Everything ready for new fish farm - except the money
Iceland's GeoSalmo has put construction of its planned 33,000-tonne land-based salmon facility on hold, and four employees have been laid off.
Published
Icelandic company GeoSalmo, which plans to build a land-based salmon farm with a production capacity of at least 33,000 tonnes, has put the project on hold and laid off four employees.
LandbasedAQ has recently visited the area where the facility is to be built and can confirm that there is currently no visible construction activity – only a sign with "GeoSalmo" standing on site near the south coast town of Thorlakshofn.
Investors holding back
Chief executive Jens Thordarson confirms in a statement to LandbasedAQ that the facility has been put on hold for the time being.
“We have been working on preparations for the project over the past three years, including permits, engineering work and securing the key resources needed to build and operate such a facility. This has largely gone as planned, and all necessary conditions are in place.”
He points out that the facility has been fully designed and is ready for construction, and the company is also completing the smolt facility, which will be ready for operation after the summer.
There are very limited benefits to being early, so we are not worried about taking the time needed
Jens Thordarson
According to Thordarson, it is the financial markets that are now holding back progress.
“Financial markets have been challenging, particularly with recent developments in global trade, tariff negotiations, and a global restructuring that creates constant uncertainty. It is difficult to get investors to commit to an investment of this size.”
At the same time, the GeoSalmo CEO says that the support is still there.
“We continue to have good support from investors and banks, and will look for the right time and structural solution to move forward with implementation. In the meantime, we are using the time well to adjust and upgrade our plans based on the latest experience in the industry.”
Thordarson says the company generally believes that a measured and calculated approach will lead to greater success in the long run.
“There are very limited benefits to being early, so we are not worried about taking the time needed.”
Four employees laid off
With all preparations completed, and without any concrete timeline for the start of construction, the company has chosen to reduce its staff.
“Since all the preparations have been made, and we do not have a final timeline for when we will start construction, it made sense to reduce the number of employees.”
Thordason says that the employees have done a brilliant job of ensuring that they are well prepared to carry out the construction of the fish farm.
“We therefore had to lay off four employees who have made a fantastic effort to get us where we are today, and who would have formed a key part of our implementation team,” he says.
Starting after the summer
At the same time, there is movement in another sub-project.
“We are in the process of completing our smolt facility, which will be ready for operation after the summer.”
Despite the postponement, Thordarson emphasises that GeoSalmo is ready for implementation when conditions are right.
“We are now in a situation where we are fully ready for implementation after several years of thorough preparations. Now we will focus on finding the right strategic partners to work with, and we will take the time needed to develop such a collaboration,” he concludes.
