Nordlaks $460 million investment freeze continues to thaw

by
Editorial Staff

Norway’s largest privately owned salmon producer resumes Phase 2 of it project on Børøya

Norwegian salmon producer Nordlaks has announced the resumption of the second phase of its development project on Børøya in Stokmarknes, where the company’s headquarters are located.

The project, which began in 2018, was among $460 million in investments put on hold by the company in 2022 due to the introduction of the new cash flow-based ground rent tax.

Director of Operations at Nordlaks Produkter, Tomas Tømmerås, emphasized the necessity of the project for the company’s future, stating, “We are at a crossroads and must either build new or carry out extensive maintenance in order to renew ourselves and adapt to future requirements.”

The first phase of the development included the expansion of the site, a case factory, a new cooling terminal, and a water treatment plant. The second phase, initially planned for completion in 2025, is now expected to be finished in 2027. It involves constructing a new processing plant, a filleting department, and an office building.

One key feature of the new fillet department will be the ability to produce pre-rigor products, meaning the processing of day-fresh salmon, according to a release from the company. This development reflects Nordlaks Produkter’s commitment to modernizing its operations and adapting to emerging market demands.

Tømmerås addressed the delay, noting, “This is an investment that has been postponed for a year and a half. We are now moving on and dealing with the fact that everything apart from sea is not subject to ground rent tax and that normal tax rules apply.”

Details regarding the area, cost framework, and exact timetable of the project remain under discussion with contractors. Tømmerås emphasized the critical nature of this project for the company’s continuity, stating, “In the long run, the alternative would be to stop operating, and that is not an option for us. We will continue to be a community builder and food producer into the future.”

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