Royal Greenland will invest half a billion

- Over the next three to five years, we will invest between 500 and 600 million kroner in land-based facilities in Greenland. This has been decided by Royal Greenland's board of directors.

This is what Toke Binzer, the new CEO of the self-government-owned fishing group, says in an exclusive interview with Sermitsiaq.

Toke Binzer and his predecessor, Preben Sunke, presented the historically large investment plan that will strengthen Royal Greenland to the board just before Christmas.

With the board's approval, the investment plan fell into place, so it must be described as good news for Royal Greenland and for Greenland.

Many of Royal Greenland's 38 factories and procurement facilities in towns and settlements in Greenland have been in need of modernization for a number of years.

- We have made a plan for how we will do it, says Toke Binzer.

The group's factories and procurement facilities in Greenland are, without exaggeration, both very old and worn out. In a nicer word, they are outdated. But a new investment plan requires cleaning up and massive investment to make production more efficient, the CEO believes.

Needs a loving hand

- We can see that Royal Greenland's land-based infrastructure in many places needs a helping hand, states Toke Binzer.

In recent years, the fishing group has invested 2.5 billion kroner in the construction of a handful of new, efficient and ultra-modern trawlers through a gigantic investment program.

With the major investment program for the land-based facilities in Greenland, the crown jewel of the self-government has begun to significantly upgrade.

An efficient and modern production system will streamline Royal Greenland's activities on land.

Investing 20 million DKK in Sisimiut

This year, according to Toke Binzer, Royal Greenland plans to invest approximately 20 million kroner in so-called shrimp maturation tanks at the company's large shrimp factory in Sisimiut.

In the tanks, the shrimp must be prepared to be peeled and cooked.

The company is in full swing preparing the tender documents for the Sisimiut expansion.

- The maturation tanks can give us greater earnings on shrimp, which is one of our core businesses, we make good money from, explains Toke Binzer.

Attu and Sarfannguit

Royal Greenland will also start investing a total of approximately 30 million kroner in new pilot projects, i.e. small facilities, in the settlements of Attu and Sarfannguit this year. These are extensions and conversions in connection with existing land facilities.

Royal Greenland is building a freezer at both locations, while the rest of the factories are the existing facilities.

- We have created a concept for expanding the smaller factories according to the same model that we have used in Tasiilaq.

- The pilot projects will show how quickly, flexibly and cheaply we can expand in small places, he says.

Cod - the new gold

Toke Binzer says there are several reasons why Royal Greenland is investing in land development.

- Firstly, the land-based facilities have a historical backlog in investments. In many places, we have dilapidated facilities that need a loving hand.

- Secondly, we want to streamline production. This is important in both large factories and smaller plants so that we can get the most out of the raw materials as efficiently as possible.

- Thirdly, we want to be able to produce more cod, as cod quotas are growing and shrimp quotas are decreasing, says Toke Binzer.

With sky-high global cod prices, cod has become the new gold for Royal Greenland, just as halibut and shrimp have been for many years.

- Therefore, we need to prepare ourselves to convert some of our production on land to the increasing quantities of cod. And the production must be efficient, he says.

Binzer has moved in as CEO at Royal Greenland's headquarters in Nuuk on December 1. He comes from a similar position at the telecommunications and postal company Tusass.

Binzer: - Super exciting job

The self-government-owned Tusass delivered a profit after tax of 124 million kroner in 2024, or slightly more than the previous year.

Binzer has had something of a baptism of fire as he is now in charge of implementing the major investment program in the loss-making Royal Greenland.

It is a company that has struggled with huge losses in its foreign operations, especially in Chile and Norway. 2024 was another year of red numbers in Royal Greenland's accounts. Last year, the group had a deficit of almost 200 million kroner before tax. The 2025 accounts will be published in the spring.

Toke Binzer says about her new top job:

- I have got a super exciting job. In the future, Royal Greenland will be a more efficient commercial and profitable company, once we have made investments of half a billion kroner.

- It is our responsibility as a self-governing company to give back to society, and I am deeply aware of that.