SalMar planning huge increase in output

SalMar is planning to increase its annual output by at least a third, investors will be told today.

The world’s second largest producer of Atlantic Salmon, and part owner of Scottish Sea Farms, is due to outline its ambitions at a Capital Markets Day event in Tromsø.

CEO Frode Arntsen will say that sustainable organic growth is now top of the group’s agenda.

He will explain that after several successful transactions and the work to integrate NTS, Norway Royal Salmon and SalmoNor, SalMar had established itself as a leading industrial powerhouse in the international aquaculture industry.

Updates to be announced at the event include:

• SalMar is presenting an overall organic growth potential from all regions which implies a future harvest volume of 362,000 tonnes, an increase from the expected harvest volume of 273,000 in 2023 or a 33% increase, without this requiring major capacity-increasing investments.
• The company has increased its estimate of the annual cost savings after the integration of NTS, NRS and SalmoNor, from NOK 671m to NOK 844m, of which 71% has been realized by the end of August 2023.

CEO Arntsen will add: “The company continues to invest with clear ambitions in both coastal farming and offshore aquaculture. SalMar aims to maintain its leading role by growing and developing the industry nationally and internationally.

“Our ambition is further growth in all our regions, but where, how quickly and how much we want to invest depends on where we find sustainable framework conditions.

“ In Norway, the ground rent tax that has been introduced is a particular concern for the further growth potential beyond the organic growth potential we have gained through the NTS transaction last autumn.”

Frode Arntsen, CEO SalMar