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Grieg Seafood takes over Placentia Bay salmon project

10 February 2020, at 2:00pm

Grieg Newfoundland Salmon (Grieg NL) has announced that it has been acquired by Grieg Seafood ASA, in a deal that could be worth up to could be worth up to 1.55 billion kroner (£130 million).

Greig NL is currently constructing a high-end recirculating aquaculture system (RAS) facility, has had three licences for seawater sites in Placentia Bay approved and has eight more in the application process.

The company hopes to harvest 30,000 to 45,000 tonnes a year from the region over time.

Grieg Seafood is the world’s seventh largest salmon farming company with production in the North and South of Norway, Scotland in the UK and British Columbia in Canada. The company will this year harvest 100,000 tonnes of salmon globally.

In a press release Grieg Seafood said it will “make significant investments into the Newfoundland region in the coming years to develop state-of-the-art salmon farms and ensure responsible farming practices… [bringing] stable and sustainable jobs to the coastal communities of Placentia Bay for years to come.”

The company has stressed that all of Grieg NL’s development plans and agreements with local companies or governmental authorities will be honoured and continued. Plans for service and processing are unchanged. Newfoundland processing company Ocean Choice International will remain a valued local partner in the project.

The Placentia Bay Aquaculture Project will provide at least 37 direct jobs on land and 101 direct marine jobs.

Grieg Seafood CEO, Andreas Kvame, said: “We will bring our best practices, technology and experience to develop the Placentia Bay farming region with the lowest possible environmental footprint. We will use the highest industry standards with transparency and integrity. We are committed to be a good partner to the residents of Burin Peninsula and Placentia Bay areas from Fortune to Swift Current, St. Lawrence, Long Harbour, Marystown, Petite Forte and all points between. We are here to grow and hope to become an integral part of the local economy and community. We also look forward to continuing the close partnership with Ocean Choice International”

The management and staff of Grieg NL welcome today’s announcement of its acquisition by Grieg Seafood ASA.

Knut Skeidsvoll, general manager, Grieg Newfoundland Salmon Ltd, said: “I am very pleased that Grieg Seafood has deemed our Newfoundland Project worthy of inclusion in their family of regions. I am particularly proud of the accomplishments of our local team over the past 5 years in building this Project. This is also a wonderful statement for the bright future of the aquaculture industry in Newfoundland.”

Per Grieg Jr, initiator and part-owner of Grieg NL, is also the majority owner of Grieg Seafood together with his family in the Grieg Group. Per Grieg Jr is the chairman of the board of Grieg Seafood. Commenting on the acquisition, he said: “I have been deeply impressed by the people that I have met in Newfoundland over the last years, and their commitment to local value creation. I will continue my engagement in the Placentia Bay salmon farming project through my role as chairman of the board of Grieg Seafood. Grieg Seafood is one of the world’s leading salmon farming companies, and there are no other salmon farmers more competent to take the project to the next phase in a responsible way.”

Martin and Blaine Sullivan of Ocean Choice International said: “The Placentia Bay Aquaculture Project is important to our continued growth. We are pleased that a salmon farming company with the right farming expertise as well as ability to make the needed investments have taken on the project. We are confident that Placentia Bay salmon farming will be a success.”