Tasmanian salmon producer and processor Tassal is raising $100 million to help it meet growing domestic demand for salmon.
The company plans to raise the money through an $80 million institutional placement and a non underwritten share purchase plan to raise up to $20 million.
The planned growth initiatives include accelerate growth in fish biomass towards Tassal’s target of 5kg hog.
The company says it plans to plough $95 million into the rollout of improved net technologies and feeding barges to improve salmon survival rates and feed conversion.
Investment of $53 million will be used to establish salmon farming operations in Okehampton and oceanic sites in Storm Bay, and $16 million will go towards production automation and additional processing capacity across De Costi and Tassal’s salmon operations to meet increased demand and to lower costs.
Tassal says these initiatives are expected to deliver an additional 2,500 to 3,000 hog tonnes of harvested salmon each year to FY21.
“Tassal expects to invest $270 million in capital expenditure over the next five years, with forecast return on this capital expected to exceed current levels," the company said.
