Royal Greenland will not close factory in Ilulissat

Royal Greenland's new CEO, Toke Binzer, is now commenting on the matter of a possible closure of Polar Seafood's factory in Aasiaat, which has been causing concern and political debate for weeks.

And the CEO of Greenland's largest company rejects the closure of the shrimp and fish factory in Ilulissat.

– Royal Greenland has a special ownership structure, but we operate on the same terms as others in the market. My responsibility is to ensure the responsible operation of our company – for employees and local communities.

- Therefore, closing a well-functioning factory is not a solution, just as we cannot give up the shrimp quotas that are necessary for production at our factories, Toke Binzer tells Sermitsiaq.

The announcement from Toke Binzer comes in connection with the prospect that Polar Seafood will close the factory in Aasiaat in the autumn.

Royal Greenland thus rejects Polar's proposal to close the shrimp and fish factory in Ilulissat, which employs 120-150 people, in order to save the factory in Aasiaat.

Suggestions for several solution models

As Sermitsiaq wrote last week, Naalakkersuisoq for Fisheries Peter Borg, D, has not given up hope of finding a solution to avoid a closure of Polar's factory.

But it is the acquisition and thus Polar Seafood and Royal Greenland that are forced to offer possible solutions, the minister emphasizes.

- We have had a good dialogue with Polar Seafood. In the negotiations with them, we have proposed several solution models for how we believe the Aasiaat factory can be saved. We are happy to continue that dialogue in the negotiation room, says Toke Binzer.

Meetings have been held between the CEO of Royal Greenland and the CEOs of Polar Seafood Greenland and Polar Seafood Denmark, Bent Salling and Henrik Leth, to clarify the options. According to Bent Salling, however, it has not been possible to find common ground. There is an explanation for this, Binzer emphasizes.

- Royal Greenland has contributed constructively and is willing to cooperate in finding a solution. But these must be solutions that we can stand by. We cannot enter into agreements that result in financial losses or create uncertainty for our employees in Ilulissat and elsewhere, says Toke Binzer.

The Ilulissat factory is an important asset

Of Royal Greenland's almost 40 factories and plants in Greenland, the three largest factories are located in Ilulissat, Sisimiut and Maniitsoq. The factories in Ilulissat and Sisimiut primarily produce shrimp, while the factory in Maniitsoq primarily produces cod.

- We have invested significantly in our factory in Ilulissat and are continuously modernizing it. It is an important asset for Royal Greenland and for the city's citizens, says CEO Toke Binzer.

As Sermitsiaq has previously described, Royal Greenland plans to invest in its existing factories and procurement facilities in Greenland. Over the next three to five years, the company will invest DKK 500–600 million in streamlining production to optimize the value of the available raw materials.

Green light for investments in Sisimiut

Royal Greenland's board of directors has just approved an investment of DKK 20 million in shrimp maturation tanks at the company's factory in Sisimiut.

The tanks will prepare the shrimp for peeling and cooking. In addition, there is an investment program for further automation of, among others, the factories in Ilulissat and Sisimiut.

- We are continuously investing in developing and making our factories more efficient, because they are central to our business and for jobs in large parts of the country, says Toke Binzer.

Royal Greenland's CEO is open to collaborating with Polar Seafood to handle the shrimp supply, which is putting pressure on the country's factories. However, it will not be by closing the group's factory in Ilulissat, he states.

- I have no problems with collaborating across the industry. If it benefits Greenland, there is value in collaboration between the companies. But solutions must make sense for both parties, and closing our factory in Ilulissat is not part of that, concludes Toke Binzer.