Nairit to refund $15 million in unpaid salaries by late 2014

PanARMENIAN.Net - Nairit will fully refund $15 million in unpaid salaries by late 2014, the chemical plant spokesperson Anush Harutyunyan said.

She also confirmed reports of employee layoffs. “At the first stage, 400 employees will be dismissed, with new contracts to be inked with the indispensible workers,” Aysor.am quoted her as saying.

Armenian government approved a draft resolution for handover of a part of Nairit CJSC assets to Vorotan Cascade of Hydroelectric Power Plants in late July.

The draft resolution stipulates for handover of 53.27% of Nairit-2 CJSC’s assets of AMD 7320.8 million and 3.5967% of Nairit Plant’s assets of AMD 983.4 million to Vorotan Cascade for debt, with the debt of Armgazprom that runs Nairit to be considered repaid.

The cabinet ministers also ruled that budget loans and other liabilities of Armgazprom to the Armenian finance ministry will be repaid by handing a part of its assets over to the government. The right of claiming all the accounts receivable to the defense ministry, Tech-Stepanakert Gas Pipeline and 46.73% of Nairit-2 CJSC’s assets is included here as well.

As a result, 46.73% of Nairit-2 CJSC and Tech-Stepanakert Gas Pipeline will be owned by the Armenian energy and natural resources ministry and run by the energy minister.

Nairit was the only chloroprene rubber production plant in the Soviet Union. The plant was closed in 1989 for environmental reasons and partially resumed operations in 1992.

In 2001, some production facilities were separated from the plant, with a debt-free enterprise 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. In April 2010 the plant ceased operating.

Energy and Natural Resources Minister Yervand Zakharyan said earlier that the matter would be settled in accordance with the law on closed joint stock companies.

The Vorotan Cascade is a series of three hydroelectric power plants aituated on the Vorotan River in southern Armenia. It generates 1.16 billion KWt-hour annually and accounts for about 15 percent of Armenia's power capacity providing energy for 250,000 homes.

On January 29, 2014, the U.S. Contour Global Hydro Cascade and the Armenian government inked a $180-million sale purchase deal for Vorotan Hydro Cascade’s assets.