Mowi
Mowi ASA, known as Marine Harvest ASA until 2019 and as Pan Fish until 2007, is a Norwegian seafood company with operations in a number of countries around the world. The company's primary interest is fish farming, primarily salmon, the operations of which are focused on Norway, Scotland, Canada, the Faroe Islands, Ireland and Chile. The group has a share of 25 to 30% of the global salmon and trout market, making it the world's largest company in the sector. Mowi also owns a 'value added processing' unit, which prepares and distributes a range of seafood products, and a number of smaller divisions.
The company assumed its current form as a result of massive expansion in 2006, when Pan Fish ASA conducted an effective three-way merger with Marine Harvest N.V. and Fjord Seafood. The group is headquartered in Bergen and is listed on the Oslo Stock Exchange where it is a constituent of the benchmark OBX Index.
For 2023, the company reported revenue of €5.51bn, net profit of €444.4M and a profit margin of 8.1%.
History
Constituent companies
Marine Harvest
The first company to use the name Marine Harvest was founded in Lochailort, Scotland by Unilever in 1965 at the outset of the Atlantic salmon farming industry. Unilever had been developing farming methods at a research facility there. The company began operations in Chile in 1975, where fishmeal raw material, originally supplying the chicken protein farming industry, started developing alternative markets in salmon and shrimp proteins. In 1992, Unilever sold the business to Lord's Hanson and White, together with Ground Round restaurants, Tommy Armour golf clubs and a tuna processor in Long Island California. Marine Harvest International IPO on the Amex made it the first pure aquaculture play on the global stock markets. Two years later Booker Plc took the company private with the MHI shrimp division, in Ecuador, being sold to Pronaca. With ownership of the company passing to Booker plc it was merged with Booker's aquaculture subsidiary, McConnell Salmon. After deciding to divest Marine Harvest McConnell so as to concentrate on its core cash and carry business in 1998, Booker eventually succeeded in finding a buyer in July 1999. The Dutch-based nutrition firm Nutreco acquired the unit for £ 32.7 million, adding it to its fish food and salmon farming unit. Nutreco's initial attempt to further expand into the fish farming sector by acquiring the seafood arm of Norsk Hydro was blocked on the recommendation of the United Kingdom Competition Commission in late 2000, but the deal was approved in March 2001 after Nutreco agreed not to acquire Hydro Seafood's Scottish assets.Nutreco retained the name Marine Harvest for the unit's fish farming operations, and established interests in the emerging farmed cod, halibut, yellowtail and barramundi markets. In May 2005, Nutreco merged its fish-farming operations with the salmon, trout, halibut, tilapia, cod, sturgeon and caviar businesses of Stolt-Nielsen, creating a new stand-alone company, again named Marine Harvest. Nutreco held a 75% stake in the joint venture, with Stolt taking the remainder.
Pan Fish
Pan Fish Holding AS was founded in 1992 with a strategy to acquire many fish farms domestically and abroad. By 1997 the firm had made numerous acquisitions and opted to list on the Oslo Stock Exchange as Pan Fish ASA. However, the company had borrowed heavily to finance its rapid growth—by the end of 2001, debts had reached over NOK 4.7 billion. When the market price of salmon collapsed in 2001, Pan Fish encountered extreme financial difficulties, posting a heavy loss in 2002, and having to sell off assets in order to repay creditors. A major refinancing operation implemented in late 2002 coincided with the dismissal of the entire board of directors, including founder and CEO Arne Nore. The company slowly recovered over the following years, returning to profitability in 2005.Fjord Seafood
Fjord Seafood has its origins in Torgnes Invest, a company founded in June 1996 which initially operated a single fish farm in the Norwegian town of Brønnøysund. Expansion over the following four years was aggressive—by September 2000, when Fjord Seafood listed on the Oslo Stock Exchange, the company's portfolio comprised 60 ongrowing concessions, of which 50 were wholly owned, as well as a number of smolt and broodstock farms, slaughterhouses and processing factories. Fjord continued to conduct mergers and acquisitions - the purchase of Belgian fish-processing company Pieters N.V. in November 2000 was swiftly followed by the addition of ContiSea, the seafood joint-venture of ContiGroup and Seaboard Corporation.As with Pan Fish, poor market conditions saw Fjord's share price worsen dramatically in 2001, and with it the ability to pay off its debts. The company's future was only secured thanks to a NOK 700 million bail out from major shareholders that September. Attempts to grow the company through merger and acquisitions were also frustrated—a planned merger with the aquaculture businesses of Domstein and state-controlled Cermaq was aborted in June 2002 after opposition from parties including ContiGroup and Seaboard, who controlled over 20% of shares between them. Nevertheless, Fjord stabilised its financial position through restructuring and cost-cutting measures.
