Grieg agrees split ownership of Newfoundland firm
Norwegian-owned salmon farming company Grieg Group and Canadian fishing and processing outfit Ocean Choice International (OCI) have finalised an ownership agreement for Grieg Newfoundland Salmon Ltd (Grieg NL), the company behind plans for 11 farms in Placentia Bay, on the south east coast of Newfoundland.
According to a graphic on Grieg NL's website, Grieg Group will own 80% of the company and OCL the remaining 20%.
In a statement, Grieg NL said the agreement "marries the Grieg Group’s extensive experience in the salmon industry with OCI’s leading expertise in seafood processing and marketing, and marks the continued long-term commitment and cooperation of the two family-owned companies to develop the Placentia Bay Aquaculture Project".
OCI says it is Canada's leading vertically integrated seafood company, and harvests and processes more than 150 million lbs (68,000 tonnes) of raw material which it markets to more than 30 international markets every year. It has a fleet of six fishing vessels varying from 43.3m to 67.7m in length, and owns six processing facilities.
Seven million smolt
Grieg NL ’s proposal includes a CA$75 million hatchery and nursery facility, to produce seven million smolt annually and stock 11 sea cage sites, ultimately producing 33,000 tonnes of salmon a year.
Newfoundland and Labrador province has committed to funding CA$45m of the project, which has an estimated total cost of CA$250m (£152m).
The project has been delayed following an appeal court decision last July that overruled a decision by the former Newfoundland and Labrador province minister of environment and climate change, Perry Trimper, to release the project from further environmental assessment.
That decision was due to be appealed by the government, but in the interim Grieg has been ordered to conduct a complete environmental assessment.
The Newfoundland provincial Department of Municipal Affairs and Environment’s assessment committee confirmed it was seeking feedback from the public on proposed guidelines for the company on what will be required in its environmental impact statement submission.
