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Atlantic Sapphire takes US$25M settlement for Denmark facility fire


(Image: Atlantic Sapphire)

Land-based aquaculture company, Atlantic Sapphire said it has agreed with agreed to a DKK 180 million (US$ 25 million) insurance settlement for a fire which destroyed its recirculating aquaculture system facility in Denmark, in September last year.

The company said it has decided to use the settlement proceeds for construction and operations needs of its United States RAS operations.

The book value of the facility at the time of the fire was DKK 210 million, or approximately $33 million and the the insurance process identified approxinately DKK 30 million worth of buildings and equipment that was left undamaged by the fire.

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Still reeling from a massive die-off at its RAS facility in Florida earlier in March last year, Atlantic Sapphire suffered another loss in September that year when a nightime blazed spread through its RAS facility in Hvide Sande, Denmark.

The fire was just one of a series of mishaps for the company’s first quarter in 2021 has been dubbed the “lost quarter.”

Atlantic Sapphire said its operations in the US has stabilized.

“Atlantic Sapphire’s core business is expanding production in the US where the company sees the highest return on investment. The company has now ensured stable operations in the US and is in the middle of a significant expansion of the production capacity,” a press release from the company said. “The US 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.”