Lunenburg, Nova Scotia, Canada-headquartered High Liner Foods, a leading North American value-added frozen seafood company, recently announced its commitment to invest US $10 million in Andfjord Salmon Group AS, a land-based salmon farming operation on the island of Andøya in the Arctic archipelago of Vesterålen, Norway.
In exchange for the funding, High Liner Foods will receive an approximately 4.5% share ownership in Andfjord. The investment, which will be made from cash from operations, forms part of a larger capital raise by Andfjord.
“Salmon is an important growth species for High Liner Foods, and we believe that land-based aquaculture will become an important component of the global salmon supply chain that will help bridge the gap between supply and demand,” said President and CEO Paul Jewer. “This modest investment will give us a platform to gain operational insights and experience in land-based aquaculture as part of our ongoing efforts to meet the growing consumer demand for sustainably sourced and eco-friendly seafood products.”
Jewer continued: “We feel that Andfjord is an ideal partner that possesses the proven technology and experience High Liner Foods can work with and learn from, as we focus efforts on growing our Atlantic Salmon business in North America.”
Participation in the private placement allows the company to gain exposure to this innovative approach to salmon farming. Andfjord has ambitious expansion plans, targeting a production capacity of 40,000 tons by 2030 and has outlined a growth strategy that involves scaling up production capacity while significantly maintaining lower operating expenses.
