Iceland-based fishing company Síldarvinnslan has decided to close its fishmeal plant in Seyðisfjörður, affecting 12 employees and several contractors.
Icelandic media outlet mbl.is writes that the company will extend notice periods to four months and offer seasonal work at its processing plant in Neskaupstaður.
Shrinking Catches and Higher Costs
The company says the environment for fishmeal and fish oil production has worsened sharply. Catch quotas for pelagic species have fallen, and a larger share of landings now goes to food production rather than industrial use.
ICES has advised a 40% cut in blue whiting catches—previously the primary raw material for the Seyðisfjörður plant—next year.
Rising costs and more taxes on the sector have also pushed the company to cut back.
Facility Located in Hazard Zone
The plant’s buildings are located in an area at risk of snow and landslides. No protection measures are planned for the next decade. The company says the closure is also about staff safety.
Local Development Support
Síldarvinnslan has agreed with local authorities in Múlaþing to fund a consultant for 12 months to explore new business ideas for the site.
The municipality will lead the work while the company covers costs. CEO Gunnþór Ingvarsson said the decision was difficult but needed: “We hope cooperation with the municipality will create new opportunities for the area.”