The Board of Directors of Marine Harvest ASA has approved the development of a new feed factory in Scotland. The specific location is yet to be decided.
The investment is estimated at approximately GBP80 million (US$121 million) and will be phased over the years 2016-18, with approximately 95 percent of the capital expenditure falling within 2017-18. The investment size reflects that the product range will be broadened. The investment is expected to yield good results, with a capital return target in the range of 15 percent.
The factory is expected to have a total capacity of around 170,000 tonnes of feed, with the potential for further expansion. The investment is subject to acquiring land, obtaining relevant permissions and consents. The construction phase is planned to commence in 2017 and expected completion of the feed plant during the first half of 2018. All existing external feed supply contracts in Scotland, Ireland and the Faroe Island expire during the first half of 2018.
Existing management within Marine Harvest Fish Feed will provide support to the build-up of the new operational management.