Laxey secures €130 million for next phase of land-based salmon farm
With the first fish already in the facility and the first harvest scheduled for autumn, the company continues to deliver on schedule.
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Icelandic aquaculture company Laxey, which is developing a land-based salmon farm with a capacity of up to 36,000 tonnes per year (head on gutted), has secured a combined financing of €130 million (£110.8m). The funds will go towards the development of the second phase of the facility, the company says in a statement on its website.
The financing comprises a successful €35m share issue, combined with a new long-term loan agreement with Arion Bank. The bank will both refinance and extend existing loan facilities for the first construction phase, as well as contribute new debt financing for the second construction phase.
In total, Laxey has now raised more than €115m in equity since its inception. The latest issue was supported by existing owners, as well as several new, experienced investors from both Iceland and abroad – including professionals from across the salmon farming value chain.
Local money
The Sigurjón Óskarsson family from the island of Vestmannaeyjar, where the facility is being built, remains the cornerstone investor in the company. Approximately 20% of the shares are now owned by strategic investors with deep industry knowledge.
"We are experiencing strong interest and trust from our owners, which confirms that our vision of sustainable and financially sound land-based farming is highly relevant," says chairman Lárus Ásgeirsson.
The facility is progressing according to the original schedule. The state-of-the-art hatchery was completed in August 2024 and is already fully operational, with five batches of eggs obtained. The capacity is up to 4.6 million smolts annually.
The first part of the fish farming facility is nearing completion, and the first two smolt batches have already been moved in. The first 5,000 cubic metre fish farming tank was commissioned in April, with the next tank ready for operation shortly. In total, each section will consist of eight such tanks.
Laxey is also preparing to build a harvesting and processing facility. The first harvest is expected in autumn 2025 – as planned.
Post-smolts for marine pens
In addition to food fish production, Laxey will also use its capacity to produce and sell post-smolts to other farmers. This provides early income and higher capacity utilisation, while contributing to better biological results for other stakeholders.
By providing robust post-smolts, the time spent in sea-based farming is reduced, which provides less biological risk and better predictability.
Expanded infrastructure
The project was originally planned for 27,000 tonnes (HOG) of annual production, but has now been scaled up to 36,000 tonnes. The increase is due to better technical utilisation, larger volumes of post-smolts, and expanded infrastructure.
Laxey expects the project to have long-term ripple effects on Vestmannaeyjar, both in the form of jobs and value creation in a local community with a strong seafood tradition.
The financial advisor for the transaction was Mar Advisors, while Arion Bank led the issue.
Norway-headquartered aquaculture supplier AKVA group said that a €20m contract it had provisionally announced in January that was related to Laxey's grow-out facility had been confirmed.
"The realisation of the contract and AKVA’s delivery was subject to Laxey obtaining the necessary financing. This condition was met today," said AKVA.
