JSC “Latvijas kuģniecība” (Latvian Shipping Company – LASCO) has founded 100 per cent daughter company LASCO Investment to take care of LASCO investment allocation and investment management business development. The newly established company’s share capital is LVL 19 million and it planned to place investment in non-shipping related industries and companies in order to secure business risk diversification and strengthen its asset base in the prevailing global economic crisis situation.

“LASCO performance results over the last few years demonstrating solid annual profit of tens of million LVL approves that the company’s strategy to invest in medium - range tanker fleet has been correct. As the result of focused business operations LASCO has accumulated significant financial resources providing prerequisites for further long-term investment. Having assessed the downturn in the world economy at present and the gloomy recovery forecasts in the nearest future, it is uncertain to target investment only for the development of our core business,” points out Raivis Veckagans, LASCO Vice-president.

In order to ensure successful growth of LASCO Group in long term the Group’s Management Board has started development of its risk management strategy providing for investment of unconfined financial resources in other safe and non-shipping related investment sectors.

LASCO Investment Ltd. is established on the basis of the existing LASCO daughter company Kuģu menedžments Ltd., which in the result of reorganization has acquired two other 100% daughter companies of LASCO – Jūrnieku mācību centrs and Kuģu remonta bāze. Kuģu menedžments equity is being enlarged by LVL 18 million by LASCO financial investment into its share capital. Simultaneously the name of Kuģu menedžments Ltd. is changed to LASCO Investment Ltd.