Salmon Evolution Holding signed a joint venture term sheet with Dongwon Industries, a leading seafood company based in South Korea, to develop, construct and operate a land-based salmon farming facility with an annual capacity of 20,000 tons in South Korea using Salmon Evolution’s hybrid flow-through technology. The joint venture, named K Smart Farming (“K Smart”), cost for phase 1 including capital expenditure, project management and working capital build-up, is estimated to NOK 1.6 billion ($185 million).
“We are honored to team up with a well-reputed and experienced partner like Dongwon. This collaboration is in accordance with Salmon Evolution’s overall strategy for international expansion, leveraging our in-house experience and HFS competence in developing close-to-market salmon production in collaboration with local first-class partners,” said Håkon André Berg, CEO of Salmon Evolution.
As part of the collaborations, the parties shall establish branding and marketing of premium, land-based Atlantic salmon from K Smart and Salmon Evolution in the Korean market. The parties expect to enter into definitive agreements during Q2 2021.