Norwegians buy ship repair yard

KLAIPEDA (BNS) - Norway's Western Invest, the new owner of the Lithuanian ship repair company Vakaru Laivu Remontas, took part in a meeting of the company's board for the first time Feb. 22. The meeting was convened to discuss the ship repairing yard's prospects and management issues.

The Norwegians paid $12.46 million, or 60 percent of the total $21.25 million, for three privatized Klaipeda-based companies - Vakaru Laivu Remontas, Baltech and Klaipedos Elektros Remontas electrical repair company last week.

Western Invest is due to pay the rest of the money for the three companies to the Lithuanian State Assets Fund within four years.

The Norwegian investors now own 78.75 percent in Vakaru Laivu Remontas, with the remaining stake held by Azovlitas, a joint Lithuanian-Ukrainian venture.

Western Invest's board chairman John Mosvold said they planned to invest $20 million into the company in five years. The funds will be used for the yard's reconstruction and development of the technological process.

Mosvold said the investors intended to maintain the company's current business of ship repairing, reconstructing and building.