A120860

SalmoBreed Salten begun to produce salmon eggs at it's new land-based facility

We are pleased to announce the commencement of production of salmon eggs at SalmoBreed Salten, new land-based breeding facility in Salten, Norway. Salten is located in Northern Norway where the salmon production base is growing fast. The new facility was built with a £40 million (€44.7 million/$51.6 million) investment over the past two years and will allow Benchmark to serve this growing region as well as the rest of Norway and international markets.

The Salten facility has been built to the highest standards of technology and biosecurity, and is the most modern salmon egg production site in the world. This allows Benchmark to supply the global market with biosecure eggs year-round, “a significant advantage for producers only possible with land-based production,”

SalmoBreed Salten is part of Benchmark, world leader in salmon genetics and the world leading supplier of salmon eggs. The Company is committed to delivering technologically advanced products and solutions to drive the sustainable development of aquaculture. Developing environmentally friendly, biosecure, land based production is a critical element in reducing the impact of disease on the salmon industry, contributing to long term sustainable growth.

Today’s announcement is the culmination of a two year, £40m investment, delivered on time. SalmoBreed Salten facility will increase Benchmark’s in-house capacity by 75% allowing the company to capitalize on its leading market position and the strong growth fundamentals of the industry. Benchmark currently outsources part of its production to meet growing demand for its products. The new facility will enable Benchmark to bring production in-house enhancing profitability.

Sales of fertilised eggs will commence in November 2018 and additional fish will be brought into the facility to ramp up volumes throughout 2019. As anticipated, initial sales will benefit the 2019 financial year, with full production capacity expected by 2021.

The fundamentals for salmon farming continue to be very attractive. Global demand for salmon has grown by 6-7% p.a. in recent years and is expected to increase substantially over the next decade from countries including America and China where consumption per capita is low, but growing as a result of increasing health awareness and a growing middle class. This growth and a continuous effort to increase efficiency in the industry will continue to drive demand for robust genetics.

Malcolm Pye, Benchmark CEO says: “The opening of our new facility in Salten on time is a very important milestone for Benchmark which will allow us to capitalize on our leading market position in salmon genetics and the favorable long-term market trends in the industry. We expect it to contribute additional revenues at higher margins going forward.”

Stig I Aksjon

General manager of SalmoBreed Salten, Stig Joar Krogli collecting salmon eggs at new land-based breeding facility in Salten, Norway

main.css loaded.