Proximar’s Japanese project enters final stage

Proximar Seafood site, Japan, under construction

The land-based salmon farm being built by Proximar Seafood near Japan’s Mount Fuji has taken a major step towards completion, following the signing of a contract with Japanese engineering company Techno Ryowa.

Techno Ryowa will be providing equipment and installation related to heating, ventilation, and air conditioning.

Proximar says the agreement is the final fixed price contract for the project involving capex (capital expenditure) and is in line with budgeted costs. More than 95% of the estimated capex for the project is now covered by fixed-price contracts.

The RAS (recirculating aquaculture system) farm is being built at the foot of Mount Fuji to serve the Japanese domestic market.

Proximar CEO Joachim Nielsen said: “We have now executed and signed all important contracts for the construction and installation of our state-of-the-art land-based facility in Japan and are on track to deliver on time and cost.

“We are pleased to see our many years of preparations and patience are paying off well”.

The company said that construction is moving ahead as planned in Oyama town, near Mount Fuji.

Production is planned to start towards the end of this summer when the first eggs will be brought into the hatchery.

Nielsen added: “The high degree of fixed costs and low impact of the pandemic puts us in a unique position to follow our business plan and finish the project on time and within budget. With a high degree of fixed costs, our estimate of capex around NOK 193/kg (£16.53/kg), including land, is maintained, and we are therefore well-positioned in terms of our business plan.”

Proximar said that despite the impact of Covid control measures in Japan, construction progress has been unaffected.

Japan is currently opening its strict travel restrictions, enabling Proximar to finally bring in more on-site management.

Proximar said it is also now staffing operational positions, with people with experience in RAS farming Atlantic salmon.

The company pointed out, however, that the increase of material costs during the last year has not had any substantial impact on Proximar’s construction costs following the high level of fixed price contracts.

Exposure to fluctuating prices for materials and equipment has proven to be limited, Proximar said.

Joachim Nielsen