Seafood processor Marine Harvest has announced a restructure in Chile which will result in job losses.
The firm said in response to the weak prices in Marine Harvest Chile's main markets for Atlantic salmon it has decided to reduce smolt stocking in 2015 to 11m from 17m. This will result in a reduction of 200 man-years.
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In relation to the restructuring, Marine Harvest will make a provision of approximately US$11m in the second quarter. The corresponding cash effect is approximately US$4m.
"These measures are taken to contain losses for Marine Harvest Chile until the main markets for the Chilean salmon have recovered. Meanwhile MHG's market organisation will put a large amount of effort into developing current and new markets for the Chilean salmon through, among other things, introducing more value added concepts and new products," the company said in a statement.
"MHG has previously advocated that consolidation in Chile is a prerequisite for establishing a profitable and sustainable industry in the region. MHG believes that the current market disruptions and biological situation make this more important than ever," it added.
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