The international company Salmon Evolution recently announced that they and the Korean firm Dongwon Industries have agreed to replace the existing joint venture agreement with a technical advisory agreement. Thanks to the agreement, Salmon Evolution will provide technical advisory services on market terms to the company based in Korea. This positions Dongwon Industries to advance the project on its own terms, with full responsibility for project financing.
In the update on the partnership, Salmon Evolution highlights that they will remain a minority shareholder and key contributor in the project, although its current 49% ownership is expected to be diluted over time. Also, Salmon Evolution retains a five-year purchase option for up to 33% ownership in the project at market terms.
Finally, the company will provide technical advisory services on market terms, including provisions for potentially significant royalty payments linked to certain operational milestones; and they will have no further investment commitments under the new agreement.
Strategic Priorities in the Near to Medium Term
According to the global company, this updated structure reflects Salmon Evolution’s strategic priorities in the near to medium term, hereunder continued focus on operational excellence and phase two project execution at Indre Harøy, while at the same time leveraging the significant human capital built up in recent years.
The new model also underscores Salmon Evolution’s commitment to capital discipline with phase three at Indre Harøy remaining the highest priority when it comes to capital allocation on growth projects.
Significant Expansion
Salmon Evolution is the global leader within land-based salmon farming. For them, pioneering the hybrid flow-through system (HFS), “Salmon Evolution is extending the ocean potential by creating optimal growth conditions in a controlled environment on land. This approach, capturing the benefits of both land-based and sea-based farming, puts biology first and limits operational and biological risk.
Salmon Evolution is strategically located the heart of the global aquaculture industry on the west coast of Norway, where the company has its first facility and global center of excellence fully operational at industrial scale. Enabled by proof of concept at Indre Harøy, Salmon Evolution targets significant expansion.
Total Protein Provider
On the other hand, Dongwon is a global seafood company with one of the world’s largest fleets, and a comprehensive logistics enterprise equipped with state-of-the-art cold chain and port handling facilities. As a Total Protein Provider, Dongwon offers over 3,000 varieties of food products and comprehensive protein-based foods, leading the way toward a healthier and more sustainable food culture.
The company started as a marine fishing ship in 1969 and has now growth into a company that takes the lead in protecting the marine environment. Dongwon Industry has obtained the first fishing MSC certification in Korea and is continuing marine conservation activities such as coastal clean update. “We are leading the sustainable fisheries industry by building a land salmon farm complex, moving from fishing to farming”.
Now, as Korea’s leading company, Dongwon is expanding into advanced aseptic and secondary battery material businesses, spearheading the transition toward a greener, more sustainable future.
Some days ago, Dongwon Industry announced the launch of ‘Dongwon Norwegian Smoked Salmon Slices’, which allows to easily enjoy premium gourmet food, and has entered Costco stores nationwide. Dongwon Norwegian Smoked Salmon Slice‘ is made with Norwegian salmon carefully selected by the company Industrial, the largest domestic fishery company.
Dongwon Industry has planned this new product to provide a special gourmet experience to consumers who are burdened by the cost of eating out due to high prices. ‘Dongwon Norwegian Smoked Salon Slices’ is vacuum-packed in a thinly sliced form, so it can be easily used for various dishes.
