Algoma, Nova Create Cement Carrier JV
Canada’s Algoma Central Corporation 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.
Under the deal, 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,” Soerensen continued.
As disclosed, the move is driven by the increasing demand for modern efficient cement carriers as infrastructural projects gain momentum in developing regions, by infrastructure renewal in mature markets, by consolidation among major cement producers and by the need to renew an aging fleet.
Under the terms of the agreement, 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.