May 21, 2024 | 02:23 GMT +7

  • Click to copy
Thursday- 13:16, 14/09/2023

Nova Sea moving ahead with construction of $190 million facility despite new 25% Norwegian salmon tax

(VAN) Nova Sea announced it was putting the investment in the new plant on hold when the tax was announced last year.
1DXL9549-scaled

The investment of NOK 2 billion (€174.5 million/$187.2 million) is the largest single investment ever seen in the Luroy municipality.

Norway-based salmon famer Nova Sea is pressing ahead with its plan to build a new NOK 2 billion (€174.5 million/$187.2 million) salmon plant in Lovund, Norway, after putting the project on hold in the wake of the passage of Norway's controversial new 25% tax on the country's fish farmers.

Work on the plant is slated to begin next April with the first salmon harvest in 2026, the company said in a statement Tuesday.

"The old facility is outdated and cramped," said Nova Sea CEO Tom Eirik Aasjord. "We must have a new harvesting plant to keep up with developments in the industry."

On Sept. 29, the day after the government announced the introduction of ground rent tax in aquaculture, Nova Sea announced it was putting the investment in the new plant on hold.

The company will increase harvesting capacity considerably with the new facility and, depending on the level of activity, the plant will create between 10 and 40 new jobs.

The investment of NOK 2 billion (€174.5 million/$187.2 million) is the largest single investment ever seen in the Luroy municipality.

Earlier this summer, Nova Sea-owned smolt producer Helgeland Smolt also said it will begin construction of its new NOK 1 billion (€87.2 million/$93.6 million) production facility in Kilvika in Meloy, Norway.

"We have now gone through a year of great uncertainty as a result of the ground rent tax," said Aasjord. "But we want to develop our local community, provide work for our suppliers, have good quality in the fish we sell, and take good care of our employees."

"It is far more important to us than the prime rate, and we are incredibly happy to have a board that chooses to invest so aggressively in a time where there is still a lot of uncertainty."

However, Aasjord noted, the investment is a big financial burden for the company now that the tax has been introduced.

"Now we are making a formidable boost to secure both the farming industry and the supplier industry in the region. We expect the politicians to see the benefit in being part of the journey ahead."

HD

intrafish

Capturing investment opportunities in Asia’s poultry supply chain

Capturing investment opportunities in Asia’s poultry supply chain

(VAN) After 2 tough years, a leading bank is suggesting that entrepreneurs and businesses should look at capturing investment opportunities in Asia’s poultry supply chain.

Are seed-sowing drones the answer to global deforestation?

Are seed-sowing drones the answer to global deforestation?

(VAN) Drones are being used to replant degraded areas of forest in Brazil – how successful have they been so far?

US soy exporters off to worst new-crop start in 23 years amid China’s absence

US soy exporters off to worst new-crop start in 23 years amid China’s absence

(VAN) The upcoming U.S. soybean harvest is expected to approach record levels, but exporters had sold practically none of it as of last week, a typical time when new-crop sales may start to roll in.

Sticky trick: new glue spray kills plant pests without chemicals

Sticky trick: new glue spray kills plant pests without chemicals

(VAN) Edible oil droplets trap bugs without the harm to people and wildlife that synthetic pesticides can cause.

Taiwan’s largest publicly-listed hotel group commits to cage-free eggs

Taiwan’s largest publicly-listed hotel group commits to cage-free eggs

(VAN) The Silks Hotel Group – Taiwan’s largest publicly-listed hotel group – has announced a cage-free sourcing policy.

FAO highlights the potential of AI and the digital revolution to transform the world's agrifood systems

FAO highlights the potential of AI and the digital revolution to transform the world's agrifood systems

(VAN) Director-General QU Dongyu spoke at the Business Federation of the G7 in Rome

Big lobbying groups spend $400M on farm bill: Report

Big lobbying groups spend $400M on farm bill: Report

(VAN) Pharmaceutical, manufacturing and big agriculture interests have spent more than $400 million lobbying Congress on a new farm bill, a new report has found.

Read more