GENERAL DIRECTOR: NAIRIT CHEMICAL PLANT TO START OPERATING TO ITS FULL CAPACITY IN EARLY MAY

/ARKA/
April 30, 2009
YEREVAN

Nairit chemical plant is to start operating to its full capacity in
early May, Vahan Melkonyan, general director of the plant, said at
a press conference on Tuesday.

"After 4.5-month idleness, the plant issued first products on April 25.

We will work to our usual capacity on May 5 or 10", he said.

He said that the plant’s average monthly output is 700 to 750 tons,
however actually monthly chloroprene rubber output ranges from 900
to 950 tons.

"This is quite large output, especially amid tension, controversies and
prices volatility on the market. But now the market is rallying. There
is the first wave of demand for such products", Melkonyan said.

The thing is that market prices for rubber and the plant’s sales
plummeted 2.5 times over the period between October 2008 and March
2009.

Melkonyan said that Nairit will retain its niche on the market,
even if supply doesn’t rally this year.

He said that capital investments totaled $40 million in 2007 and
2008. They are expected to remain the same by late 2009.

Melkonyan said that the plant administration hasn’t cut jobs.

More than 1,000 workers have already resumed working after the
forced layoff.

Nairit ceased operating on December 1, 2008 because of the global
crisis.

About 1 ,500 workers were sent to vacation. An anti-crisis program
aimed at supporting the business is now being implemented here.

Nairit was the only plant producing chloroprene rubber in the Soviet
Union’s territory.

The plant also produces various chemical products based on acetylene,
chloroprene and their derivatives.

In 1989, the plant was closed for environmental reason.

The work was partially resumed in 1992 and 1993.

In 2006, 90% of the company’s shares were sold to British Rhinoville
Property Limited for $40 million.

The remaining 10% belong to Armenian Ministry of Energy and Natural
Resources.

Rhin Eville Property Limited was established by Polish Samex,
U.S. Intertex and Russian Evrogaz.The plant built up its rubber output
by 20.6% in 2007 and 2008, compared with three previous years.