Mowi ASA: Rebuilding of Kritsen's smokehouse in Landivisiau, France
Following the fire at Kritsen's processing plant for smoked products in Landivisiau, France in July 2018, the Board of Mowi ASA has decided to build a highly automated and modern smokehouse at the same site to replace the original plant. France is one of the biggest salmon markets globally and the Board's decision ensures the continuation of Kritsen's and Mowi's long tradition of producing high-quality smoked products in the country.
France is also one of the most sophisticated markets with a wide range of premium products, and the high-end market for smoked salmon in France continues to grow, led by branded products. Therefore, the Board has decided that the next launch of the MOWI brand will take place in France.
In relation to the rebuilding of Kritsen, Mowi will record a restructuring provision for industrial and social reorganization of approximately EUR 19 million. Capital expenditures for the new factory are estimated to EUR 23 million. Expected insurance refunds amount to approximately EUR 17 million. The restructuring provision and insurance coverage will be recognized in the Profit and Loss accounts in the second quarter under "Restructuring cost" and "Revenue", respectively.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.