Algoma Central enters cement carrier JV with Nova Marine

Cement carriers in Nova Marine Carriers current fleet include the Yan A Cement carriers in Nova Marine Carriers current fleet include the Yan A

JANUARY 15, 2016 — Cement carriers could prove to be one specialized sector of shipping ripe to generate a few shipbuilding orders.

St. Catharines, ON, headquartered Algoma Central Corporation reported today that it has entered into a joint venture agreement with Nova Marine Holding SA of Luxembourg and its subsidiaries 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.
 
Algoma says that the demand for modern efficient cement carriers continues to increase globally. The growth is fueled 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 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."

He noted that Algoma currently provides technical and operations management services for three cement carrying vessels on the Great Lakes on behalf of major cement producers."

"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, on the satisfaction of certain conditions precedent, Algoma will acquire a 50% interest in the existing cement carrier fleet owned by Nova, which consists of 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.

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.

Want more? Subscribe now!

News from NASDAQ