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Lerøy Seafood Group ASA: Purchase of licence capacity cancelled. Investments no longer justifiable.

Lerøy Seafood Group ASA
Lerøy Seafood Group ASA

In 2022 Lerøy Seafood Group ASA (“Lerøy”) purchased 614 tonnes maximum allowable biomass (MAB) under the so-called traffic light system at a total value of NOK 123 million. Lerøy has decided to cancel this purchase.

Increasing the tax rate from 22% to 62% creates unreasonable framework conditions for the industry in Norway, changing the scope and incentives for investments in areas other than maintenance capex. All major new investments in the Group’s value chain in Norway must regrettably be put on hold pending the decision of the Storting, the Norwegian parliament. The Board of Directors has today decided to halt the NOK 420 million investment already under way to increase processing capacity at Skjervøy in Troms.

“Norway’s aquaculture industry is something as unique as a globally competitive form of food production that is sustainable both from an environmental/climate perspective and financially. Norway needs to step up, not least in these difficult times, and continue to facilitate production of food for the world’s population. In recent decades, this decentralised district-based industry has built a unique value chain based on expertise and willingness to take risks. This value chain has significant potential for further development, but then the government needs to work together with the industry and provide predictable framework conditions. Introducing a resource rent tax will halt development of the industry’s value chain and hence reduce all its direct and indirect ripple effects along the coast,” says CEO Henning Beltestad.