(TSX : ALC)
ST. CATHARINES, ON,
Jan. 15, 2016 /CNW/ - Algoma
Central Corporation ("Algoma" – www.algonet.com) today announced
that it has entered into a joint venture agreement with Nova Marine
Holding SA of Luxembourg and its
subsidiaries (together – "Nova") to create a specialized global
fleet of cement carriers to support infrastructure projects
world-wide. Algoma will own 50% of the joint venture, which is to
be named NovaAlgoma Cement Carriers or NACC.
"We are very excited about the opportunity this investment with
Nova presents," said Ken Soerensen,
President and CEO of Algoma. "NACC is an excellent example of
a global short-sea shipping business that shares many
characteristics with our domestic dry-bulk business. In fact," Mr.
Soerensen continued, "Algoma currently provides technical and
operations management services for three cement carrying vessels on
the Great Lakes on behalf of major cement producers."
The demand for modern efficient cement carriers continues to
increase globally. This growth is fuelled by demands for
infrastructure in developing regions, by infrastructure renewal in
mature markets, by consolidation among major cement producers and
by the need to renew an aging fleet. "We are very
pleased to be able to work with our experienced partner, Nova, in
this segment" Wayne Smith Senior VP,
Commercial of Algoma said. "We see opportunities in both existing
markets and globally for the renewal of cement carrier
vessels."
Under the terms of the agreement, upon the satisfaction of
certain conditions precedent, Algoma will acquire a 50% interest in
the existing cement carrier fleet owned by Nova and comprising
three pneumatic cement carriers now in operation and two additional
vessels under construction. These five vessels are and will be
deployed in various regional markets in Asia and Europe.
"The cement business is becoming more global and consolidated.
We are excited by the prospects of this venture because it aims to
create a dedicated group to serve the cement industry in its global
logistic needs", said Vincenzo
Romeo, CEO of Nova Marine Holding SA.
About Algoma
Algoma Central Corporation operates the largest Canadian flag
fleet of dry and liquid bulk carriers on the Great Lakes – St.
Lawrence Waterway, including 18 self-unloading dry-bulk carriers,
seven gearless dry bulk carriers and seven product tankers. Algoma
also has interests in ocean dry-bulk vessels operating in
international markets. Algoma provides ship management services for
other ship owners and owns a diversified ship repair and steel
fabricating facility active in the Great Lakes and St. Lawrence regions of Canada. In addition, Algoma owns and manages
commercial real estate properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.
About Nova
Nova's wholly owned subsidiary, Nova Marine Carriers SA,
headquartered in Lugano, Switzerland, operates a varied fleet of modern
bulk carriers, cement-pneumatic and belt self unloading vessels
ranging from 5,000 dwt up to 57,000 dwt. With over fifty
ships under control, Nova specializes in bulk traffic in the
Mediterrenean, Atlantic and Persian Gulf and in Italian
cabotage.
SOURCE Algoma Central Corporation