November 9, 2018
Skretting may shut down UK salmon feed mill by 2nd quarter of 2019
Leading aquafeed firm Skretting announced Tuesday, Nov. 6, that it has started a process of consultation with employees on plans to cease production in the UK by the end of April 2019.
This move, according to the Norwegian company, is aimed at reducing the overcapacity in the highly competitive salmon feed market, and better utilise the company's existing production facilities in Europe. It said it had no plans to stop production in other markets and that it will continue to pursue its growth strategy.
"Unfortunately, we are experiencing unsustainable market conditions in the UK. With a new large feed plant becoming operational in Scotland early 2019, the total feed capacity in the region is expected to exceed the total market by more than 50%. This is driving down prices, leading to an unsustainable commercial environment", explained Therese Log Bergjord, CEO Skretting.
"We have therefore made the decision to start consulting with our employees on a proposal to cease feed production in the UK", she added.
She said that under the plan, all locations including two production sites will close down, and around 100 employees may become redundant.
Skretting, the aquaculture arm of Nutreco, operates in 19 countries where it manufactures and delivers feeds from hatching to harvest for more than 60 species. Its total annual production volume of feed is more than 2 million tonnes.
