Thai Union takes multi-million hit over smoked salmon factory

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Thai Union put The Edinburgh Salmon Company for sale in September resulting in EUR 11.1 million loss.

According to the latest results in a Q3 report by the seafood giants, Thai Union, it had to write off nearly EUR 11.1 million of value because of a loss-making plant.

At the end of September, The Edinburgh Salmon Company Ltd (ESCo) announced the proposed sale or closure of the business in Dingwall.

Hundreds jobs are still at risk at the site. Européenne de la Mer, a subsidiary of Thai Union Group, said the business has been suffering heavy losses as a result of a “highly challenging market”.

The company said:

“Européenne de la Mer (Thai Union subsidiary) announced intention to divest loss-making chilled salmon business in Scotland. The Edinburgh Salmon Company Ltd (ESCo) will actively pursue and explore all viable divestment opportunities in next 12 months in attempt to avoid, reduce, and/or mitigate potential impacts upon valued employees.”

As a result, ESCo is reported in financial statements as discontinuing operation and does not contribute to financial performance on operating level. ESCo contributed annual sale of approximately EUR 39.9 million.

According to the BBC, accounts published at Thai Union headquarters, near Bangkok, show the Scottish assets had a value equivalent to EUR 11.1 million at the end of September.

However, the publication reported a loss sustained by the Edinburgh Salmon Company in the first nine months of this year came to £13m. Up from a loss in the first nine months of 2017 amounting to £3.3m.