Cermaq to build new salmon processing plant in the US, expand capacity and automation at Chilean facility

Cermaq will build a new salmon processing plant in the US. The investment was disclosed at Mitsubishi Corporation's half-year results briefing last Wednesday; Cermaq is the salmon farming company under Mitsubishi. According to SalmonBusiness, the project aims to reduce Cermaq's reliance on volatile salmon spot prices.

The investment is part of Cermaq's expansion of value-added processing, and the same plan also includes adding capacity and raising automation levels at Cermaq's existing facility in Chile. Mitsubishi said the investments are intended to improve profit margins and strengthen the company's ability to withstand fluctuations in the market environment.

The expansion plan was announced as Cermaq's earnings are improving. The acquisition of Grieg Seafood's farming operations in Norway and Canada has supported results. In the six months to September, Cermaq posted a net profit of 9.9 billion yen (590 million Norwegian kroner); in the same period last year it recorded a loss of 1 billion yen, or 56.7 million Norwegian kroner.

In the same period, Cermaq sold a total of 144,200 tonnes of salmon and trout, including 87,800 tonnes from Norway, 36,300 tonnes from Chile and 20,100 tonnes from Canada.

Although results have recovered from last year, Mitsubishi still cautioned that due to weak market conditions and rising feed costs, including the impact of the El Niño phenomenon, full-year salmon revenue will be below its previous expectations.