Norway''s Domstein ASA, have sold off their holdings in salmon farming (Fjord Seafood) and will focus only on wild fish, industrial production and sales and distribution through Domstein Enghav.
Hans Morten Sundness writes that West-Norway's Domstein has traditionally been in pelagic and whitefish, but in 1985 it began salmon farming, later merging its farming activities with Fjord Seafood. Both companies are listed on the Norwegian stock exchange; Fjord Seafood is reported to be the biggest or second biggest fish farmer in the world with 2,638 employees and a 3.713 billion Norwegian Krone (NOK) (ca. Euro470m) turnover in 2004. The same year Domstein ASA employed 535, with a 1.5 billion NOK (ca. Euro189m) turnover and it was also the biggest shareholder in Fjord Seafood.
On 24 June Domstein decided to meet its financing demands by selling all their shares in Fjord Seafood to the ship owner billionaire John Fredriksen for 440 million NOK (ca.Euro55m). This moves Domstein out of fish farming and allows it to improve its financing position and settle its future direction
CEO Rolf Domstein said: "We will use the money to grow within the distribution of fresh fish and to work to restructure the Norwegian pelagic industry," Domstein Pelagic claims its has 15-20 per cent of the Norwegian production of pelagic fish for consumer sales.
The other main division, Domstein Enghav, is one of the largest suppliers of frozen seafood in Scandinavia. One week before selling out the Fjord shares Domstein Enghav bought the traditional Oslo wholesale dealer, Inger Sorensen AS.
This makes Domstein the second largest distributor of fresh fish in Norway. According to Rolf Domstein they are on the lookout for other acquisitions.
The Norwegian stock exchange has responded to firmer prices for herring and mackerel by pushing the Domstein shares from five NOK to almost eight NOK.
