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Bakkafrost considers closing Scottish salmon processing facilities

Bakkafrost considers closing Scottish salmon processing facilities Fish & Seafood Food and Beverage Business

Bakkafrost, a Faroe Islands-based salmon processing company, is considering shutting down two sites in Stornoway on the Isle of Lewis in Scotland’s Outer Hebrides. The closure of facilities at Marybank and Arnish could potentially impact around 80 jobs. This proposed move is attributed to the majority of fish being harvested in the first part of the year.

According to a spokesperson for Bakkafrost Scotland, “We are considering a temporary, but extended, closure of our facilities at Marybank and Arnish in Stornoway, affecting around 80 jobs. As our communicated plans, the business has harvested the majority of our production in the first part of the year and there will be minimal harvesting activity over the next 18 months in the north. This is due to stocking timing and locations. Our board has been forced to consider extremely difficult scenarios in order to future-proof the business and secure our remaining staff across Scotland. One of the scenarios proposed is that we close the Arnish Harvest Station and the Marybank Processing Facility, for an extended period.”

Alasdair Allan, a Western Isles SNP politician, expressed concern over the potential job losses, stating that losing so many jobs would be “devastating” as Bakkafrost is one of the largest employers in the area. In the financial results for Q1 2024, Bakkafrost reported revenues of DKK1.59bn ($232.9m) from its Faroes Islands operation, while revenues from its Scotland operation declined from DKK708m to DKK612m compared to the previous year.

CEO Regin Jacobsen expressed satisfaction with the company’s strong results in the first quarter of 2024, particularly in the Faroe Islands. Bakkafrost is known as the largest fish farming company in the Faroe Islands, the second largest in Scotland, and the third largest in the world.

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