News

Russian Aquaculture announced purchase of smolt production facility in Norway
23.10.2017

Moscow, 23 October 2017. Russian Aquaculture (“Russian Aquaculture” or “the Company"), Russia’s largest aquaculture company, announces the successful acquisition of a second smolt production facility in Norway, Olden Oppdrettsanlegg AS.

The facility utilises a flow-through system and can produce up to 2 million Atlantic salmon and trout smolt annually. Russian Aquaculture expects to receive the first shipment of smolt from the facility in 2018. The production facility has operated since 1995 and has been one of the main suppliers of Russian Aquaculture for years.

The Company views this acquisition as an important step towards building an efficient vertically integrated holding and achieving the Company’s strategic goal of producing up to 25-30 thousand tonnes of red fish by 2025.

Together with Villa Smolt, which Russian Aquaculture acquired earlier this year, the Company now has its own smolt to cover a material part of its supply needs, significantly reducing operating costs and biological risks. On top of that, this acquisition shows that the Company is implementing its strategy aimed at increasing operational efficiency and maintaining profitability in the long-term.

Russian Aquaculture plans to keep the highly professional personnel currently managing the facility and plans to develop the asset while strictly adhering to veterinary rules and continuing to act in a social responsible way. This acquisition will also enable the Company to gain significant experience in the smolt farming business, which may be further utilised in the construction of a smolt plant in Russia.

Ilya Sosnov, CEO of Russian Aquaculture, said:

“In a relatively short period of time we have made two important steps towards securing the stable supply with our own smolt. I am confident that this investment will strengthen our market position as well as decrease operating costs and biological risks. We are very happy to have acquired this first-class asset, and welcome the opportunity to work together with Norwegian colleagues who are among our longest-standing partners.”


Contacts:

EM

Denis Denisov                                               Irina Logutenkova

Tel.: +7-985-410-3544                                   Tel.: +7-910-438-4843

E-mail: denisov@em-comms.com                 E-mail: logutenkova@em-comms.com

   

ABOUT RUSSIAN AQUACULTURE

Russian Aquaculture is one of the leaders in the production of Atlantic salmon and trout in Russia.

The Company’s core business areas are:

  • Commercial farming of Atlantic Salmon in the Barents Sea in the Murmansk region

  • Commercial farming of trout in lakes of the Republic of Karelia

Russian Aquaculture’s core strategic focus is on growing its aquaculture business. The Company currently owns salmon and trout cultivation rights for 30 sites for the farming of salmon and trout. The total potential production volume for these sites is around 50 ths tonnes of red fish.

The Company’s long-term development strategy involves the creation of the largest vertically integrated player in the aquaculture market, including production of own fry, primary processing and distribution of the Company’s own products.

This press-release may contain projections or other forward-looking statements with regards to future events or the Group’s future financial performance. Forward-looking statements contain such words as “expected”, “as seen”, “projected”, “according to estimates”, “planned”, “will be”, “could”, “can”, “perhaps” and variations of such expressions (including the negative connotations thereof). Recipients are cautioned that any such statements are only projections and that actual results or developments may differ materially from those projected in any such estimates or other forward-looking statements. The Group shall not update this press release to revise projections or include information about events and other developments that occurred after the publishing of this document. There are various factors that may cause actual results to differ materially from those anticipated in such forward-looking statements of this press release; this applies, in particular, to the general economic situation, the risks associated with doing business in Russia, the sudden market changes in the business sectors of the Group, and many other risks specific to the Group and its activities