Displaying items by tag: Algoma Central Corp

Canada/Luxembourg: Algoma Central Corp has entered into a joint venture agreement with Nova Marine Holding SA of Luxembourg and its subsidiaries to create a global fleet of cement carriers to support infrastructure projects worldwide. Algoma will own 50% of the joint venture, which will be named NovaAlgoma Cement Carriers (NACC).

"We are very excited about the opportunity this investment with Nova presents," said Ken Soerensen, President and Chief Executive Officer 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, 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. Growth is fuelled by demand 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," said Wayne Smith, Senior Vice President, Commercial, of Algoma. "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, 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, Chief Executive Officer of Nova Marine Holding SA.