Merger
Moves toward consolidation in the aquaculture sector were sparked by the activity of shipping magnate John Fredriksen, Norway's richest man before abandoning his citizenship of the country in 2006. Fredriksen's first major move into the industry came in the second quarter of 2005, when Domstein's 24% stake in Fjord Seafood was sold to his investment vehicle Geveran Trading. Around the same time, Pan Fish announced that two companies indirectly controlled by Fredriksen had acquired a combined 48% of the company's outstanding shares. In October of that year, with salmon prices high, Fjord submitted an offer for a majority stake in Cermaq to the Norwegian Government, which was preparing it for a public listing. However, as with the first merger attempt in 2002, Fjord failed in its bid—this time the offer was rejected by the Government.Fredriksen's efforts to effect change finally bore fruit in March 2006, as Geveran Trading succeeded in purchasing Marine Harvest from its joint owners for €881 million, before immediately turning ownership over to Pan Fish. Geveran also sold its stake in Fjord Seafood to Pan Fish simultaneously. With its remaining shares purchased by Pan Fish, Fjord Seafood de-listed from the Oslo Stock Exchange on 6 July 2006. With regulatory hurdles in the United Kingdom and France cleared, the Marine Harvest group was brought under the control of Pan Fish by the end of 2006. To allow the merger to go ahead, the sale of the former Pan Fish Scotland division was agreed with the regulatory authorities. After an initial deal to sell the unit to Norskott Havbruk, owners of rival company Scottish Sea Farms, was called off in July 2007, Pan Fish Scotland was spun off into a separate publicly traded entity, Lighthouse Caledonia, that November.
Geveran Trading held a 28% stake in the company upon completion of the merger, a shareholding which has since increased to almost 30% as of March 2009.
Change in identity
With the creation of a much enlarged company complete, the Pan Fish management announced a complete change in its identity in December 2006. The firm's new brand was chosen to reflect each of its three main constituents: "Marine Harvest" was again revived as the new name for the company, and the Fjord Seafood slogan "excellence in seafood" and a reworked version of the Pan Fish motif were also included in the new logo. Atle Eide, CEO of Pan Fish from 2003, continued in his position, but resigned in September 2007 for personal reasons. Eide was replaced on an interim basis by Leif Frode Onarheim, before the CEO position was filled permanently by former GE Healthcare executive Åse Aulie Michelet in March 2008. Michelet was unexpectedly removed from her position in March 2010 and was replaced by former Lerøy Seafood CEO Alf-Helge Aarskog.In recent years Marine Harvest has also purchased Morpol.
In November 2019, Mowi appointed Ivan Vindheim as its new CEO, replacing Aarskog.
In 2023, the company plans to cut 435 jobs, reducing headcount by 12% as part of a cost-cutting programme that began in 2018. It also plans to optimise its business by automating processes and renegotiating agreements with suppliers. These measures are forecast to save the company 25 million euros, while insisting no jobs will be lost in the process.
Operations
Mowi produces Atlantic salmon, halibut and white fish. The company has an integrated value chain, with the company making its own broodstock in freshwater, followed by growth and maturing in seawater, harvesting, manufacturing in processing plants and distribution. Production peaked in 2015 at 420,148 metric tonnes of salmonids with figures for more recent years being slightly lower.Brand names used are Delifish, Ducktrap, Clare Island Organic Salmon, Donegal Silver Salmon, Kendall Brook, Kritsen, La Couronne, Pieters, Sterling White Halibut, Xalar.
Production locations
Europe
In Norway, in addition to the corporate headquarters in Bergen and sales offices, Marine Harvest operates about 100 seawater sites along the coast. These are supplemented with 28 freshwater sites, two broodstock plants, two hatcheries and four processing plants in.Image:J M Briscoe27 01 2008-15 56 16-03133 AQUA BOY.jpg|thumb|right|Aqua-Boy, a Norwegian live fish carrier used to service the Marine Harvest fish farms on the West coast of Scotland
In Scotland, Mowi operates 25 sea farms, plus three hatcheries, four freshwater loch sites, a harvest station in Mallaig and a processing plant in Fort William. Head office is in Rosyth and all produce is atlantic salmon. There is also a processing plant located in Rosyth.
In the Faroe Islands, Marine Harvest operates fresh water sites in Hellur, and seawater sites in Oyndarfjørður, Haldarsvík, Hósvík and Kollafjørður. Produce is Atlantic salmon.
In Ireland, Mowi operates one broodstock plant, two hatcheries, three fresh water sites, twelve seawater sites, three processing plants, all but four seawater sites in County Donegal, the latter being in County Mayo. Output is Atlantic salmon. Mowi also runs a salmon farm in Castletownbere and Inishfarnard.