The CEO of Norwegian salmon farmer and exporter SalMar on Friday said his company established a subsidiary last year with an executive accused of smuggling salmon from Vietnam into China, contradicting earlier characterizations of their relationship.

CEO Trond Williksen told IntraFish sister publication Fiskeribladet Thursday that the executive, who was arrested by Chinese authorities in conjunction with a crackdown on a salmon smuggling operation located in Vietnam last month, had been affiliated with SalMar since 2007, but acted as a customer, and not an official representative of the company.

But on Friday, Williksen gave an updated account that shows a far closer relationship.

"She bought fish from us and resold it in several markets in Asia," Williksen told Fiskeribladet via email Friday. "We have collaborated and over time we have exchanged ideas and developed plans for how we could continue cooperations."

Williksen further noted that while the executive was never an employee, the two established the new business last year in Singapore, with Salmar as the main owner. The company has not bought or sold any product, and is only established on paper, Williksen said.

The company's relationship with the executive will now depend on how the legal proceedings against her pan out, Williksen said.

Chinese authorities announced earlier this week a crackdown on a major salmon smuggling ring last month uncovered tens of millions of dollars in fraudulent trade.

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SalMar admits it co-owns company with alleged Norwegian salmon smuggler