Seoul, South Korea-based Dongwon Industries is planning to build a 20,000-metric-ton, land-based Atlantic salmon farm using Salmon Evolution’s flowthrough farming technology.
The farm is being planned for an 11,500-square-meter site in Yangyang, Gangwon-do, in the northeast corner of South Korea, with an opening date set for 2021, and an initial price tag of KRW 200 billion (USD 168.1 million, EUR 142 million), according to Korea IT Times. Located on the East Sea, the farm will draw in sea water via continuous circulation, using technology identical to that being installed in Salmon Evolution’s Atlantic salmon farm being built in Indre Harøy in Hustadvika municipality, near Ålesund in Central Norway, which will eventually have annual production of 36,000 metric tons (MT).
“During the fierce global food resource war, we have established our own domestic salmon farming complex to secure stable and sustainable fisheries resources,” Dongwon Industries CEO Lee Myung-woo, said. "We plan to foster it as Asia's largest fisheries bio-industrial complex in the future."
The recent passage of the Aquaculture Industry Development Act in South Korea has allowed large companies to enter the aquaculture sector, according to The Korea Daily. However, South Korea’s entire annual consumption of salmon in 2018 was 38,000 MT, though consumption is increasing in the country, the newspaper reported.
Adjacent to the farm, Dongwon will also construct a processing facility and research and development center “to unify the entire process from the production of salmon to manufacturing and distribution, and directly manage the quality of salmon,” according to Lee.
The new facility will incorporate Internet of Things (IoT), information and communication technology, and big data technology, along with real-time monitoring and control of water temperature and quality, an unnamed official from Dongwon Industries told the newspaper.
“It makes sense to go beyond [wild-catch fishing] by creating an onshore salmon complex and move into rearing fish on a more sustainable basis,” the official said. “We will set up and standardize all processes from salmon production, manufacture, and distribution.”
In July, Dongwon entered into a partnership agreement with Salmon Evolution for a minority stake in the Romsdal, Norway-based firm. Dongwon will invest NOK 50 million (USD 5.7 million, EUR 5.1 million) for a 9.7 percent stake in Salmon Evolution. That is in addition to Dongwon’s contract with Salmon Evolution to aid it in installing its flowthrough technology in its farm in South Korea.
This week, Salmon Evolution announced it has engaged DNB Markets, Pareto Securities AS, and Sparebank 1 Markets AS to conduct private placement of up to 100 million new shares at a subscription price of NOK 5.00 (USD 0.56, EUR 0.47) per share, with the goal of raising up to NOK 500 million (USD 56.2 million, EUR 47.5 million).
The offering values the company at around NOK 600 million (USD 67.4 million, EUR 56.9 million) based on the 119,731,088 shares currently outstanding in the Company.
The company also announced it expects its application to be listed on the Oslo Stock Exchange to be approved.
Photo courtesy of Dongwon Industries
