Grieg Seafood invests US$12.4M in new value-added facility

NORWAY – Grieg Seafood, a Norwegian salmon farming company, is investing Nkr130 million (US$12.4 million) in a new value-added facility located near Oslo airport.

The facility will process salmon from Grieg’s northern region of Finnmark and its southern region of Rogaland. The location was chosen for smooth logistics to markets via truck, boat, train, or air freight.

The factory will have an annual processing capacity of 10,000 to 12,000 tonnes, with an option to increase it to 20,000 tonnes later.

The company revealed that it aims to start processing fish in the new facility during the summer of 2025, marking its first in-house value-added factory.

Erik Holvik, Chief Commercial Officer, stated that the facility is designed to bring Grieg Seafood closer to customers and markets.

“With modern equipment, the company plans to produce high-quality products while reducing significant amounts of CO2 emissions from transportation.”

In addition, Grieg Seafood aims to process 25% of its global production volume by 2026, and this investment in a processing facility is a step toward achieving that goal.

The company has worked with external partners for processing some of its fish, and it plans to continue these partnerships. The new processing facility opens up opportunities for additional collaborations with salmon farmers and customers.

In the fourth quarter of its fiscal 2023, Grieg Seafood reported an EBIT loss of Nkr67 million, compared to an EBIT of Nkr156 million in the same period the previous year.

The harvest volume during the period was 21,767 tonnes, with operational EBIT loss per kilogram at Nkr3.1.

According to the company, challenges faced included the impact of parasites, winter ulcers, and jellyfish on survival rates and operational efficiency in Finnmark. These challenges led to a reduced volume, increased handling costs, and lower price achievement.

CEO Andreas Kvame expressed dissatisfaction with the results and mentioned that measures have been taken to address the challenges in the short and medium term.

 Despite the challenges, Grieg Seafood reported a full-year operational EBIT of Nkr780 million, with an operational EBIT of Nkr10.8 per kilogram.

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