April 27, 2011

Nutreco invests in upgrade of fish feed capacity in Norway

Nutreco is investing EUR27 million (US$39.6 million) to upgrade its fish feed plant in Averøy, Norway. The investment in the Averoy plant consists of an upgrade of the grinding facility, a new intake line and expansion of both storage capacity and operation premises.

This investment will enable Skretting, Nutreco's fish feed business, to meet future market demand for high quality feed for salmon and to maintain its market leader position in Norway. The Norwegian fish feed market has grown with an average of 8% a year from 2006-10.

Knut Nesse, Nutreco's Chief Operating Officer of Aquaculture, said: "This investment clearly demonstrates our commitment to support the growth of aquaculture in Norway and to maintain our market leader position in this fish feed market. Growth is expected to continue at a high rate in the coming years, especially in salmon feed. This upgraded plant allows us to realise the benefits of the introduction of our MicroBalanceTM technology, which enables us to replace the limited raw materials fishmeal with vegetable alternatives. The production capacity of the Averøy plant will be increased by 20,000 tonnes. Skretting intends to invest in additional capacity in the near future, based on the expected growth in the market."

Skretting is the worldwide No.1 salmon feed producer with a global market share of about 36%, and has a leading position in fish feed for other species. It has 20 fish feed factories and produces approximately 1.3 million tonnes of fish feed in 2010, of which about 72% was feeds for salmon and seawater trout.