Norway’s Grieg Seafood is set to invest Nkr130m ($12.4m) in a new value-added facility close to Oslo airport.
The facility will process salmon from Grieg’s northern region of Finnmark and its southern region of Rogaland, being “optimally placed for smooth logistics to the markets by truck, boat, train or air freight”, according to the seafood business.
The factory will have an annual processing capacity of 10,000 to 12,000 tonnes, with an option of increasing the capacity to 20,000 tonnes if needed at a later stage.
Grieg Seafood will start processing its fish in the new facility during the summer of 2025. It is its first in-house value-added factory.
Erik Holvik, chief commercial officer, said: “Grieg Seafood aims to take one step closer to the customer and the market. With this tailor-made facility, we will make high-quality products from our fish with the most modern equipment available. In addition, we will be able to cut significant amounts of CO2 emissions from the transportation of our products to the world.”
The Norwegian salmon farming business aims to process 25% of its global production volume by 2026, according to a statement.
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“So far, we have worked with external partners to process some of our fish. We will continue these partnerships. With the new processing facility, we see opportunities for additional partnerships with salmon farmers and customers. It will be an exciting journey,” added Holvik.
Just Food has contacted Grieg Seafood to clarify the products that will be manufactured at the plant.
In the company’s fourth-quarter results for its fiscal 2023, Grieg Seafood made an EBIT loss of Nkr67m, compared to an EBIT of Nkr156m in the corresponding period the year prior.
Harvest volume was 21,767 tonnes during the period, down from 21,186 tonnes in 2022, which gives an operational EBIT loss per kilogram of Nkr3.1. This figure stood at Nkr7.4 in the final three months of 2022.
CEO Andreas Kvame said that the parasite spiro, winter ulcers and jellyfish impacted survival rates and operational efficiency in Finnmark and led to reduced volume, increased handling costs and lower price achievement.
He added: “I am not satisfied with the results, and we have taken measures to tackle the challenges both in the short and medium term.”
Grieg Seafood made a full-year operational EBIT of NKr780m, with an operational EBIT of NKr10.8 per kg.
