Hofseth BioCare (HBC) has entered into an agreement to acquire Tine's spray drying facilities at Berkåk on confidential terms. The transaction takes effect from 1 January 2013, and enables Hofseth Biocare to gain full control over its entire protein value chain from sourcing of raw material through to final product.
Currently, HBC transports protein-concentrates to Sweden and Denmark, for external drying processing.
- The acquisition of the Berkåk plant makes us self-reliant on spray drying capacity, even after our expansion at Rørvik. Spray-drying is core to our production process as a crucial step to reach optimal quality in terms of taste and odour, which are important features in the human nutrition market. We now gain full control of our entire protein value chain at a very reasonable price, and this makes us the only player able to offer high quality concentrated salmon protein with in-house control of the entire production process, says CEO Sjur Jenssen in Hofseth BioCare ASA.
The facilities at Berkåk have an annual capacity to handle some 4 000 tons raw material of soluble protein-concentrates, giving some 2 500 tons of finished dried products. Investment cost for a green-field project for a similar production facility is estimated at well above NOK 250 million.
As part of the transaction, HBC also continues the working relationships with the current work force at Berkåk.
- The disposal of Berkåk is part of Tines strategy to centralize activities within 2013. However, it is important for Tine to secure continued employment for its employees, and we are happy that a serious company like HBC will maintain the operations at Berkåk in a good way, says senior advisor Finn Bjørgo in Tine.
The Soluble Protein has great potential in human applications. Increased iron uptake and weight management are some of the application areas.
Sjur Jenssen, CEO Hofseth BioCare ASA
Tel: +47 9155 3514
Email: sj@h-bc.no
About Hofseth BioCare:
Hofseth BioCare is a Norwegian biomarine company with the key objective to provide high value added biomarine ingredients for human applications. The Company is founded on the core value of sustainability and optimal use of natural resources. Through innovative production technology and logistics, Hofseth BioCare is able to preserve the quality of protein, calcium and oil extracted from fish off-cuts. Products that previously could only be used as animal feed can now be made suitable for human consumption. HBCs objective is thus to contribute to efficient use of marine resources and entering the higher profit market of quality ingredients for human applications.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.