Rigas kugu buvetava
Company Announcement

JSC 'Rigas kugu buvetava' informs about active working

'Production of floating power plants, scrubbers (flue gas collection filters) and wastewater collection systems, alongside building and repairing new vessels, will enable the Riga Shipyard to reach new horizons.' This vision for 2016 is conjured up by Mr Genadijs Slozkins, Head of the Shipbuilding Department of the Riga Shipyard, a joint-stock company. He points out that preparatory work has been carried out at an earlier stage, enabling the production and installation of new products hitherto not available from the Riga Shipyard. Namely, the Riga Shipyard has launched the so-called conversion programme which provided for the utilisation of production capacities not used for shipbuilding and ship repairs in the production of other products. 'The conversion programme already enables the Riga Shipyard not only to carry out modernisation of vessels and installation of new engines but also to carry out other works, such as extension of ships, development of technical designs for and production and installation of flue gas filters and ship wastewater collection systems,' G. Slozkins explains. He reminds that an EU Directive has been adopted aiming to reduce ship-source pollution from wastewaters and flue gasses, therefore all ships will eventually have to be fitted with a wastewater collection system and flue gas filters. 'Any vessels undergoing repairs at the shipyard will have to be fitted with both scrubbers and ship wastewater collection systems. However, all these units must first be designed and produced before they can be installed; after that, installation is just a question of technique,' G. Slozkins explains the process.

Production of floating power plants is planned to be started this year, too. A floating power plant producing electricity from sea swell has been built by the Riga Shipyard according to an order by Finnish company Vello previously. 'The power plant has been in operation for a few years now and experience has been acquired, resulting in conclusions as to the improvements to be made to the technical design of the plant,' says G. Slozkins. He stresses that this is not a one-off project. 'Overall, 10 such power plants are to be built offshore near the coast of England within the space of five years. This project is financed from the EU Structural Funds 2015 - 2020 Programme,' G. Slozkins explains.

The company focuses on the production of ready-made ships complete with equipment. 'Last year we got several new orders to build ships and hulls, these will be completed this year,' G. Slozkins says. He reminds that three fish farming vessels are to be delivered to customers from Norway in 2016. 'The Riga Shipyard will implement a number of shipbuilding projects awarded thanks to cooperation with Nordic companies. Namely, six hulls will first be built in Riga, then completed in the Nordic countries,' G. Slozkins says. He points out that this cooperation is mutually beneficial since it serves as a source of orders and good income for the Riga Shipyard, while enabling Nordic companies to develop faster.

Cooperation with Nexans, a company from Norway, will continue in 2016. 'An agreement has been signed for the supply of several coils of metal cable,' G. Slozkins says. He points out that the Riga Shipyard has submitted a bid for the supply of large-size steel structures in a procurement tender for a Tallinn supermarket; the results will be known in the spring of 2016. Similarly, the Riga Shipyard is looking forward to the results of a procurement tender for steel structures for the construction of a tunnel to an island off the coast of Germany in which the Riga Shipyard too has submitted a tender bid.

'All production capacities for ship repairs are already fully booked up for the first months this year,' G. Slozkins says. He says that two Tallink ships are likely to undergo repairs in Riga as well. He points out that a number of cargo ships are also planned to be repaired at the Riga Shipyard. 'A new project for the construction of two ferries which will be running between England and one of its islands is also planned to be started,' G. Slozkins adds. He confirms that development of the technical specifications of these ferries is under way and construction of the ferries may be started upon completion of the specifications. Overall, all of these developments will continue to contribute to the substantial improvement of the company's financial performance in 2016,' he concludes.

Janis Skvarnovics
Chairman of the Board of Directors
of 'Rigas kugu buvetava' JSC
t.+371 67353433

Rigas Kugu Buvetava AS issued this content on 21 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 10 February 2016 10:12:52 UTC

Original Document: http://www.nasdaqbaltic.com/market/?pg=details&instrument=LV0000100378&list=3&tab=news&news_id=281714