July 5, 2006

Clean Seas Tuna to expand production with US$5 million acquisition

South Australia-based Clean Seas Tuna is expanding its operations with a US$5 million acquisition of an aquaculture company in the same state.

Clean Seas Tuna said it had signed a contract to buy the privately owned SAAM Group of Companies, which owns the only other kingfish hatchery in South Australia and a grow-out facility.

The acquisition would boost Clean Seas' kingfish production from 400 tonnes last fiscal year to 2000 tonnes next fiscal year.

Managing director Marcus Stehr said SAAM's facilities had the potential to grow 1600 tonnes of kingfish but were currently using less than half that capacity. He intends to fully utilise the excess capacity after the acquisition.

This would mean the company would account for more than 80 percent of the state's production.

The acquisition would help Clean Seas meet burgeoning demand, which has been outstripping supply, said Clean Seas chairman Hagen Stehr, adding that the deal would give the company more control over its export and marketing positions.

Stehr noted that outbreaks of bird flu and mad cow disease in recent years had contributed to a significant rise in global seafood consumption. 

Meanwhile, dwindling wild fish stocks and resulting fishing quotas mean there is a growing reliance on offshore fish farming, Stehr said.