100 jobs to be axed by Norway salmon producer

The company wrote that the decision is based on an assessment of what best ensures the company's further development within the framework conditions set by the market and the Norwegian authorities. 

“We are doing this to strengthen the company for the future and ensure that Bremnes Seashore is a sustainable and robust player,” the statement says.

Chief executive Linda Litlekalsøy Aase said the decision to close down Salma, which produces hand-cut salmon loin and other products, was difficult but necessary.

“Salma has been an adventure that has put Norwegian salmon on the world map and created great pride in the entire organisation. But economic realities mean that we can no longer justify further investment in Salma,” she said.

Losing millions

Salma has been running at a loss in recent years. Forecasts show that this will continue, with losses in the order of several tens of millions of kroner annually. The market situation has changed, and high prices mean that not everyone can afford highly processed salmon products. This has made it challenging to achieve volumes that ensure profitability.

“Raw material prices have increased, and both internal and external costs have increased after we decided to invest in a new factory. The factory contains a new refrigerator, freezing facilities, a state-of-the-art fillet line and the Salma line. The first three will be further developed, while Salma production will unfortunately have to be discontinued,” explained Aase.

It would also have been an advantage if the authorities had better facilitated Norwegian ownership and processing in Norway, including by avoiding increased taxes and by strengthening the framework conditions for processing.

More money for farming

The closure of Salma production frees up resources to strengthen the focus on Bremnes Seashore's core business.

“To succeed in the future, we must be well equipped to ensure that the salmon we produce is healthy, grows well and maintains high quality. This requires investments in larger post-smolts, better shielding technology in the sea, upgraded reception facilities and, not least, more measures to improve biosecurity. Such investments are absolutely necessary to meet the future,” said Aase.

The closure of Salma production will result in more than 100 employees in the group being directly affected and is part of a larger process to reduce costs throughout the value chain and strengthen the company for the future.

“This is a very difficult message to give, especially now just before Christmas. We will ensure an orderly and fair process in close cooperation with the elected [employee] representatives,” said Aase.

An inspiring project

Bremnes Seashore owner Olav Svendsen said: “Salma has not only meant a lot to us as an organisation, but also to many other people. I would like to express my gratitude to everyone who has contributed to making Salma a product that has inspired both locally and nationally. The product has been an important part of Norwegian food culture, and we are proud of what we have achieved.

“These changes ensure that Bremnes Seashore is equipped for the future and will continue as a sustainable player in Norwegian aquaculture.”