ST. CATHARINES, Ont.—Algoma Central Corp. has levelled its sights well beyond its traditional Great Lakes market with a new partnership.
The company has announced it has formed a 50/50 joint venture with Luxembourg-based Nova Marine Holding SA that will look to create a specialized global fleet of cement carriers. Dubbed NovaAlgoma Cement Carriers or NACC, the partnership will aim to support infrastructure projects world-wide.
“We are very excited about the opportunity this investment with Nova presents,” Ken Soerensen, the company’s president and CEO said. “NACC is an excellent example of a global short-sea shipping business that shares many characteristics with our domestic dry-bulk business.”
Soerensen noted Algoma already provides technical and operations management services for three cement-carrying vessels cruising the Great Lakes.
With demand for infrastructure expanding in developing regions worldwide, the company hopes to take advantage of the need for modern cement carriers on the high seas.
Upon the satisfaction of several conditions, Algoma will acquire a 50 per cent stake in Nova’s cement carrier fleet, which consists of three active pneumatic cement carriers, as well as two vessels currently under construction.
“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,” Vincenzo Romeo, CEO of Nova Marine Holding SA, said.
The partners intend to deploy the five ship to various markets in Asia and Europe.