Miami, Florida, U.S.A.-based Atlantic Sapphire announced via a stock exchange filing on Oslo Børs that it has secured the insurance settlement after a fire at the company’s farm in Denmark.
The fire hit the company’s “Bluehouse” recirculating aquaculture system facility on 15 September, resulting in a total loss of the structure and the fish being raised at the facility. Eight months later, the company has secured a cash settlement of DKK 180 million (USD 25.5 million, EUR 24.1 million).
According to the stock exchange filing, at the time of the fire, the book value was DKK 210 million (USD 29.7 million, EUR 28.2 million) – or USD 33 million (EUR 31.2 million) at the exchange rate as of September 2021. The insurance process identified DKK 30 million (USD 4.2 million, EUR 4 million) worth of equipment and buildings undamaged by the fire – hence the payout of DKK 180 million.
Atlantic Sapphire said the payout will be used on the company’s larger RAS farm in Miami and not to rebuild in Europe.
“The company is free to decide how the insurance proceeds are to be used,” Atlantic Sapphire said. “The board has decided that the settlement proceeds are to be allocated to U.S. operations and construction.”
Atlantic Sapphire's executive team told SeafoodSource in January the company is still planning to reach its goal of farming 220,000 metric tons (MT) of salmon each year at its Miami facility by 2023. In its stock filing addressing the insurance payout, the company said it has “ensured stable operations” at the Miami facility and is in the middle of significant expansions to help it achieve its production goal.
“The current situation in the world further emphasizes the importance of short and lean value chains. In the U.S., the company is perfectly positioned to leverage this,” Atlantic Sappire said. “The U.S. is currently importing approximately 98 percent of its consumption of Atlantic salmon and the company believes there will be an increasing focus and preference for domestically produced food in the years ahead.”
Photo courtesy of Atlantic Sapphire
