Nordic Aqua Partners Receives Chinese Investment For Farmed Atlantic Salmon

Credit: Levchenko Andrii/Shutterstock

Nordic Aqua Partners (NOAP) has sold a number liking successful its China subsidiary to section investors arsenic nan business seeks to standard output of farmed Atlantic salmon.

Oslo-listed NOAP said it has received 300m yuan ($42.1m) successful return for a 20% liking successful Nordic Aqua (Ningbo) Co. to thief money nan completion of nan 2nd shape of its land-based salmon-farming cognition successful nan metropolis of Ningbo.

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The finance, from 2 unnamed Chinese investors, will besides support shape 3 of nan project, nan plans for which will beryllium finalised adjacent year.

Phase 1 has already been completed pinch nan first salmon harvest “successfully executed” successful April past year. The scheme is to summation yearly output from a predicted 8,000 tonnes to 20,000 tonnes astatine Nordic Aqua (Ningbo), which was group up by nan genitor institution successful 2018.

NOAP said successful a connection coming (25 September) that pre-engineering assessments for shape 3 will beryllium completed adjacent twelvemonth pinch nan purpose to commencement building precocious successful 2026 aliases early successful 2027.

In an accompanying first-half results announcement today, NOAP said nan first harvest from nan shape 3 farming task is expected successful 2029.

The institution added nan finance will bolster Nordic Aqua Ningbo’s “position arsenic nan starring onshore RAS (Recirculating Aquaculture System) and land-based Atlantic salmon level successful China – uniquely positioned to meet nan country’s request for safe, sustainable, and locally produced protein”.

NOAP’s CEO Ragnar Joensen said: “This marks a awesome strategical milestone for Nordic Aqua.

“Our long-standing collaboration pinch nan Chinese institutions goes backmost to nan very opening of Nordic Aqua Ningbo. The preamble of 2 respected entities arsenic strategical number partners represents a earthy improvement of that cooperation.”

In nan longer term, NOAP said it will measure nan action of a nationalist listing successful China aliases Hong Kong via an IPO for Nordic Aqua Ningbo. That would, nan institution said, supply a “de-risked way to rate travel scale, operational leverage, and semipermanent worth creation successful nan world’s largest and fastest-growing seafood market”.

Reflecting nan first stages of nan Nordic Aqua Ningbo project, nan genitor group posted a first-half nett nonaccomplishment of €14.35m (-$16.84m), widening from a €1.71m nonaccomplishment a twelvemonth earlier.

Revenue was up 58% astatine €7.39m. The salmon harvest, still from shape one, was 955 tonnes, up from 523 tonnes a twelvemonth earlier.

Operating EBITDA remained successful nan reddish to nan tune of €1.27m, compared to a corresponding nonaccomplishment of €1.98m. EBIT was reported arsenic a €6.6m nonaccomplishment versus an almost €2m loss.