Shares in Benchmark Holdings PLC (LON:BMK) rose after the fish health and nutrition group announced that the production of salmon eggs at its new land-based breeding facility in Salten, Norway had started.
Benchmark – which, among other things, makes vaccines for seabass – said the Salten facility had been built to the highest standards of technology and biosecurity, and would be the most modern salmon egg production site in the world. The increased capacity will allow Benchmark to supply the global market with biosecure eggs year-round, a significant advantage for producers only possible with land-based production, the company said.
WATCH: New facility sees Benchmark Holdings bring production in-house
The opening of the facility is the culmination of a two year, £40mln investment, which will increase Benchmark's in-house capacity by 75% allowing the company to capitalise on its leading market position and the growth potential of the industry, it said.
Benchmark currently outsources part of its production to meet growing demand for its products. The new facility will enable Benchmark to bring production in-house, enhancing its profitability.
"The opening of our new facility in Salten on time is a very important milestone for Benchmark which will allow us to capitalise on our leading market position in salmon genetics and the favourable long term market trends in the industry,” Benchmark CEO Malcolm Pye said in a statement.
READ: Benchmark nudges higher as underlying earnings double in first half
"We expect it to contribute additional revenues at higher margins going forward," he added.
Shares in Benchmark, which have risen by around a third in the last year, were 4.6% up at 61.75p in late morning trade.