Pan Fish Denmark, which had about 200 employees at year end 2004, has decided to send home all employees in the production at the company's processing plant in Hirtshals in Denmark over the coming few weeks. The decision is a direct consequence of EU's decision to impose anti dumping duty on Norwegian farmed salmon. This has made it impossible to continue the operation in its current form. Hence, the anti dumping duty, which is a consequence of an anti dumping complaint submitted by a few companies in Scotland employing 265 persons, is already giving dramatic consequences also within the EU itself.
Pan Fish took over 100 percent of Pan Fish Denmark (former Vestlax Hirtshals) during autumn 2004. The take over was a part of the restructuring and revitalisation of Pan Fish. The plant which is very modern had and still has a significant potential to take part in a continuously growing market for consumables. The company was well underway with an extensive operational, product and marketing restructuring when EU decided to impose trade restrictions.
- Almost 4 Danish kroner per kilo salmon in toll directly into the EU is more than we are able to carry during this reorganisation, says newly hired managing director Thorstein Abrahamsen in Pan Fish Denmark and continues: - We are in the middle of restructuring our operations, and have implemented a number of measures linked to cost savings and optimalisation of our operations, hereunder divestment of properties. These processes have already given positive results, however the implementation of anti dumping duty from EU towards Norwegian salmon, which is the primary raw material for our production, has effectively brought the positive operational and financial development to a stop.
- This is a very sad and unfortunate situation. The implementation of anti dumping duty has hit our Danish operations, which is inside the EU, with full strength. Pan Fish Denmark has struggled with weak margins due to high raw material prices, and with antidumping duties on top and thereby increased competitiveness for Chilean farmers, it was absolutely necessary for us to take drastic actions. Unfortunately the only defensible solution was to make all production personnel temporary redundant, says CEO Atle Eide.
- Our employees have really worked hard and made a positive contribution to the extensive restructuring which has been started, and it is with great regret we now see ourselves with no other alternative than redundancy. Particularly since the Hirtshals-area already struggles with a high unemployment rate, says Thorstein Abrahamsen.
On April 27, EU introduced anti dumping duties on Norwegian farmed salmon based on dumping accusations against Norwegian farmed salmon in the EU-market. The duties were introduced after pressure from a small group of Scottish fish farmers with a total number of employees of no more than 265, barely more than the employees of Pan Fish Denmark. A joint Norwegian fish farming industry with strong support from Norwegian Authorities has argumented against EU's measures, and considerable support has been gained from countries within the EU. However, the political and industrial pressure has so far not lead to any solution on the disagreement with EU.
The financial impact for the Pan Fish Group related to the redundancy situation in Pan Fish Denmark will depend upon if and when an agreement with EU to terminate the restrictions can be made.
Book values of fixed assets related to the operation in Pan Fish Denmark has been written down significantly in the consolidated group accounts. The financial impact for the Pan Fish Group will thus be limited, provided that the shut down is of temporary character. The company is positive with respect to the promising development in the marked for processed products and is positive to restart the production if the EU-commission as soon as possible terminates the restrictions.
- The potential upside for the company is significant if only we are given the opportunity to compete on equal terms. The situation in Pan Fish Denmark is not a unique situation for us as a company, but a consequence of the decision made by EU. I can not with my greatest desire understand that this serves EU's best interests. I hope that parties from both the EU side and norwagian side is willing to find a solution before even more people are made redundant, and before the anti dumping duties causes the industry, including farmers within the EU, permanent damage, says Atle Eide.
For additional information:
CEO Atle Eide, Pan Fish ASA, +47 911 52 977
Managing Director Thorstein Abrahamsen, Pan Fish Denmark, +45 244 94 080
Pan Fish took over 100 percent of Pan Fish Denmark (former Vestlax Hirtshals) during autumn 2004. The take over was a part of the restructuring and revitalisation of Pan Fish. The plant which is very modern had and still has a significant potential to take part in a continuously growing market for consumables. The company was well underway with an extensive operational, product and marketing restructuring when EU decided to impose trade restrictions.
- Almost 4 Danish kroner per kilo salmon in toll directly into the EU is more than we are able to carry during this reorganisation, says newly hired managing director Thorstein Abrahamsen in Pan Fish Denmark and continues: - We are in the middle of restructuring our operations, and have implemented a number of measures linked to cost savings and optimalisation of our operations, hereunder divestment of properties. These processes have already given positive results, however the implementation of anti dumping duty from EU towards Norwegian salmon, which is the primary raw material for our production, has effectively brought the positive operational and financial development to a stop.
- This is a very sad and unfortunate situation. The implementation of anti dumping duty has hit our Danish operations, which is inside the EU, with full strength. Pan Fish Denmark has struggled with weak margins due to high raw material prices, and with antidumping duties on top and thereby increased competitiveness for Chilean farmers, it was absolutely necessary for us to take drastic actions. Unfortunately the only defensible solution was to make all production personnel temporary redundant, says CEO Atle Eide.
- Our employees have really worked hard and made a positive contribution to the extensive restructuring which has been started, and it is with great regret we now see ourselves with no other alternative than redundancy. Particularly since the Hirtshals-area already struggles with a high unemployment rate, says Thorstein Abrahamsen.
On April 27, EU introduced anti dumping duties on Norwegian farmed salmon based on dumping accusations against Norwegian farmed salmon in the EU-market. The duties were introduced after pressure from a small group of Scottish fish farmers with a total number of employees of no more than 265, barely more than the employees of Pan Fish Denmark. A joint Norwegian fish farming industry with strong support from Norwegian Authorities has argumented against EU's measures, and considerable support has been gained from countries within the EU. However, the political and industrial pressure has so far not lead to any solution on the disagreement with EU.
The financial impact for the Pan Fish Group related to the redundancy situation in Pan Fish Denmark will depend upon if and when an agreement with EU to terminate the restrictions can be made.
Book values of fixed assets related to the operation in Pan Fish Denmark has been written down significantly in the consolidated group accounts. The financial impact for the Pan Fish Group will thus be limited, provided that the shut down is of temporary character. The company is positive with respect to the promising development in the marked for processed products and is positive to restart the production if the EU-commission as soon as possible terminates the restrictions.
- The potential upside for the company is significant if only we are given the opportunity to compete on equal terms. The situation in Pan Fish Denmark is not a unique situation for us as a company, but a consequence of the decision made by EU. I can not with my greatest desire understand that this serves EU's best interests. I hope that parties from both the EU side and norwagian side is willing to find a solution before even more people are made redundant, and before the anti dumping duties causes the industry, including farmers within the EU, permanent damage, says Atle Eide.
For additional information:
CEO Atle Eide, Pan Fish ASA, +47 911 52 977
Managing Director Thorstein Abrahamsen, Pan Fish Denmark, +45 244 94 080
Atle Eide CEO
Pan Fish ASA
The press release can be downloaded from the following link:
