June 9, 2010

US seafood processor set for expansion

Frozen seafood supplier Icelandic USA intends to build an 87,700 square feet addition to its headquarters in north Newport News for US$8.4 million.

Icelandic USA vice president Rick Barnhardt said the expansion will incorporate all operations under one roof and prepare for the firm's possible future growth. Demand growth would cause them to hire more employees for its Newport News, Virginia, location, he said.

"Last year was a tough year for the restaurant industry, but we expect that it will rebound in a couple of years," Barnhardt noted.

The investment may include a US$400,000 loan from the city's Economic Development Authority (EDA). The company plans to begin building the addition this fall and complete by spring 2011.

Icelandic USA supplies fish and other seafood to Red Robin, Cracker Barrel and Perkins, Barnhardt said, among other chain restaurants, plus fast food chains Checkers and Jack in the Box.

He added that the company is trying to increase its products sold to grocery stores. The new addition would be equipped to tackle expansion of product lines currently including flounder, shrimp, crab cakes and tilapia.

Icelandic will include offices and also replace its leased warehouse space where it now stores its seafood imported from Iceland, Norway, China, Thailand and Alaska, Barnhardt informed.

Icelandic USA is a wholly-owned subsidiary of the Icelandic Group, based in Reykjavik, Iceland. The company is the biggest importer of frozen groundfish for the foodservice industry in the US.