The Board of Directors at Marine Harvest ASA has approved the development of a new feed factory in Scotland with a total feed capacity of around 170,000 metric tons (MT) and the potential for further expansion.
Investment in the factory is estimated at GBP 80 million (EUR 110.7 million; USD 121.2 million) and will be constructed in phases over 2016-2018, with approximately 95 percent of the capital expenditure falling within 2017-2018.
The investment is subject to acquiring land, obtaining relevant permissions and consents. The specific location is yet to be decided.
Construction of the feed plant is planned to start in 2017, with expected completion during the first half of 2018.
Marine Harvest expanded into fish feed with its first factory opening at Bjugn, Norway, during 2014. Today the factory covers approximately 80 percent of Marine Harvest’s Norwegian feed requirements.
Currently, all of Marine Harvest’s salmon farming centers in Scotland, Ireland and the Faroe Islands are 100 percent supplied by external feed companies. In a statement, the company said a second feed factory was in line with the strategy of being a fully integrated protein company.
All existing external feed supply contracts in these areas will expire during the first half of 2018.
“After careful consideration, Scotland is viewed as the best alternative due to its ability to fully serve our internal feed requirements in a cost effective manner. The factory will be positioned to deliver feed to our operations in Scotland, Ireland and the Faroe Islands, but this may change or develop over time. In addition the range of feed types will be broadened to include starter feed for freshwater and organic feed for our Irish operations,” said the statement.
