Danish seafood-processing firm Espersen is reevaluating its Grimsby, U.K.-based production setup after poor financial results in 2024.
The company acquired its Grimsby site in September 2023, purchasing the assets from Iceland Seafood International for just GBP 1,000 (USD 1,342, EUR 1,190) after the latter company said it suffered heavy losses and that stabilizing operations in the U.K. was taking longer and costing more than previously estimated. Local advocates in Grimsby were optimistic for the seafood sector in 2024 as investments came in, but 2024 ended up being a challenging year for some, including Espersen.
“For some time, Espersen has experienced a significant drop in production volume, largely due to lower demand caused by macroeconomic factors and rising prices on raw materials – particularly the price of Norwegian Atlantic cod, which has increased sharply both due to the sanctions on Russian raw materials, and in the last year, the reduced quotas in the Barents Sea," Espersen said. "This continued pressure on raw material pricing is now starting to be reflected in consumer prices and will further impact demand in the near term.”
Those factors, coupled with poor performance and operating losses from its Grimsby facility resulted in Espersen’s 2024 revenue dropping to DKK 3.3 billion (USD 499 million, EUR 442 million), down 4.7 percent compared to 2023. The decrease in revenue was coupled with losses of DKK 57 million (USD 8.6 million, EUR 7.6 million) for the year.
The company said that to ensure its long-term competitiveness and financial stability, it is initiating a “comprehensive evaluation” of its Grimsby production site – which includes the potential of closing the facility entirely.
“Espersen has an 88-year legacy of making difficult but necessary decisions to ensure our long-term sustainability. This is one of those moments where we must look ahead and make choices that safeguard our core business and future,” Espersen CEO Tino Bendix said.
The company said it originally acquired the Grimsby location with ambitions to build a stronger presence in the chilled segment, but market shifts and the investments the facility would require to bring it to profitability leave the company unable to continue as planned.
“Despite great efforts by the local team and positive steps taken, we do not foresee that the Grimsby production site will become financially sustainable in the foreseeable future with the current business plan. We now face a broader business reality where resources must be focused on our core operations,” Bendix said. “While we are exploring all possibilities, we do not have the time or financial flexibility to support the long ramp-up initially envisioned for Grimsby, and we have to adjust the business plan accordingly.”
The company said it has begun through consultations with its employees, and the company said Bendix was unavailable to comment as he focused on answering questions from the team in Grimsby.
“Our colleagues in Grimsby have shown dedication and resilience, and they have our deepest respect,” Bendix said in a release. “We will support them through this process with care and clarity.”
Espersen has already faced other difficult decisions in 2025. In March, the firm announced it was closing its Klaipeda, Lithuania-based processing facility and moving production to a site in Koszalin, Poland. Bendix and Espersen said that move was due to evolving market conditions and was necessary to realign production with the realities of the difficult market.
