Canada-headquartered Algoma Central Corp announced Friday that it has entered into a joint venture agreement with Nova Marine Holding SA of Luxembourg and its subsidiaries to create a specialised global fleet of cement carriers to support infrastructure projects worldwide. Algoma will own 50 per cent of the joint venture, which is to be named Nova Algoma 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."
"We are very pleased to be able to work with our experienced partner, Nova, in this segment" Wayne Smith senior commercial VP 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 per cent 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.