YEREVAN. - Back in 2010, we proposed a technology for Nairit rubber plant, which would significantly reduce the prime cost of chemical rubber, Mr Garegin Hakobyan, spokesman of Armenia-based Ara Powers Motors company, told Armenian News – NEWS.am.

The company proposed Austrian GE Jenbacher equipment to produce electricity and heat, both of which are needed to manufacture large amounts of chemical rubber, the staple product of the plant and one of the key export commodities for Armenia (one of the country’s top 20 export items) before the plant closed down in 2010.

The technology was supposed to use the syngas and heat for electricity and vapor. Consequently, the plant could save a lot, Hakobyan said.    

Before approaching the plant, Ara Powers Motors had tested the technology for 8 months in Austria.

Nairit management said they were impressed, and agreed to consider buying 2 pilot engines in 2011, with later plans to buy a total of 20 to utilize the entire syngas. But then the talks were halted with no explanation.

“Right now we are able to provide a pilot cogeneration engine which would cost around 3,5 mln euro. If it fails to deliver the efficiency we designed, we commit ourselves to dismantle and take it back. That is, the Government, which is now in charge of the plant, will bear no risk. We hope they could consider the project, especially because they keep saying they are eager to discuss any reasonable proposal which would help restore the plant to production. Well, here’s one for a start. And we mean what we say, because we’ve got a lot of designing and testing behind our words,” Hakobyan stressed.

In 2006, the Government of Armenia sold 90% of the Nairit plant shares to a British consortium, Rhinoville Property Limited, for $40 mln. The investors failed to appear to Armenian community or the press ever since.

In 2006, the CIS Interstate Bank extended to Rhinoville a $70 mln line of credit, which was not repaid. In January 2014, the bank successfully claimed Rhinoville’s 90% shares, while the remaining 10% stayed with the Government.

On July 28, Mr Yervand Zakharyan, Armenia’s Minister of Energy and Natural Resources, announced that the government has concluded negotiations with the Interstate bank, which agreed to cede the unpaid debts of Rhinoville. In the near term, the Government is expected to officially reinstate full ownership of the plant and seek a new investor.