ARMENIAN MINISTER FOR ENERGY AND NATURAL RESOURCES: GLOBAL ECONOMIC CRISIS SEVERELY AFFECTED GIANTS OF ARMENIAN CHEMICAL INDUSTRY

ArmInfo
2009-03-20 14:35:00

ArmInfo. Due to the global financial crisis, both the chemical industry
giants in Armenia Nairit Plant and Vanadzor Chemical Complex have faced
severe problems, Armenian Minister for Energy and Natural Resources
Armen Movsisyan told ArmInfo commenting on the claim by the Electric
Networks of Armenia (ENA) CJSC against Nairit Plant.

The minister said both the enterprises have faced sales problems
and are reluctant to suspend activity until the global tariffs are
stabilized. In the meanwhile, maintenance of engineering process at
these enterprises also requires serious energy resources. As a result,
Nairit Plant accumulated debts to the ENA. ‘This claim will not change
anything. The electric networks are first of all interested in activity
of big enterprises to extend their sales’, the minister said. He
highlighted that the leadership of ENA CJSC is constructive. The
parties agreed that Nairit will pay the current debts. As regards the
remaining, a schedule of repayment is being drafted. ‘It is a normal
process especially for such big and serious companies. In addition,
Nairit Plant is one of the largest electricity and gas consumers’,
the minister said.

To recall, Electric Networks of Armenia CJSC (ENA) claimed declaring
bankrupt the only producer of rubb er in Armenia, Nairit Plant,
ENA Press Secretary Margarita Grigoryan told ArmInfo Thursday.

She said the plant’s debt to the ENA as of March 1 2009 totaled
963 million drams ($2.6 million on current rate). ‘Nairit Plant
has never paid for electricity timely and has accumulated big debts
over the last three years, which made us lodge against the company’,
she said. The claim was submitted to the court in February 2009.

At the request of ArmInfo, Press Secretary of Nairit Plant Anush
Haroutiunyan commented on the situation and called the problem a ‘soap
bubble’. She said the plant has already launched production and the
first output is expected in the mid April. ‘We will have enough funds
to pay for the electricity used. Over 20-30 claims were submitted with
demand to declare us bankrupt but no claim has been satisfied yet’,
she said.

Anush Haroutiunyan mentioned that the plant has been idling since the
end of 2008 because of the fall of world demand for rubber due to the
global economic crisis. In 2006 a 90%pct stake in Nairit Plant was
sold to Rainoville Property Limited for $40 million, the remaining
10pct stake belongs to the government.