Grieg Seafood ASA is to close its value-adding processing facility in Shetland and its Pacific salmon production in British Columbia (BC), Canada.
The Norway-based salmon farming group temporarily discontinued processing in Shetland in the first-quarter of this year. The decision has now been taken to dispose of the operation and it will make a write down of approximately NOK 50 million (EUR 5.4 million; USD 6 million).
Grieg has seen its production costs spiral as a result of algae and lice problems, particularly on the west coast of Shetland. It has also been affected by low commodity prices in the U.K. market.
In BC, Grieg’s last coho generation – approximately 900 metric tons (MT) head-on-gutted (HOG) – was harvested in Q3. Revenues from coho sales have been lower than anticipated and costs have been higher, said the company.
Grieg’s total harvested volume in Q3 was approximately 19,500 MT HOG, including the coho volume.
In August, the group reduced its 2015 harvest forecast by 2,000 MT to 70,000 MT, saying its Norwegian volumes would be lower due to colder summer sea temperatures, but that there would be increased production in both Shetland and BC.
