Greenwich, Conn., based Diamond S Shipping Inc. (NYSE: DSSI) and Hellerup, Denmark based Norden A/S (CPH:DNORD) have formed a strategic partnership called DiaNor. It brings together two of the world’s largest product tanker operators to facilitate the commercial consolidation of the sector.
Diamond S will initially contribute 28 medium range (MR2) product tankers to the endeavor, which will be marketed and operated through the Norient Product Pool . Diamond S also intends to contribute its existing in-house commercial expertise in the product tanker market to NPP pool.
With the contribution of the DiaNor ships, the pool will manage approximately 150 tankers and become one of the largest operators of medium range (MR) product tankers in the world.
Craig Stevenson Jr., CEO & President of Diamond S, commented “We are pleased to further continue the much-needed consolidation of the tanker industry. The DiaNor partnership is an exciting new chapter for Diamond S. We believe it will create substantial value for both our shareholders and our customers. We have worked with Norden and NPP in the past and believe that they represent a state-of-the-art, world-class commercial organization. Adding our considerable capabilities to their extensive network should produce a clear leader in the product tanker space.”
Norden CEO Jan Rindbo said, “We are delighted to enter this partnership with Diamond S, which will further strengthen our ability to provide efficient global transport solutions to our product tanker customers. Diamond S has been a valued partner of Norden in the past and we look forward to what we can create together in the future.”
“We are convinced that the scale created by the combined fleets as well as the people competencies will create great value to our stakeholders,” says Søren Huscher, Head of Tanker Operator at Norden. “The strong values upon which we are both built will be the backbone of our joint efforts.”
The management of the combined fleet of around 90 MR2 product tankers will be handled from Norden’s existing office locations in the U.S., Singapore and Denmark and become one of the largest within the segment.