Contractor switch at Kvalnes as Andfjord seeks to limit impact of AF Hæhre dispute.
Andfjord Salmon has engaged new contractors to continue construction at its Kvalnes facility, after a disputed $100 million claim involving former contractor AF Hæhre & Contur prompted a sharp fall in the company’s share price and renewed investor scrutiny of project execution and financing.
The stock has dropped more than 20 percent over the past month, including a 10 percent decline on Wednesday, as the market assesses the potential impact of the legal dispute and the company’s NOK 750 million senior secured bond, according to iLaks. Investors have focused in particular on the bond’s covenants, liquidity requirements and the upcoming first repayment in spring 2026.
Against that backdrop, Andfjord Salmon has reached an agreement with Entreprenør Harald Nilsen, with concrete specialist Nornebygg as subcontractor, to take over completion of pools K2 and K4 in the current build-out phase at Kvalnes. Preparatory work is already under way and on-site construction is scheduled to begin in January 2026. Several existing subcontractors will remain on the project to support the transition from the previous main contractor.
“We are pleased to reach agreement with contractors that have extensive experience from concrete works, used to dealing with the climatic conditions in Northern Norway and can start more or less immediately. This is also in line with our announcement on 3 December that the change of contractor is expected to have a non-material effect on our production plans,” said Martin Rasmussen, CEO of Andfjord Salmon.
The company has agreed a timeline that schedules completion of K2 and K4 for spring or summer 2026. Andfjord Salmon estimates mobilisation costs of approximately NOK 20 million associated with replacing the former contractor.
Entreprenør Harald Nilsen and Nornebygg recently completed a major concrete project for Statnett, experience Andfjord Salmon says positions them well to carry out the remaining work on K2 and K4. The company will also enter into dialogue with Harald Nilsen regarding potential collaboration on future construction phases at Kvalnes.
Andfjord Salmon will present an operational update and its third-quarter 2025 financial results on 16 December.
