ALGOMA CENTRAL CORPORATION Completes Acquisition of Upper Lakes Group Interests in Seaway Marine Transport


TORONTO, April 15 /CNW/ - Algoma Central Corporation ("Algoma") (TSX:ALC) announced today that it has completed the previously announced acquisition from Upper Lakes Group Inc. ("ULG") of its partnership interest in Seaway Marine Transport and related entities (collectively, "SMT") along with the vessels and assets owned by ULG and its affiliates and used by SMT in its Great Lakes - St. Lawrence Waterway dry-bulk freight business.

Under the terms of the transaction, Algoma has acquired 11 vessels outright and has acquired ULG's interest in four jointly owned vessels. In addition, Algoma acquired ULG's interest in a fifth vessel that is currently under construction in China. This vessel, which is expected to arrive in Canada in July, 2011, will be named the Algoma Mariner.

"This is an historic day for Algoma Central Corporation", said Greg Wight, President and CEO of Algoma. "With this acquisition we will enhance our focus on our domestic dry-bulk marine transportation segment and the very important task of fleet renewal based on the recently announced acquisition of new Equinox Class vessels.  We welcome the shipboard personnel of the vessels acquired from Upper Lakes and the SMT personnel to Algoma as we look to the future with great excitement."

One Vision, One Purpose and One Team!

About Algoma Central Corporation

Algoma Central Corporation owns and operates the largest Canadian flag fleet of dry and liquid bulk carriers operating on the Great Lakes - St. Lawrence Waterway. With this transaction completed Algoma's Canadian flag fleet consists of twenty-one self-unloading dry-bulk carriers, including the new self-unloader presently under construction, twelve gearless dry bulk carriers and seven product tankers. Algoma has recently announced a significant investment in state of the art new Equinox Class vessels for domestic dry-bulk service. The Equinox Class will provide much needed improvements in operating efficiency and environmental performance.  Algoma also has interests in ocean dry-bulk and product tanker vessels operating in international markets. Algoma 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.

Forward-looking statements

Certain information included in this press release is forward-looking, within the meaning of applicable securities laws. Much of this information can be identified by looking for words such as "believe", "expects", "expected", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words. In particular, this press release includes forward-looking statements pertaining to the intended use of net proceeds of the offering of the Debentures. Algoma believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.

Forward-looking statements are based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, risks associated with the uncertainty associated with accessing capital markets and the risks related to Algoma's business, including those identified in Algoma's Annual Information Form for the fiscal year ended December 31, 2010 on pages 11 to 15. Reference should be made to this additional information prior to making any investment decision. Forward looking statements contained in this press release are made as of the date hereof and are subject to change. Algoma assumes no obligation to revise or update forward looking statements to reflect new circumstances, except as required by law.

SOURCE Algoma Central Corporation

For further information:

Greg D. Wight, CFA      Wayne Smith
President and Chief Executive Officer   Senior Vice-President, Commercial
(905) 687-7850      (905) 687-7898

Profil de l'entreprise

Algoma Central Corporation

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