Algoma Central Corporation (Algoma) (TSX: ALC), a leading provider of marine transportation services, yesterday announced that NovaAlgoma Cement Carriers Limited (NACC), has acquired a 25% ownership interest in JT Cement (JT Cement), joining KGJ Cement Holdings AS (KGJ) and Erik Thun AB (Thun) of Sweden in the cement company which owns a fleet of seven smaller specialized pneumatic cement carriers.
The investment will expand NACC’s global footprint into the Northern European market where KGJ and Thun have a strong presence and will provide additional strength and flexibility to the fleet’s customers.
“This investment will allow us to each apply our experience and knowledge in the pneumatic cement carrier market to create additional shipping solutions to meet the needs of customers,” said Ken Bloch Soerensen, President and CEO of Algoma Central Corporation. “We look forward to working with our new partners to create new opportunities for the JT Cement fleet.”
The daily operations of the JT Cement fleet will not change as a result of the NACC investment, with the vessels continuing to be commercially managed by KGJ’s office in Bergen, Norway.
“The addition of NACC to the ownership group of JT Cement will strengthen our team and provide opportunities for further growth in the Northern European region,” said Petter Tronstad, Chief Executive Officer of KGJ Cement. “We welcome this opportunity to increase the flexibility available to our valued customers.”
About NovaAlgoma Cement Carriers Limited
In January, 2016, Nova Marine Carriers SA and Algoma Central Corporation created NovaAlgoma Cement Carriers. The fleet comprises pneumatic cement carriers that utilize a compressor and pump system to load and unload cement powder. This operation is very clean, with essentially no discharge to the atmosphere. Cement shipping is a regionalized market with generally smaller vessels servicing large global manufacturers that support infrastructure investment.
About JT Cement
JT Cement, based in Bergen, Norway, operates a fleet of seven specialized cement carriers primarily servicing major cement providers in Northern Europe.
About Algoma Central
Algoma Central Corporation is a publicly traded company which operates the largest fleet of dry and liquid bulk carriers on the Great Lakes - St. Lawrence Waterway, including self-unloading dry-bulk carriers, gearless dry-bulk carriers and product tankers. Algoma also owns ocean self-unloading dry-bulk vessels operating in international markets. Algoma has expanded into international short sea markets through it 50% interests in NovaAlgoma Cement Carriers and NovaAlgoma Short Sea Carriers. Algoma Central trades on the Toronto Stock Exchange under the symbol “ALC”.
Source: Algoma