The Board of directors of BioMar has decided to invest approximately $12 million in additional production capacity in Chile.
”When we acquired a majority shareholding in BioMar last year we were very conscious about the growth prospects of the aquaculture industry”, Chairman of the Board of Directors of BioMar and CEO of the majority owner Schouw & Co. Jens Bjerg Sørensen said. ”It is our intention to maintain BioMar as one of the leading global companies within the aquaculture industry consequently we are investing in continued growth”.
“The aquaculture industry in Chile is one of the fastest growing in the world. In a matter of only 10 years Chile has been able to double is global market share of farmed salmonids to approximately 40%. This means that Chilean farming now is at the same size as Norwegian farming. Consequently the Chilean market is of strategic importance to BioMar,” Jens Bjerg
Sørensen said.
BioMar expects that in the years to come the Chilean market will show strong growth. This level of growth will result in at total market capacity utilization in excess of 80% during 2006.
”This investment emphasizes the commitment of BioMar to the continuous development of the Chilean aquaculture industry. We intend to grow with our existing and potential customers supporting them with the best products and technical services available in the market place,” Managing Director of BioMar Chile Carlos Diaz commented.
BioMar Chile expects to be close to full capacity utilization at the end of 2006, which means that additional capacity is necessary if BioMar is to maintain its market share. BioMar Chile currently has a production capacity of some 100,000 tons. The new investment will increase the capacity by approximately 90,000 tons. The investment will take place at BioMar’s existing factory in Pargua with the construction of a second line, which is expected to be ready for production in the middle of 2007.
BioMar will take advantage of state-of-the-art technology making it possible to set new market standards for quality and efficiency production of fish feed. Furthermore BioMar will obtain a strategic flexibility in manufacturing making it possible for BioMar to use a broader spectrum and the most optimal combination of raw materials.
The BioMar group is the third largest supplier of fish feed to the aquaculture industry. The main business areas are feed for salmon, trout and Coho in Chile, Norway and the UK, and for freshwater trout, sea-bass and sea-bream in the rest of Europe.
The BioMar group supplies feed to around 50 countries and for over 25 different fish species, including cod, eel, turbot, halibut and sturgeon. The BioMar group has modern production facilities in Chile, Norway, Scotland, Greece, France and Denmark. The group has a turnover of close to $500 million and has approximately 500 employees.
