CERMAQ : enters feed production in Vietnam

Cermaq has today signed a joint venture agreement with the local partner, Anova Corporation, in Vietnam. Through its feed operations, EWOS, Cermaq is entering operations in the Vietnamese feed market.

Through acquisition of shares and a share issue, Cermaq has obtained 51 percent of the shares in the joint venture company. Cermaq will control the Board of Directors and the management team. Mr. Rune Vamråk, supply chain director of the Norwegian company EWOS AS, is appointed as general manager for the company.

By this agreement EWOS enters the feed market for farmed Pangasius. The broad competence the company has within salmonids can be successfully transferred to Pangasius, a white fish that has enjoyed a tremendous market growth in Europe and the US over the last decade. Pangasius eats feed which is made mainly from plants, and can supply significant volumes of sustainable marine protein to the global food market.

The venture partner Anova Corporation is established in Vietnam with a plant in the Long Anh province. The plant which will be transferred to the joint venture company as a part of the transaction has an annual capacity of 85,000 tonnes. EWOS Vietnam has considerable ambitions for the Vietnamese market and the goal is to utilize the full capacity of the plant within the first operating year. The company has engaged the highly esteemed Pangasius expert Mr. Serene, for the initial phase of market building.

The farming of Pangasius in Vietnam is around 1.8 million tonnes. The major part of this volume is exported as fillets, reaching around 600,000 – 700,000 tonnes annually. Farming of Pangasius is predicted the highest growth globally of farmed species the next decades.

- Vietnam is the fish feed market for the future. We are well prepared, and look forward to employ our competence also outside the scope of salmonids, says Kjell Bjordal, COO for Cermaq’s feed operations, EWOS.

Through its establishment in the Vietnamese market EWOS can contribute with its competence related to food safety and sustainability. Furthermore EWOS will utilize its research based knowledge within fish nutrition, raw materials and food production to produce a more cost efficient feed than what is currently available in the Vietnamese market.

- We believe that the farming of Pangasisus can be strengthened through optimizing the feed, focusing on feed technology, nutrient requirements, and fish health, Mr. Bjordal emphasizes.

The agreement that gives Cermaq a limited access to an extensive market represents a first investment close to USD 6 millions.

Further information – please contact:

Kjell Bjordal, Chief Operating Officer, fish feed, phone: + 47 55 69 70 94, mobile: +47 906 79 837

Einar Wathne, Deputy COO, fish feed, phone: + 47 55 69 70 02, mobile: +47 958 67 817

About Cermaq

Cermaq is an international group of companies with activities in fish farming, production of salmonid feed and research in aquaculture. Cermaq has operations in Norway, Chile, Canada and Scotland, the main geographic regions for salmon and trout farming. Through its EWOS subsidiary, Cermaq ranks as the world’s second largest producer of feed for salmonids. The Mainstream subsidiary is one of the world’s leading farming companies of salmon and trout. The group had sales of around 9 billion in 2009, and employed 2 796 end of September 2010.

Cermaq is listed on the Oslo stock exchange with ticker code CEQ

www.cermaq.com:

http://www.cermaq.com/

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Tags: Vietnam feed market