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Grieg Seafood acquires Newfoundland-based salmon producer

A leading global salmon farm company has plans underway for a recirculating aquaculture system (RAS) facility as part of its project in  Newfoundland.

Grieg Seafood ASA of Norway announced that it has acquired Grieg Newfoundland Salmon Ltd (Grieg NL). The project has a long-term annual harvest potential of 30,000 – 45,000 tons of Atlantic salmon.

The acquisition of Grieg Newfoundland AS strongly underpins the 2025 strategy. The first harvest will be in 2022/23, and the region is expected to contribute 15,000 tons of annual harvest by 2025.

The high-end RAS facility is currently under construction.

The freshwater RAS facility is planned to include a hatchery, a smolt facility and three post-smolt modules with a potential annual capacity of 7,000 tons upon completion.

The project also includes exclusivity for salmon farming in Placentia Bay, which has a farmable area bigger than the Faroe Islands.  The project currently comprises licenses for 11 sea sites. Three licenses have been approved, three more expected to be approved in 2020.

“For the past few years, we have focused on utilizing our existing licenses with success. This year, we will reach our target of 100,000 tons,” Andreas Kvame, chief executive officer of Grieg Seafood, was quoted as in a press release. “Now we are ready for the next step on our growth journey. By developing salmon farming operations in Newfoundland, using cutting-edge technologies at all stages of the production process, we are strengthening our position as a global leader in sustainable salmon farming.”

The US market is the world’s largest and fastest-growing market for Atlantic salmon. However, only a third of US demand is currently met by North American production, Kvame said.

“We already have a position in this market through our operations in British Columbia, where we have attained significant sales and marketing experience. With close proximity to important markets on the East Coast of the US, this acquisition significantly strengthens our US market exposure and opens up for synergies with existing operations,” he explained.