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Royal Greenland Take Over Cuxhaven Roe Factory

by the Fish Site Editor
17 March 2010, at 12:00am

GREENLAND - As a result of taking over the activities and assets of the roe factory at Cuxhaven, Royal Greenland (RG) now own the entire value chain, strengthening the company's position in the market for Greenlandic lumpfish roe.

The fishing group has been the sole supplier of Greenlandic lumpfish roe to the Cuxhaven factory for many years. As of the 15th of March, however, RG have gone a step further and have purchased the assets and activities of Westfalia-Strentz Gmbh from Icelandic Seafood. RG's takeover includes all employees and the factory's machines, and the company have also taken over tenancy of the harbour-front factory.

The factory's primary product is lumpfish roe in jars. The strategy behind RG's takeover is to acquire all links in the value chain, right from raw material capture, through processing to sales. RG was at one time the world's leading supplier of intermediates based on manufacture in Greenland. Now, RG will control the entire process, meaning that they can sell directly to the customer who will then benefit from greater security of supply, increased flexibility and a product that is consistently of a uniformly high quality.

The product fits into RG's portfolio perfectly, and many of the customers are already well-known to RG from retail and food-service operations. Operations will be managed from Wilhemshaven such that the synergies involved can be utilised as fully as possible.

CEO Flemming Knudsen is very pleased with the investment made: ”Because we're based in Greenland, RG is one of the few companies in the world with access to the world's best lumpfish roe which comes from the seas around Greenland.

"Now that we own the entire value chain we control the entire process and can make sure that the quality of the product the customer gets is always extremely high. Not only that, we also gain access to the industry's most advanced production facilities, and because we're also taking on the plant's staff we'll also gain access to their know-how and experience from many years of roe manufacture.”

the Fish Site Editor