FiiZK sells lice skirt business

Norway-based fish farm cage manufacturer FiiZK is selling its lice skirt production business to Iceland’s Hampidjan Group.

Under the agreement, Hampidjan will take over FiiZK Protection AS, the lice skirt business, which is located at Valsneset in Ørland municipality, northwest of Trondheim, Norway. The lice skirt business delivered revenue of approximately NOK 100 million (£7.2m) in 2023.

FiiZK Protection AS is a leader in the production and sale of salmon lice skirts for the aquaculture sector and has about 80 percent market share 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.

FiiZK said the sale is part of a streamlining of its business. In future the intention is to focus on “unconventional” farming methods including closed and semi-closed cages for fish farming. The first step of this strategy was announced on 26 June 2024, when FiiZK announced the sale of FiiZK Digital AS to seafood investor Bluefront.

The new approach includes FiiZK’s new closed cage, “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 aims to reduce lice infestation.

FiiZK Group’s largest shareholders are Nekkar ASA (39%) and BEWI Invest (41%).

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

Jan Erik Kvingedal, Managing Director of FiiZK.

The FiiZK Mjåtveit facility

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

Approximately 20 people are employed at the Mjåtveit facility.

“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 CEO of Nekkar ASA.