Cermaq pulls the plug on Chilean sites

Two salmon processing plants owned and operated by industry giant Cermaq in Chile are about to close, reports IntraFish, as part of efforts to restructure operations to negate the effects of reduced production.

The two plants are located on Chiloe island, one in Ancud, the other in Dalcahue. The company previously had four sites in the area known as Region X, giving it a capacity to process 120,000 metric tons per year. It had only been using 60% of this capacity during the previous 12 months, as production volume had fallen dramatically following regulatory changes in the country.

Announcing the move, Cermaq said:

\’These types of decisions are difficult for everyone impacted, but we are convinced that they are necessary to build a structure that allows the company to operate in a more efficient and sustainable way in the coming years\’.

The news follows hot on the heels of another development earlier this week, in which the company revealed that it\’s $500 million project in Nova Scotia was in serious doubt following delays in the public review process due to Coronavirus.