SalMar’s SalmoSea closes Rørvik processing facility, cutting 110 jobs

Norway's proposed ground rent tax was among the reasons behind the closure, according to a company statement today.
Salmon processing. Photo: Adobe Stock.
Salmon processing. Photo: Adobe Stock.

SalmoSea, whose majority owner is SalMar, has announced it is closing its processing plant in Rørvik, Norway. All of the plant's employees are being laid off. In a statement, the company said that SalmoSea's board had "unanimously" decided to close down the site.

"Over time, SalmoSea has not been able to cover its ongoing obligations," the Norwegian-language statement said. "In the board's opinion, the company's slaughtering business will not be competitive in the future either." This was despite attempts to turn the situation around, the statement noted, "among other things by issuing 82.7 million in the ongoing supply of new capital."

Norway's ground rent tax, colloquially known as the "salmon tax", was also cited as a reason for the closure. To make it competitive, SalmoSea would need approximately NOK 250 million to be invested in upgrades, the company said. However, the "weakened" outlook for land-based industry in Norway means "there is no financial and economic basis for the large investments required to upgrade SalmoSea's slaughterhouse".

"We deeply regret that the company has felt compelled to take this step," the statement continued. "The most important thing for SalmoSea and the company's owners going forward will be to look after the interests of our 110 skilled employees, with particular emphasis on finding new jobs for our employees."

SalmoSea employees

The statement said that SalmoSea employees will be given "priority" when hiring at SalMar slaughterhouses in Frøya and Senja, and "when increased volumes trigger a trend".

For the permanent employees, the company said, will be offered a minimum of three months' notice of termination pay. Arrangements will also be made for workers undergoing training or professional certificates to complete their studies, and NOK 2 million will be made available for "special measures".

About SalmoSea

SalmoSea was Norway's most modern slaughterhouse for salmon. The slaughterhouse, also known as NT166, has long traditions in the processing of seafood and offers slaughtering services to their owners, SalmoNor and Bjørøya fish farming as well as external bussines.

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