The Icelandic seafood technology company Skaginn 3x is closing its base in the important fishing and fish farming town Isafjord with the loss of 27 jobs.
CEO Sigstein Gretarsson said things had become very difficult over the past few months with unrest in the markets following Covid and the outbreak of war in the Ukraine.
He said the company had to undergo an extensive reassessment of its obligations following a change of ownership.
The company had turned over every stone to save the Isafjord office, the CEO said, but in the end integration with Akranes was the only realistic solution.
All 27 employees in Isafjord have lost their jobs with the operation transferred to its other Iceland office in Akranes.
Arna Lara Jonsdottir, the mayor of Isafjord said the new was not just a blow for the community, but more especially for those who had lost their jobs.
Skaginn3X has its headquarter in Iceland, but has offices and partners around the world.
It is seen as an innovative producer of high-tech processing systems for the global seafood and food processing industry.
The company offers a range of patented chilling, freezing and thawing solutions as well as efficient food processing systems designed to maximize product quality, increase yield, throughput and overall efficiency.
In late 2020 the German processing machinery supplier Baader announced plans to acquire a 60% shareholding in Skaginn 3X which at that time was a competitor. It later acquired the remaining 40%.
Baader is also one of the main providers of machinery for salmon processing.