Armenian Minister of Energy and Natural Resources Armen Movsisyan said USD 400-500mln is needed to upgrade Nairit plant.

The term of tender announced for an operator will expire on June 15, 2011, Movsisyan told the June 2 governmental sitting.

Referring to the current situation at the plant, which employs 3,074 people, the Minister noted that after the plant’s privatization, the greatest volume of production was recorded in 2007-2008, when the price for gas was $54 per thousand cu m. According to him, the price continuously increased after it, what has had a negative impact on the plant. “It resulted in growth of output’s prime cost and forced the plant to look for new sales markets. But the main problem referred to restoration of chloroprene rubber production,” he said, adding that the global financial crisis has also considerably affected the plant’s operation.

Movisyan said the program is ready and envisages huge investments. “Under the announced tender, we are looking for an international operator to implement it. Investments at the amount of USD 400-500mln are required to finally solve the problem of Nairit, so that it achieves international standards,” noted Movsisyan.

Armenian Prime Minister Tigran Sargsyan said for his part that transparency is the best way of activity, adding that international structures, namely IMF and Eurobank.