(TSX : ALC)
ST. CATHARINES, ON, Nov. 25, 2015 /CNW/ - Algoma Central Corporation ("Algoma" – www.algonet.com) is pleased to announce that the contracts with Uljanik d.d. of Croatia to build three, 740 foot Seaway Max self-unloading bulk freighters have become effective.
Under the terms of the conditional contracts announced by Algoma on September 10, 2015, Uljanik d.d. was required to delivery security for the contractually required construction instalments that is acceptable to Algoma. This security was delivered by the yard and approved by Algoma on November 24, 2015.
"The design work and preliminary construction of the vessels has already begun" said Ken Bloch Soerensen, President and CEO of Algoma. "We now have a total of five ships under construction at the Uljanik Group's 3Maj shipyard in Rijeka, Croatia and we look forward to working closely with Uljanik on the construction of these vessels," Mr. Soerensen continued.
On November 19, 2015, Mr. Soerensen and Al Vanagas, Senior Vice-President, Technical for Algoma, accompanied by Canadian Ambassador to Croatia, Daniel Maksymiuk and Gianni Rossanda, President and CEO of Uljanik d.d., met with Croatian President, Kolinda Grabar-Kitarovic in Zagreb to celebrate the new contracts
These new Equinox Class ships will feature a boom-forward configuration designed to provide greater flexibility in certain delivery situations. The vessels will have an overall length of 225.55 metres (740 feet) and a beam of 23.77 metres (78 feet), qualifying as Seaway Max size ships. The vessels will carry 29,300 tonnes at maximum Seaway draft.
The new Equinox vessels will have all of the features of the existing Equinox design, including the exhaust gas scrubber technology pioneered by Algoma on the Great Lakes in its first Equinox Class gearless bulk carriers. The first vessel is scheduled for delivery in early 2018 with the balance of the ships delivered by the end of that year.
About Algoma Central Corporation
Algoma Central Corporation operates the largest Canadian flag fleet of dry and liquid bulk carriers 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
For further information: Ken Bloch Soerensen, President and CEO, 905-687-7885; Peter D. Winkley, CPA, CA, Vice President, Finance and CFO, 905-687-7897