Nairit plant in Yerevan in process of bankruptcy

Nairit plant in Yerevan in process of bankruptcy

Nairit synthetic rubber plant, located in a Yerevan suburb is now  in the process of bankruptcy, finance minister Vardan Aramyan said today during a parliamentary discussion on next year’s draft budget, Arka news agency reports.

Earlier this month Armenia's ministry of energy infrastructures and natural resources announced a tender for private investors to re-launch Nairit chemical plant's production facilities. Applications are accepted until January 20, 2017. 

Nairit has been standing idle since March 2010. The Armenian government has repeatedly said that the plant will be re-launched as soon as it finds an investor. The re-launch is estimated to cost $200 to $300 million.

Aramyan said his personal opinion is that  if a plant  is unproductive,  to continue subsidizing it from the state budget  is wrong. According to him, the plant has now 360 people on its payrolls, many of whom do not go to work, do not create added value, but are paid regularly monthly wages. "If a plant has no future or is not competitive, it is better to direct public funds to more productive spheres", - said Aramyan.