A new 50:50 joint-venture (JV) company, Crystal Nordic, has been formed by Nordic Tankers and Borealis Maritime, through which the two owners will operate their ice-classed stainless chemical tankers.
Crystal Nordic will control a fleet of 15 stainless steel ice-class 1A/1B chemical tankers of between 4,000 and 11,400 dwt, which are currently operated by Nordic Tankers and the Crystal Pool, the companies said today.
The JV is expected to begin operation in the first quarter 2016, subject to regulatory approval, and will focus on servicing Europe’s oil and chemical industry, particularly in the Baltic Sea and the northwest Europe regions.
The synergy aims to create operational efficiencies by reducing the number of ballasting and idle days, improving utilisation and enabling new voyage combinations, a statement said today.
The partnership will cover a larger geographical area and a wider range of cargo sizes compared to that covered by the individual companies, which the two say will enhance their customer offering.
“Capturing these efficiency gains will enable Crystal Nordic to become highly competitive while at the same time operating at the strictest safety and quality standards,” said Per Sylvester Jensen, Nordic Tankers’ CEO, in a statement.
“The partnership is an important step in Nordic Tankers’ growth strategy to obtain critical mass in core markets. The strong consolidation-move will simultaneously improve our offering to customers and strengthen the financial sustainability in all our global activities.”
Crystal Nordic will be incorporated and headquartered in Copenhagen and will operate under the Danish tonnage tax system. Commercial activities in Nordic Tankers’ Helsinki office will be transferred to JV office in Copenhagen. Crystal Pool staff will be offered positions in the new Crystal Nordic.
The JV company will have its own board, management, commercial and operations teams. It managing director will be Jan Eghøj, who is currently vice-president, global operations at Nordic Tankers.