During the spring and early summer, two major operational optimisation initiatives have been underway within the Hampiðjan Group.
Consolidation of Fishing Gear Operations in Norway
The first initiative concerns the consolidation of two Norwegian subsidiaries engaged in fishing gear production and the sale of equipment to fishing companies.
Following the establishment of ELDI, where the Group's aquaculture operations were consolidated into a separate group, Vonin Refa in Northern Norway was split into two separate businesses. The aquaculture activities became part of ELDI, while the fishing gear operations continued under the name Vonin Refa, with production primarily located in Tromsø and Finnsnes.
Hampiðjan also owns Mørenot Fishery in Norway, which provides fishing gear production and services to fishing companies across the country.
Market conditions in this segment have been challenging in recent years. This is primarily due to a significant reduction in Barents Sea cod fisheries following quota cuts, combined with restrictions on the sale of fishing gear to Russian vessels that previously sourced services in Norway. In addition, quotas for mackerel and blue whiting have been reduced. While quotas for haddock and herring have increased, along with growth in crab fisheries, these developments only partially offset the decline in other key fisheries.
As a result, operating conditions for both Vonin Refa and Mørenot Fishery have been difficult, particularly during the current year. Extensive cost-saving measures have already been implemented in both companies. Following the separation of Vonin Refa's operations, the next logical step is the consolidation of the two companies under a single entity, Mørenot Refa.
This consolidation creates further opportunities for operational efficiencies, including the rationalisation of facilities, discontinuation of unprofitable activities, and more efficient utilisation of the workforce, while maintaining a high level of service.
Consolidation of Trawl Door Production and Sales
The second initiative relates to the consolidation of trawl door operations, covering both production and sales and marketing.
The Hampiðjan Group has operated two strong brands in this segment: Injector, owned by Mørenot Fishery, and Vónin trawl doors, owned by Vónin in the Faroe Islands. Both brands are well-established with solid market positions.
Injector trawl doors have been manufactured by Baltic Sea Steel, a subsidiary of Mørenot Fishery located in Plunge, Lithuania, which offers advanced facilities and over 30 years of experience in producing large-scale trawl doors. Vónin trawl doors, on the other hand, have been produced by a subcontractor in Lithuania and are characterised by advanced technical features, including remote control functionality that allows operators to optimise trawl opening and precisely adjust fishing depth.
Together, these two product lines provide a comprehensive offering that meets the diverse needs of trawler fleets across different fisheries.
As part of the optimisation process, ownership of Baltic Sea Steel will be transferred fully to Vónin, and all trawl door production will be consolidated in Plunge and this will improve production margins.
The expected increase in EBITDA contribution is expected to be around 1,2 m€, with partial effect in the second half of this year and nearly full effect in next year.
Further information is provided by Hjörtur Erlendsson, CEO, at 664 3361.
