Proximar Seafood aming for start-up in Q3

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CAPEX investments estimated to EUR 19/kg salmon.

Land-based salmon farmer Proximar Seafood has signed a contract with Techno Ryowa, a Japan based engineering company for the equipment and installation related to heating, ventilation, and air conditioning (HVAC). The contract is the final CAPEX intense fixed price contract for the company’s land-based salmon farming facility in Japan.

The contract value is in line with the budgeted costs.

“We have now executed and signed all important contracts for the construction and installation of our state-of-the-art land-based facility in Japan, and are on track to deliver on time and cost. We are pleased to see our many years of preparations and patience is paying off well”, said CEO Joachim Nielsen in Proximar Seafood.

The construction progress of Proximar’s first facility is moving ahead as planned on its first RAS (recirculation aquaculture system) facility under construction in Oyama town at the foot of Mount Fuji. Production is planned to start up in the third quarter this year, when the first eggs will be brought into the hatchery.

“The high degree of fixed costs and low impact of the pandemic puts us in a unique position to follow our business plan and finish the project on time and within budget. With a high degree of fixed costs, our estimate of CAPEX around NOK 193/kg (EUR 19.3) (including land) is maintained, and we are therefore well-positioned in terms of our business plan.”

Despite travel restrictions due to the pandemic, the construction progress has been unaffected. Japan is currently opening its strict travel restrictions, enabling Proximar to finally strengthen its presence of on-site management. Currently, Proximar is also successfully staffing up the operational capacities, with experienced people from RAS-farming of Atlantic salmon.

The increase of material costs during the last year has not had any substantial impact on Proximar’s construction costs following the high level of fixed price contracts. The exposure to fluctuating prices for materials and equipment has proven to be limited.

The signing of the contract with Techno Ryowa brings the level of fixed price contracts to above 95 per cent of the estimated CAPEX.

Photo: Proximar Seafood