Clearwater Seafoods has entered into agreement to form a joint venture with Quin-Sea Fisheries to secure future processing of a shrimp plant.
The new joint venture will take over operations of the St Anthony Seafoods plant, Canada, as it responds to the decline in northern shrimp fishery.
Located on the Great Northern Peninsula with proximity to the resource, raw material supply to St Anthony Seafoods plant has been reduced in recent years. The transactions aim to focus on the utilisation of the facility by bringing together the expertise and market reach of the two companies.
As a result, the joint venture aims to enhance the economic viability of the St Anthony operation and benefit the local community.
Ian Smith, CEO of Clearwater Seafoods, said: “We are pleased to bring a new partner into the St Anthony plant who is an experienced Newfoundland operator that understands the importance of local commitment and local investment.
“The transaction will strengthen processing volume and look to diversify species processed at the St Anthony plant, ensuring the continued viability of the operation and employment in an important coastal community in Newfoundland and Labrador.”
Under the terms of the deal, Quin-Sea Fisheries will assume management of the plant on behalf of the new joint venture. Meanwhile, both companies will work together with local stakeholders to ensure a smooth operational transition in advance of the 2020 season.
Simon Jarding, managing director of Quin-Sea Fisheries, said: “Quin-Sea has invested to grow its operations in Conche benefiting the communities of the Northern Peninsula.
“Like Conche, St Anthony has a prime location and a highly experienced workforce, ideal for both current production of shrimp and crab but also for the production of groundfish in the years to come. Our partnership with Clearwater will ensure a stable and long-term operation for the benefit of the partners, the employees, and the communities of the Northern Peninsula.”
Subjected to regulatory approval, the transaction is expected to close on 31 March 2020.
© FoodBev Media Ltd 2019