Billion-krone battle at Andøya as Andfjord Salmon moves against main contractor.
Andfjord Salmon has submitted a claim exceeding NOK 1 billion ($99.0 million) against its main contractor, AF Hæhre & Contur Ans, alleging gross negligence and wilful breach of contract during the construction of the company’s land-based facility at Kvalnes, Andøya.
The company said the claim reflects previously communicated budget increases, including the NOK 500 million ($49.5 million) capex revision announced on 28 May, as well as earlier adjustments. According to Andfjord Salmon, the contractor recommended the construction methods used but failed to deliver the work within the agreed cost framework. The claim cites insufficient cost control, inadequate project management and prioritisation of work, incorrect invoicing, and what the company characterises as wilful breach of contract.
Andfjord Salmon has withheld further payments to the contractor pending the outcome of the claim.
The company said its farming operations continue as normal. Over the past two months, it has released smolt with a total value of NOK 1.1 billion ($108.9 million) into pools K0 and K1, reporting high survival and strong growth.
Pool K0 was completed in 2022 and pool K1 in September 2025. Construction of pool K3 is close to completion, while the next new pools required for biomass splitting and release will not be needed until spring or summer 2026.
Andfjord Salmon has opened discussions with alternative contractors to complete pools K2 and K4 as part of its ongoing build-out. Mobilisation costs for replacing the current contractor are estimated at approximately NOK 20 million ($2.0 million). The company said the change is expected to have a non-material effect on production plans.
Andfjord Salmon is developing a land-based flow-through farming system on Andøya. In its first production cycle, the company reported a 97.5 percent survival rate and a feed conversion ratio of 1.05.
