May 30, 2014

According to the company, the move consolidates BioMar's position in the world's most advanced fish farming country.

BioMar has resolved to expand the company's output capacity in Norway by 140,000 tonnes of fish feed yearly, or by more than 30% relative to its current production capacity of about 430,000 tonnes. The company, which is owned by Danish industrial conglomerate, Schouw & Co., is the world's third-largest producer of feed for salmon and generates annual revenue of more than US$1.6 billion.

"Expanding our capacity is a major strategic move intended to consolidate our position in Norway. The Norwegian market is the most advanced of its kind in the world, and it's extremely important for us to have a strong position there. The overall Norwegian market is 1.7 million tonnes today, so our capacity expansion equals just over 8% of the total market consumption," said BioMar's CEO, Torben Svejgård.

"Considering the attractive historic and expected market growth, this year projected at 6% or about 100,000 tonnes, there is an ongoing need for capacity expansion."

The new production line is expected to be operational in 2016. Based on preliminary analysis, the expansion is expected to take place at the existing plant at Karmøy.

"We completed a major expansion of our large plant at Myre in northern Norway only three years ago, and current considerations involve the pros and cons of having an independent new unit as opposed to optimising overall operations at an existing plant," Svejgård added.