SalmoSea, whose majority owner is SalMar, has announced it is closing its processing plant in Rørvik, Norway. All of the plant’s employees are being laid off. In a statement, the company said that SalmoSea’s board had “unanimously” decided to close down the site.

“Over time, SalmoSea has not been able to cover its ongoing obligations,” the Norwegian-language statement starts. “In the board’s opinion, the company’s slaughtering business will not be competitive in the future either.” Although, the company also recognized the hard work of the owners to avoid this situation that has developed over years “among other things by issuing 82.7 million in the ongoing supply of new capital.”

The ground rent tax, colloquially known as the “salmon tax”, was also cited as a reason for the closure. To make it competitive, SalmoSea would need approximately NOK 250 million to be invested in upgrades, said the statement. However, the company explains that the “weakened” outlook for the land-based industry in Norway, means “there is no financial and economic basis for the large investments required to upgrade SalmoSea’s slaughterhouse”.

“We deeply regret that the company has felt compelled to take this step,” the statement continued. “The most important thing for SalmoSea and the company’s owners going forward will be to look after the interests of our 110 skilled employees, with particular emphasis on finding new jobs for our employees.”

New jobs for the employees

The statement said that the SalmoSea employees will be given “priority”. This preference for alternative employment will be “when increased volumes trigger a trend”. Moreover, they will be take in account when hiring new employees at SalMar slaughterhouses in Frøya and Senja.

Permanent employees, the company said, will be offered a minimum of three months’ notice of termination pay, arrangements for employees undergoing training or professional certificates to complete their studies, and NOK 2 million for “special measures”.