Algoma Central Corporation and Nova Marine Increase Investment in NovaAlgoma Joint Venture With Five Vessel Acquisitions
Algoma Central Corporation (TSX: ALC) and Nova Marine announced an increased investment in their global short sea shipping joint ventures, NovaAlgoma, by acquiring three cement carriers from KGJ Cement in Northern Europe and two handy-size bulk carriers from Swire Bulk Holdings Pte. Ltd. of Singapore. The vessels will be strong additions to NovaAlgoma’s already diversified vessel portfolio, which includes cement carriers, mini-bulkers and handy-size bulk carriers.
“We carefully consider each opportunity for growth and these vessel purchases fit perfectly into our long-term plan for sustaining a profitable business alongside our partners at Nova Marine,” said Gregg Ruhl, President and CEO of Algoma Central Corporation. “The three cement carriers will support increasing cement requirements and significant global infrastructure investments. The two handy-size vessels will be part of our active international sales and purchase vessel platform, which has delivered strong returns since 2018,” concluded Mr. Ruhl.
“The cement carriers will supply additional capacity for NovaAlgoma Cement Carriers (“NACC”) and provide tailored and flexible short sea logistics solutions for our customers in this market,” said Vincenzo Romeo, Chief Executive Officer at Nova Marine. “Working together with our partners at Algoma, we continually review market conditions and add incremental investments so we can strategically evolve with fluctuations in industry demand,” added Mr. Romeo.
The first of the three cement vessels, the NACC Providence, previously named the Glory Atlantic, was delivered in early February. The second vessel will follow in early March and the third is expected to be delivered in late June. All three vessels will join the NACC fleet serving a growing list of clients around the world.
The two handy-size bulk carriers, to be named the Sider Athena and the Sider Bear will join the NovaAlgoma Bulk Holdings fleet in late April and will be commercially managed by Nova Marine.
Source: Algoma Central Corporation, Nova Marine