Gråkjær signs contract with Cape Nordic Corporation
"Our first contract represents a benchmark, since its main focus is on the provision of the water treatment system for a large fish farm for CNC".
Gråkjær has signed a contract with Cape Nordic Corporation (CNC) to supply the Conceptual Design package for a large-scale fish-production facility near Cape Town in South Africa. Gråkjær’s Conceptual Design package contains the provision of design, processing equipment, supervision, project management, fish farm support, training and start-up.
The location of the plant in South Africa should be viewed in the light of an increased demand for fresh fish on the African markets. Every year Africa imports huge quantities of salmon and trout from Europe. The annual import of fresh Norwegian salmon alone, which is flown in, amounts to several thousand tons. “That is why we see major opportunities for the local production of land-based, sustainable fresh fish for the South African market at competitive prices,” says Erik B. Rasmussen, Danish director of CNC.
CNC, the client, is a company made up of four investors. One of them is Danish Erik B. Rasmussen, who is on the board of directors for Sashimi Royal A/S and Chairman of the Board for Maximus A/S. The three others are South African investors with respective backgrounds in the wind, oil/gas and IT sectors. CNC is collaborating with Longline Environment Consultant Ltd as advisor.
Financing of the fish-production plant will be a combination of shareholders’ capital, bank loans, export credits and local grants.
Gråkjær Has the Expertise
“Since Gråkjær’s decision in 2015 to expand its fish farm construction activities, the strategy of the Aqua division has been to ensure the development of expertise and competencies on a par with those of our agricultural division. In September 2017, Gråkjær Aqua announced that we now also possess the expertise and competencies it takes to deliver the water treatment system for the land-based fish farm. In other words, our first contract represents a benchmark, since its main focus is on the provision of the water treatment system for a large fish farm for CNC,” says Morten Malle, Director of Gråkjær Aqua.
Today Gråkjær constructs land-based fish farms in various locations in Europe in association with external contractors, who until now have provided the water treatment systems. It is expected that this positive cooperation will continue in more construction projects, depending on the client’s wishes vis-à-vis the construction process. “It will be up to the client to decide whether he wants the project to be carried out as an overall turnkey contract, or whether Gråkjær should only take care of the construction process or the establishment of processing technology in the fish farm” continues Morten Malle.
The plant will contain a hatchery, first feeding, fry, a pre-smolt unit, a smolt and grow-out units and a purge system. In the first phase the fish-production plant will be able to produce 1,800 tons of sea trout per year. The plant will have the capacity to grow from egg to a final slaughter weight of about 5.2 kg. Further capacity are planned. In the first delivery, the fish-production plant will produce sea trout, but the construction will facilitate the production of salmon in the future.
Erik B. Rasmussen explains why CNC chose to collaborate with Gråkjær: “I have worked with Gråkjær before.I know what they are capable of and what they stand for, and I also like the way they run their business. They keep their word and always stick to agreements.”
The avoidance of air transport for the many tons of fish from Europe will save considerable amounts of CO2, helping to keep the fish production sustainable in accordance with the UN’s 17 Global Goals. The fish-slaughter plant will also be powered by sustainable wind energy located centrally in relation to production. Furthermore, the limited amount of bio-waste from production will be used as fertilizer on the farmland that surrounds the plant. “That means we will satisfy Gråkjær’s goals in terms of climate and the protection of marine life, which are two of the UN Global Goals” says Morten Malle.
Partner Agreement Optimises Cooperation
The fish-production plant will be constructed on a turnkey contract basis, and the parties have signed a so-called ‘partnering agreement’. That means that the client and the turnkey contractor will jointly optimise budget, quality, schedules and construction process. The basis of the agreement is a desire for each of the partners to do their bit, to ensure the best possible execution of the project in professional and financial terms. The partners are committed to approaching the construction project in a spirit of open cooperation, based on discussion, trust, transparency and the early involvement of all parties in the project.
“In other major construction projects in Gråkjær we have seen a very positive effect in the implementation of partnering agreements: particularly when it comes to cooperation. It means that together we can ensure a construction process with a high level of transparency for the client, the subcontractors and ourselves. We will be ready with the Conceptual Design before the summer holidays, and construction will commence in the last three months of 2018,” says a clearly satisfied director, Morten Malle.