Algoma Announces Agreement to Acquire Ocean Going Self-unloaders

(TSX : ALC)

ST. CATHARINES, ON, Nov, 10, 2015 /CNW/ - Algoma Central Corporation ("Algoma" – www.algonet.com) is pleased to announce that its wholly owned subsidiary, Algoma Shipping Ltd., has reached an agreement with Klaveness Selfunloaders AS, a subsidiary of Klaveness Ship Holding AS (KSH) to purchase the ocean going panamax self-unloaders MV Balchen and MV Baldock.  Marbulk Shipping Ltd., 50% owned by Algoma, also reached an agreement with KSH to acquire the handymax size self-unloader Balder.   These vessel purchases are subject to technical due diligence.

"We are very pleased with these additions to our ocean going self-unloader fleet," said Wayne Smith, Senior VP Commercial.  The Balchen is a modern, fuel efficient panamax size self-unloader delivered from the shipyard in September, 2013.  This ship was designed by Deltamarin Ltd., of Finland, designers of Algoma's Equinox Class of new Canadian Great Lakes bulk carriers.  The Baldock, also panamax size, became a self-unloader in 2006 with the construction of a new forebody.  This ship is a virtual sistership to Algoma's M.V. Honourable Henry Jackman, another panamax forebody project (completed by Algoma in 2007).  The Balder is a handy-max size self-unloader built in 2002.  The Balder features an exhaust gas scrubber system that has recently been commissioned. 

"These new additions to the Algoma fleet more than offset recent retirements to our ocean going self-unloader fleet and help to realize our objective to expand this segment of our operations," said Ken Soerensen, President and CEO.  These additions to Algoma's ocean going self-unloader fleet follow closely the addition of the MV Algoma Integrity (formerly the Gypsum Integrity) a 2009 built handy-max self-unloader added in April, 2015, Mr. Soerensen added.

About Algoma Central Corporation

Algoma Central Corporation operates the largest Canadian flag fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Waterway, including 18 self-unloading dry-bulk carriers, seven gearless dry bulk carriers and seven product tankers. Algoma also has interests in ocean dry-bulk vessels operating in international markets. Algoma provides ship management services for other ship owners and owns a diversified ship repair and steel fabricating facility active in the Great Lakes and St. Lawrence regions of Canada. In addition, Algoma owns and manages commercial real estate properties in Sault Ste. Marie, St. Catharines and Waterloo, Ontario.

SOURCE Algoma Central Corporation

Ken Bloch Soerensen, President and CEO, 905-687-7885; Peter D. Winkley, CPA, CA, Vice President, Finance and CFO, 905-687-7897