Nordlaks signs land deal for major new smolt facility

Arctic based salmon farmer Nordlaks has purchased a large site for its proposed new smolt facility. The company said the project will create 50 direct jobs and around 100 ancillary employment opportunities.

Nordlaks confirmed the move after signing a deal with Harstad Municipality for 70 acres of land at Rødskjær. It will be company’s fourth and largest smolt facility to date.

Executive director Erik Welde said: “If we manage to achieve what we want here at Rødskjær, it will have major ripple effects.

“There could be up to 50 jobs here and for every job we manage to create in Nordlaks, it leads to at least two more in other industries.

“In other words, it means up to 150 jobs, work for local suppliers and even more healthy salmon.”

He added: “We are now signing one of the largest and most important agreements of all time with a business operator. It is wonderful news that Nordlaks is approaching the realization of its ambitious plans for Rødskjær.”

Pictured are Nordlaks’ owner, Therese Berg (left), and the mayor of Harstad, Kari-Anne Opsal, signing the contract for land purchase at Rødskjær outside Harstad.

Harstad harbour and Harstad municipality are jointly developing commercial areas and a harbour on Rødskjær, located in the middle of northern Norway – and in the middle of the most populous region in the country.

“This shows the power of the local ownership we have in the aquaculture industry in the region,” said Kari-Anne Opsal Mayor of Harstad municipality.

Rødskjær is also seen as an attractive business area for sea-based industries for the entire Hålogaland region.

The aquaculture industry is expected to make up a significant proportion of the developments that will take place on Rødskjær in the coming years. The industrial area is expected to attract new companies and investments and strengthen the region’s economic foundation.

Nordlaks already has significant activity in the municipality, with three smolt facilities in the area. The latest one will house several million fish.

The project will be in the billions (krone) range and will make it possible for Nordlaks to allow the salmon/smolt to grow larger on land before it is released into the sea. Traditionally, the salmon/smolt has been 150-200 grams when released into the sea, while so-called large smolt is between 500 grams and one kilo.

Nordlaks’ site on Rødskjær in the background, with director of Nordlaks Smolt, Øivind Skjevling (left) and executive director Eirik Welde (right). Photo: Kolbjørn Hoseth Larssen/Nordlaks

Nordlaks operations director, Øivind Skjevling said: “By allowing the salmon to grow larger on land, we reduce the time the salmon live in the sea. This reduces the risk of disease and the salmon is less exposed to lice. It simply provides better fish welfare. To achieve this, we need more smolt facilities. That is why Rødskjær is important for Nordlaks, in addition to the fact that it will create many jobs locally.”

Another advantage of shorter time in the sea is that it will be possible to have greater production in existing facilities. In other words, Skjevling said, there is better utilisation of the locations that are already in use today.

Originally, the plan was to buy 100 acres of land, but the project was scaled down to 70 acres.

CEO Welde said: “We ended up paying NOK 701 million in tax last year, an increase of 164% from the previous year. When our investment capital is so significantly reduced, there are of course consequences, but we are still very happy to take a step forward in realising this project.”