Facing challenging market conditions in the North Atlantic region due to a significant reduction in Barents Sea cod fisheries, combined with restrictions on the sale of fishing gear to Russian vessels that previously sourced services in Norway, Hampiðjan is streamlining and consolidating activities across a number of entities within the group.
Aquaculture has already been separated, with business in this sector already consolidated across the group into the new ELDI entiry, headquartered in Norway, including the extensive aquaculture activities of Vonin Refa.
As both Vonin Refa and Mørenot Fishery in Norway have been coping with a downturn, these are now being merged into a single company and will operate as Mørenot Refa to provide fishing gear production and services to fishing companies across the Norwegian market. Consolidation opens further opportunities for operational efficiencies, including the rationalisation of facilities, discontinuation of unprofitable activities, and efficiencies across the workforce.
Alongside this, trawl door manufacturing is to be rationalised, bringing together production of both Mørenot and Vónin trawl doors.
Mørenot’s Injector doors have been produced by its subsidiary Baltic Sea Steel in Plungė in Lithuania, while Vónin’s high-tech trawl doors have been produced by a subcontractor in Lithuania. Ownership of Baltic Sea Steel is being transferred fully to Vónin, and all trawl door production will be consolidated in Plungė and this will improve production margins.
The expected increase in EBITDA contribution is expected to be around €1.2 million, with partial effects in the second half of this year and close to full effect next year.
