconomy Ministry jointly with Armenal, develop schemes to diversify  sales markets for enterprise`s products
Read more


Exchange rates
29.04.2024
RUB4.17-0.05
USD387.81-0.27
EUR415.62-0.67
GBP485.890.32
CAD284.05-0.11
JPY24.880.13
CNY53.560.01
CHF425.460.12