December 29, 2020

Norwegian companies to establish RAS operations in China

Two new recirculating aquaculture system (RAS) salmon-farming projects backed by Norwegian firms are set to be launched in the coming year in China.

Stavanger, Norway-based Norsal appears to be the first major foreign venture into the salmon farming business in China since Canada-based AgriMarine commenced on-land farming of steelhead in China a decade ago.

Earlier this month, the company announced its intention to build a RAS salmon-farming project in the Yantai Economic and Technological Development Area, at a cost of US$400 million, according to China Daily. The project will be built in two phases, with the first aiming for an output of 10,000 tonnes and the second upping the farm's output to 30,000 tonnes.

On 2 December, Nordic Aqua Partners was admitted to trading on Euronext Growth after a private stock offering that raised €55.1 million (US$45.1 million). The company said it plans to start construction on a RAS salmon farm located in Ningbo, China, in January 2021, with its first harvest planned for fall 2023.

"The prospect for land-based salmon farming in China is far-reaching and we are all very enthusiastic and optimistic about being a first-mover into the world's largest seafood market and about the potential for Nordic Aqua Partners A/S," NAP board chairman Ragnar Joensen said in a press release.

"We believe the opportunity is indefinite and with the fantastic support of our staff, investors, bank syndicate, Chinese authorities and advisors, we are finally at the step of making great history. Now, the company is ready to realise a fantastic project in China and in less than three years, we will deliver truly fresh, high-quality and tasty salmon to the Chinese market."

The farm will be built in three phases, with the first phase having capacity for 8,000 tonnes of production, the second doubling capacity to 16,000 tonnes, and the third phase offering expansion up to 40,000 tonnes.

"Over time, the company sees further scale opportunities from replication near Beijing and Hong Kong. Furthermore, expansion potential within a very attractive downstream value chain for Atlantic salmon in China with the possibility of realising a high EBIT per kilogramme," Joensen said.

- SeafoodSource