FiiZK selling lice skirts division to focus on floating closed containment

Norwegian aquaculture supplier FiiZK group has agreed to sell its lice skirt production business FiiZK Protection AS' to Icelandic fisheries industry supplier Hampidjan Group, it announced today.

The sale is part of a streamlining of FiiZK, which will focus on unconventional farming methods including closed and semi-closed cages for fish farming. The first step of this strategy was announced on June 26 when FiiZK announced the sale of FiiZK Digital AS to seafood investor Bluefront.

“The aquaculture industry is increasingly recognising the biological and commercial benefits that closed and semi-closed cages bring,” said FiiZK managing director Jan Erik Kvingedal.

“To date, FiiZK’s cage products have successfully completed more than 70 production cycles, demonstrating strong fish growth and no problems with lice and escapes. We aim to build on this success.”

Under the sale agreement, FiiZK Group divests FiiZK Protection AS’ lice skirt business, which is located at Valsneset in Ørland municipality, northwest of Trondheim, Norway, to Hampidjan Group. The lice skirt business delivered revenue of approximately NOK 100 million in 2023.

FiiZK Protection AS says it has about 80% of the lice skirt market in Norway. Following the sale, the number of employees in the company will be around 30, located primarily at Valsneset.

The parties have agreed to not disclose the financial details of the transaction, which is expected to be completed in September 2024. FiiZK Protection AS will be renamed following the completion of the transaction.

Textiles factory stays

FiiZK Protection AS’ facility at Mjåtveit, outside Bergen, is not part of the transaction. This business, which manufactures technical textiles including canvas for closed and semi-closed fish cages and employs around 20 people, will be transferred to the FiiZK group company FiiZK Industries AS prior to execution of the share purchase.

“Our facility at Mjåtveit plays a key role in manufacturing materials for our semi-closed and closed fish cages. Keeping this business therefore supports FiiZK’s strategic direction,” said Ole Falk Hansen, chairman of FiiZK and chief executive of industrial technology group Nekkar ASA, which owns 39% of FiiZK.

Going forward, FiiZK will focus on the sale of closed and semi-closed fish cages, with associated software, maintenance and services. A key part of this effort is FiiZK’s new closed cage called Protectus, which is based on the best solutions from the company’s three previous models, Certus, Ecomerden, and Starfish. In addition, the company has recently launched FiiZK FlekZii Cage, which is a semi-closed cage solution that reduces lice infestation.