Skret­ting to close down UK feed plants

Fish Farmer - - News United Kingdom -

FEED com­pany Skret­ting is to close down its UK op­er­a­tions due to mar­ket over­ca­pac­ity, the com­pany an­nounced last month.

The Sta­vanger, Nor­way, head­quar­tered firm has started a process of con­sult­ing with em­ploy­ees with the view to cease pro­duc­tion in the UK at the end of April 2019.

The move is aimed at re­duc­ing the over­ca­pac­ity in the highly com­pet­i­tive salmon feed mar­ket, and bet­ter utilise the com­pany’s ex­ist­ing pro­duc­tion fa­cil­i­ties in Europe.

The com­pany has no plans to stop pro­duc­tion in other mar­kets.

The de­ci­sion comes just months be­fore Ma­rine Har­vest Scot­land’s new feed plant on Skye is due to open.

Therese Log Bergjord, CEO of Skret­ting, said: ‘Un­for­tu­nately, we are ex­pe­ri­enc­ing un­sus­tain­able mar­ket con­di­tions in the UK.

‘With a new large feed plant be­com­ing op­er­a­tional in Scot­land early 2019, the to­tal feed ca­pac­ity in the re­gion is ex­pected to ex­ceed the to­tal mar­ket by more than 50 per cent.

‘This is driv­ing down prices, lead­ing to an un­sus­tain­able com­mer­cial en­vi­ron­ment.

‘We have there­fore made the de­ci­sion to start con­sult­ing with our em­ploy­ees on a pro­posal to cease feed pro­duc­tion in the UK.’

Skret­ting, which has UK fa­cil­i­ties in In­ver­gor­don in Scot­land and Lon­gridge near Pre­ston, will con­tinue to sup­ply to the UK mar­ket where eco­nom­i­cally vi­able.

‘This is a tough de­ci­sion for Skret­ting’s man­age­ment team and our owner, Nutreco, con­sid­er­ing the im­pli­ca­tions for our lo­cal em­ploy­ees and part­ners,’ said Log Bergjord.

‘In the pro­posed plan, all lo­ca­tions, in­clud­ing two pro­duc­tion sites, will close down, and around 100 em­ploy­ees may be­come re­dun­dant.

‘First and fore­most, we now con­cen­trate on find­ing good so­lu­tions with our em­ploy­ees, cus­tomers, sup­pli­ers and part­ners in the UK.’

While Skret­ting ex­pe­ri­ences re­gional mar­ket chal­lenges in the UK, the group will pur­sue fur­ther ex­pan­sion of the global aqua­cul­ture in­dus­try from its op­er­a­tions in 19 coun­tries across all con­ti­nents.

Above: Skret­ting CEO Therese Log Bergjord

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