Access to PNS' processing plant will be a key factor in the expected expansion of Nordic Halibut production volumes in the coming years.
Photo: Nordic Halibut.
The Norwegian aquaculture company Nordic Halibut (NOHAL) announced today it has reached an agreement with Pure Norwegian Seafood (PNS) granting it the right to use PNS' processing facilities in Averøy, a municipality in Møre og Romsdal county, in Nordmøre region, Norway.
Likewise, Nordic Halibut also said it has reached an agreement with Måsøval, Pure Norwegian Seafood's main shareholder, whereby NOHAL obtains the option to purchase 100% of the shares in PNS. The transaction - the price of which has not been disclosed - is subject to Måsøval entering into the necessary agreements with Pure Norwegian Seafood's minority shareholders.
The Norwegian halibut farmer – which, despite posting a net loss for the quarter, reported strong growth in Q4 2024, with increased production and rising revenues - said access to Pure Norwegian Seafood's processing plant will be a key factor in the planned expansion of its production volumes in the coming years. The goal is to reach an annual production of 10,350 HOG tons by 2031.
"We are pleased to partner with PNS and look forward to integrating their skilled personnel into our operations. This collaboration not only strengthens our production capabilities but also underscores our dedication to securing and creating jobs locally," said Nordic Halibut CEO, Edvard Henden.
"With this partnership, we are taking the final step toward achieving full control over our entire value chain — from genetics to harvesting, processing, and value-added production," he continued, adding that control of the entire value chain will allow them to maintain the highest levels of quality and optimize efficiency.
"By investing in local expertise and integrating every stage of production, we are securing long-term stability, strengthening our market position, and promoting economic development in the region," CEO Edvard Henden concluded.
Located, as said, in Averøy, Møre og Romsdal, Pure Norwegian Seafood is a processing plant with a highly flexible production line that is adaptable to the processing of multiple species. In addition, the facility also has capacities for sanitary slaughtering as well as significant freezing capabilities.
Renowned for its high-quality services, a year ago, however, the plant became embroiled in controversy when it became public that an independent investigation, conducted by EY and reported by Måsøval, had concluded that PNS had sold frozen salmon not suitable for human consumption, according to Norwegian regulations.
After acquiring 65% of the shares in June 2021, Måsøval was processing and exporting high-quality Atlantic salmon to a global market through its majority shareholding in PNS. Thus, as a supplier the salmon farmer carried out regulatory controls and audits always with positive results until October 2023, when it suspected irregularities that were immediately brought to the attention of the Norwegian Food Safety Authority (Mattilsynet).
At the time, Måsøval explained that these irregularly sold fish included discarded/ensiled fish, or production-graded fish that had to be elaborated in secondary processing before export, and through its representatives in PNS' Board, it took action to completely halt the irregular activity.
The incident affected Måsøval's Sales & Marketing segment, which posted disappointing results in Q2 2024 - an operational EBIT loss of NOK 8.1 million (EUR 0.71 million / USD 0.77 million) -, negatively impacted by a sharp decline in market prices during a period of high harvesting, as well as additional costs related to legal expenses and the recall of fish following the investigation.
Despite these challenges, Måsøval then said it was taking steps to improve the segment by establishing a fully integrated in-house sales department, including the possible acquisition of Pure Norwegian Seafood's sales operations, something it finally did in Q4 2024, while commissioning its new TL52 harvesting facility in Hitra, and before, as we now see, attempting to sell the PNS processing segment.
