Norwegian salmon equipment manufacturer, Stranda Prolog, has filed for insolvency with Møre og Romsdal district court.
The company was prepared for continued growth and had a large order backlog when COVID-19 hit. Order intake was good at the start of the pandemic but gradually softened, the company said. Limited order intake, significant cost increases on legacy contracts, and a lack of raw materials and labor to complete the projects gradually affected profitability and liquidity.
“The management team and employees have worked hard to reduce costs and complete projects. Despite some positive signs, there have been continuous delays in ongoing projects and contract negotiations. At the same time, the number of outstanding requests and quotes has never been greater than now,” the company said. “Our lender has shown great flexibility throughout the demanding market situation, but the problem could not be resolved given the challenges at hand.”
Stranda Prolog is a supplier of aquaculture land-based equipment, such as pumps, graders and automation solutions.