Danish seafood-processing firm Espersen has finalized a strategic evaluation of its Grimsby, U.K.-based processing facility and determined it will close the plant.
Espersen hinted that it was contemplating a shutdown in May after it saw a drop in production volume due to lower demand. The increased price of Norwegian Atlantic cod and sanctions on Russian raw materials were both factors, the company said.
“The outcome of the consultation process is not the one we had hoped for, but it reflects the business reality we must address,” Espersen CEO Tino Bendix said. “We are grateful for the open and constructive approach from our U.K. team, and we will now turn our full attention to supporting them and ensuring a smooth and responsible transition.”
The closure will not be immediate. Espersen said it still plans to honor its customer obligations and will continue delivering from the Grimsby facility under current agreements, barring any new agreements with its customers. With those agreements in mind, the company said it plans to cease production in November.
Espersen first acquired the Grimsby site in September 2023, purchasing the assets from Iceland Seafood International for just GBP 1,000 (USD 1,342, EUR 1,190) after ISI suffered heavy losses. Despite the low cost of purchase, Espersen said the company saw big losses from the facility, including decreased revenue and earnings.
Despite the closure, Espersen said the company will continue to maintain a presence in the U.K. market.
“While we are exiting production in Grimsby, we remain a trusted partner to our U.K. customers as we have been for decades before acquiring the plant in Grimsby. We are preparing to reestablish our U.K. sales office to support continued growth in this important market,” Bendix said.
As the company begins to wind the facility down, it said it plans to support the 115 employees who will be affected by the closure with outplacement assistance, counseling, and guidance on next steps.
“We are fully aware of the impact this decision has on our colleagues and their families, and we are deeply grateful for their contribution to Espersen and dedication in this process,” Bendix said. “We are committed to handling the closure with transparency, care, and respect.”
