Síldarvinnslan expands fishmeal productionSíldarvinnslan is expanding fishmeal production capacity

Icelandic fishing and processing company Síldarvinnslan has announced plans to substantially increase the production capacity of its Neskaupstaður fishmeal factory, alongside adding a smaller production facility for use in between main seasons.

Current capacity at the Neskaupstaður site is 1400 tonnes per day, and this is to be boosted to a 2380 tonne daily throughput rate, as well as an increase in roe production.

According to the company, there are too many fishmeal production sites in Iceland, and Síldarvinnslan has already closed down its Helguvík plant as it has streamlined its production over fewer facilities.

The nature of the industry is that fishmeal plants need to have the capacity to cope with large volumes over relatively short periods of time when fishing seasons are at their height, as well as being able to maintain steady production of fairly small volumes of offcuts from fish processing throughout the year.

Síldarvinnslan’s plans take this into account, with the new main factory designed to handle more than 2380 tones of raw material when fishing is heavy, while a separate installation will be able to process a couple of hundred tonnes per day – enough to handle production offcuts from groundfish or other processing, which also ensures that raw material can be processed at its freshest.

Construction at the Neskaupstaður site will be split into two stages, starting with the erection of a 2000 square metre building with heavy-duty ventilation and odour removal systems, followed by the installation of processing equipment. The first stage investment is put at ISK2.30 billion, and a further ISK2 billion is earmarked for the second stage during which systems designed to increase production will be installed. This will also be carried out in stages so as to minimise the factory’s usual activity.

An ISK500 million investment is going into expanding roe production, with a new 300 square metre building and associated equipment.

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