Proximar Seafood signs milestone installation contract with Techno Ryowa Ltd, finalizing all major CAPEX plans

Proximar Seafood seals final CAPEX contract with Techno Ryowa Ltd for HVAC equipment and installation, maintaining timeline and budget for Japan facility


Proximar Seafood AS signs a contract with Techno Ryowa Ltd, a Japan based engineering company for the equipment and installation related to heating, ventilation, and air conditioning (HVAC). The contract is the final CAPEX intense fixed price contract for the company's land-based salmon farming facility in Japan. The contract value is in line with the budgeted costs.

"We have now executed and signed all important contracts for the construction and installation of our state-of-the-art land-based facility in Japanand are on track to deliver on time and cost. We are pleased to see our many years of
preparations  and patience is paying off well", says CEO Joachim Nielsen in Proximar Seafood.

The construction progress of Proximar's first facility is moving ahead as planned on its first RAS (recirculation aquaculture system) facility under construction in Oyama town at the foot of Mt. Fuji in Japan. Production is planned to start up in the third quarter this year, when the first eggs will be brought into the hatchery.

"The high degree of fixed costs and low impact of the pandemic puts us in a unique position to follow our business plan and finish the project on time and within budget. With a high degree of fixed costs, our estimate of CAPEX around NOK 193 /kg (including land) is maintained, and we are therefore well-positioned in terms of our business plan."

Despite travel restrictions due to the pandemic, the construction progress has been unaffected. Japan is currently opening its strict travel restrictions, enabling Proximar to finally strengthen its presence of on-site management. Currently, Proximar is also successfully staffing up the operational capacities, with experienced people from RAS-farming of Atlantic salmon.

The increase of material costs during the last year has not had any substantial impact on Proximar's construction costs following the high level of fixed price contracts. The exposure to fluctuating prices for materials and equipment has proven to be limited. The signing of the contract with Techno Ryowa brings the level of fixed price contracts to above 95 per cent of the estimated CAPEX.  

For more information, please contact:
Joachim Nielsen, CEO, +47 92 85 55 59,
Pål K. Grimsrud, CFO, +47 99 47 75 99,  

About Proximar:  
Proximar Seafood is a Norwegian land-based salmon farming company with its first production facility under construction at the foot of Mount Fuji in Japan. Through land-based fish farming, the company will serve the Japanese market with fresh Atlantic Salmon, harvested the same day. Proximar's location, in one of the world's most important fish markets, implies significant advantages, both in terms of reduced cost and carbon footprint.

About Techno Ryowa Ltd:
Techno Ryowa Ltd is a Japan-based company principally engaged in the design and construction of air conditioning and sanitary equipment technology, sale, repair and renovation of cooling (air conditioning) equipment, as well as the research of related to each business activities. The Equipment Construction segment is mainly engaged in the design and construction of equipment on air conditioning and sanitary equipment technology, the design and construction of electrical equipment work, as well as the sale of cooling and heating equipment associated with related works. The Company employs approximately 850 people and is listed on the Tokyo Stock Exchange.