Biotech firm predicts increased profitability after opening ‘the most modern’ Salmon facility in the world

AIM-listed biotech firm Benchmark Holdings has started the production of salmon eggs at its new land based breeding facility in Salten, Norway, after investing £40m over two years.

The Sheffield-based aquaculture health, nutrition and genetics business said its Salten facility had been built to the highest standards of technology and biosecurity, and that it would be the most modern salmon egg production site in the world. The increased capacity will allow Benchmark to supply the global market with biosecure eggs year-round.

Benchmark is a world leader in salmon genetics and the world leading supplier of salmon eggs and said the project was the culmination of a two year, £40m investment, delivered on time. The new facility will increase Benchmark’s in-house capacity by 75%, allowing the Company to capitalise on its leading market position and the strong growth fundamentals of the industry.

Benchmark currently outsources part of its production to meet growing demand for its products. The new facility will enable Benchmark to bring production in-house, enhancing profitability.

Sales of fertilised eggs will commence in November 2018 and additional fish will be brought into the facility to ramp up volumes throughout 2019. As anticipated, initial sales will benefit the 2019 financial year, with full production capacity expected by 2021.

Salten is located in Northern Norway where the salmon production base is growing fast. The new facility will allow Benchmark to serve this growing region as well as the rest of Norway and international markets.

Malcolm Pye, CEO of Benchmark, said: “The opening of our new facility in Salten on time is a very important milestone for Benchmark which will allow us to capitalise on our leading market position in salmon genetics and the favourable long term market trends in the industry. We expect it to contribute additional revenues at higher margins going forward.”