Faroese salmon farmer Bakkafrost has revealed details of a £711 million investment it says will transform its operations in Scotland.
The firm’s Scottish subsidiary, the Scottish Salmon Company (SSC), employs more than 600 people across 60 sites off the west coast and Outer Hebrides.
Bakkafrost said its plans would deliver 40% “sustainable growth” in output over the next five years.
SSC had underperformed in the past, the group said, adding the Scottish operations were poised to benefit from a strengthening of all parts of the supply chain.
Bakkafrost also announced detailed measures and investments to improve the biological performance and cost structure of its Scottish business, which has its head office in Edinburgh.
Growth is expected to be generated through a combination of employing idle licence capacity and higher utilisation of existing licences by using large smolt.
A “more robust” framework for seawater risk mitigation and shorter seawater cycle is expected to become a “game-changer” for biological performance.
SSC managing director Ian Laister said: “This investment plan will be transformational for the business as we aim to become the leading and most sustainable salmon producer in Scotland.
“Our strategy delivers true value to our stakeholders and continues and enhances our support for the rural communities in which we operate.”
Bakkafrost said it was collaborating with Scottish authorities in progressing its investment plan, which is expected to be financed through a combination of operational cash flow and available funding.
The conventional salmon farming industry is operating close to capacity. As a result, the industry is committing significant resources to the development of alternative farming methods on and offshore.
Bakkafrost added it was well-prepared to bolt on such projects once its conventional capacity is depleted and proven technology becomes available.
Salmon giant Mowi targets ‘unnecessary travel’ as it aims to halve number of flights taken by staff
