Work on Grieg Seafood's NOK 1.9 billion (€182.4 million/$177.1 million) smolt plant project in Adamselv in Lebesby, Finnmark, is being postponed following the Norwegian government's proposal for a new resource tax, the company announced Wednesday.
The expansion of the smolt plant was to start this week, however, due to uncertainty connected with the tax proposal the investment is being put on hold.
The smolt plant in Adamselv has a production capacity of 2,000 metric tons, and the plan was to add additional production capacity to reach a total of 6,000 metric tons, and allow the fish to grow larger on land.
"Unfortunately, this has now been put on hold," Roger Pedersen, community contact at Grieg Seafood Finnmark, said.
"It benefits neither the environment, the fish nor the local communities in Finnmark, which now have fewer ripple effects than originally planned."
Work on the first construction phase was to start now, with an estimated investment of NOK 1 billion (€96 million/$93.2 million). The first phase was scheduled to be completed in 2024, providing an additional production capacity of 3,000 metric tons.
The second construction phase, with a planned investment of NOK 900 million (€86.4 million/$83.9 million), would provide an additional 3,000 metric tons of production capacity.
In total, investment in the project is estimated at NOK 1.9 billion (€182.4 million/$177.1 million).
