LASCO Orders 4 tankers

Hereby JSC Latvijas kugnieciba (Latvian Shipping Company - LASCO) informs that on 2 November 2007 the Company signed contracts with Hyundai Mipo Dockyard Co., Ltd. (HMD) on building four additional middle-range (MR) tankers, thus implementing the Group’s Tanker Fleet Further Development Plan that provides for the expansion of the given segment by approximately 200 thousand deadweight tons (DWT). The implementation of the above-mentioned project has been unanimously approved by JSC Latvijas kugnieciba Supervisory Council that also conceptually consented to the sale of the Group’s five reefer vessels and investment of the released funds into modern newbuildings.

The implementation of LASCO tanker fleet expansion project involved the investigation and assessment of various shipyards, as well as a careful appraisal of all the proposals received. As a result, the work group of LASCO shipping experts acknowledged the proposal presented by Hyundai Mipo Dockyard Co., Ltd. to be the most suitable for LASCO’s project implementation, as one of the significant factors mentioning also the Company’s previous successful cooperation with HMD: in 2007 LASCO took the delivery of four 37,000 DWT ice-classed tankers built by the Korean shipyard.

The Shipbuilding Contracts signed between JSC Latvijas kugnieciba and Hyundai Mipo Dockyard Co., Ltd. provide for the construction of four ice-classed tankers of 52,000 DWT each. Similar to the rest of LASCO fleet’s newbuildings, the above-mentioned tankers will be built to comply with all EU marine safety requirements and international conventions. The project requiring about USD 200 million investments will be financed both through equity (including funds to be released as a result of selling LASCO’s less profitable ships) and debt.


Source:Seanews