Land deal enables phase 3 for Nordic Aqua in China
The land-based salmon farmer has entered into a 30-year lease agreement for the expansion of its facility to a capacity of 20,000 tonnes.
The lease agreement applies to land and production facilities and is concluded with the authorities in Xiangshan through the affiliated company, Xiangshan Strait Economic & Technological Cooperation Co., Ltd.
"The agreement enables the development of phase 3 of Nordic Aqua's land-based aquaculture facility in Ningbo, China, with an annual production capacity of 20,000 tonnes. This includes an increase of 12,000 tonnes beyond the 4,000 tonnes already in production, and the 4,000 tonnes under construction (first harvest planned in the third quarter of 2026)," the company writes in a stock exchange announcement.
At the same time, existing lease agreements for phase 1 and phase 2 are extended to 30 years, so that all three phases have the same duration. There is also an option for Nordic Aqua to purchase the entire facility if the company wishes.
Local support
"The agreements formalise the necessary long-term conditions for the development of our business and are yet another confirmation of the dedication and support we experience from local authorities in the region," said Nordic Aqua chief executive Ragnar Joensen.
According to the agreement, Xiangshan Strait Economic & Technological Cooperation Co., Ltd. will develop infrastructure and supply services according to Nordic Aqua's specifications. These will be leased by Nordic Aqua on a long-term basis.
"Infrastructure development normally constitutes 40-45% of the total investments for a land-based salmon farming facility like Nordic Aqua. Through the concluded agreement, this part of the investment is externally financed at attractive interest terms," Nordic wrote.
A final investment decision for the development of phase 3 is expected during 2025.
