'Egg' fish farm companies must lay off and furlough employees
Entrepreneur Cato Lyngøy has invested heavily in the Egg closed aquaculture facility with the technology companies Ovum and Herde Kompositt. Now both are facing significant downsizing.
Lyngøy told the newspaper Bergens Tidende (BT) that the lack of governmental framework conditions and investors' reluctance have made it difficult to secure sales of the Egg.
About 18-23 employees are being laid off, while 33-40 are furloughed at manufacturer Herde Kompositt, and eight employees are losing their jobs at operator Ovum.
The facilities required to operate aquaculture in closed systems are generally four to five times as costly as in open systems. But this is necessary to address the biological challenges, Lyngøy told the newspaper.
He emphasised that government incentives are necessary to enable development in the market for closed systems and to ensure future growth in the industry.
"I find it very difficult to go through this process. There are many who are now disappointed," the entrepreneur told BT.
