1 / 24

FROM SEA FARMING EXPORT TO INTERNATIONAL HI-TECH INDUSTRY

FROM SEA FARMING EXPORT TO INTERNATIONAL HI-TECH INDUSTRY. SINOR’s PROJECT IN SHAPING. One vertically integrated production unit 10.000 t of yearly production Norwegian Atlantic Salmon Processing and total distribution logistics. SINOR BACKGROUND.

haig
Download Presentation

FROM SEA FARMING EXPORT TO INTERNATIONAL HI-TECH INDUSTRY

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FROM SEA FARMING EXPORT TO INTERNATIONAL HI-TECH INDUSTRY

  2. SINOR’s PROJECT IN SHAPING One vertically integrated production unit 10.000 t of yearly production Norwegian Atlantic Salmon Processing and total distribution logistics

  3. SINOR BACKGROUND Sinor has 22 years of experience of assisting European companies into the Chinese market Sinor has decided to concentrate from 2009 on establishing and managing companies in the seafood marked in China, based on Norwegian skills and state of the art technology Sinor has established crucial relationships with necessary official bodies in the Chinese seafood sector Sinor has established strategically alliances with Norwegian suppliers in the whole seafood chain

  4. FASE 1: A STRATEGIC PLAN for DEVELOPMENT OF THE CHINEESE LAND BASED AQUA CULTURE INDUSTRY based on extensive SCANDINAVIANRAS TECHNOLOGY, OPERATIONAL MANAGEMENT & INDUSTRIAL COMPETANCE and deep CHINEES CULTURAL, STRUCTUAL & MARKET KNOW-HOW

  5. 2010 FACTS and FIGURES 2010 aqua culture production is 43 mill. ton at value of 63 bill. US $ China is no 1 in production with 20 mill. ton (almost 50% of total world production), but low sales value. China goal 2020: 40 mill ton – same as world production 2010 !! Norway has an annual production of 3 mill. ton out of which salmon represent 1.3 mill. tons, but high sales value. Aqua culture annual growth rate is 10 % which is double of Norwegian present production, Sinor has delivered the world largest recirculation plant (RAS) to China in 2010 with capacity of 1000 tons annually.

  6. 2012 BACKGROUND Development of world production of seafood divided into catch and farming: Catch volume leveling off Farming significant growth, and outperform catch within few years Growing demands for sea food world wide and in China RAS (recirculation plant) technology now available in full scale. Feed technology and efficiency becomes green; will boost further growth in industry. DNA and other fast growth and resistibility parameters continue to improve.

  7. BEFORE 2025: WORLD POPULATION 10 BILLION • Depending on certain assumptions about affluence, diet composition and food waste, the calculations imply an increase in total food production of 70% on current production level during the same period. • The majority of this population will be urbanized. • A significant part of the 70% must come from seafood.

  8. 2020: FARMING IN DRIVERS SEAT2030: RAS PLANTS DOMINATING IN 1000 TONS (app. fig!)

  9. YEARLY CONSUMPTION OF SALMON What if one third of China’s population approaches 1 kg/person ?

  10. THE PROSPECT OF THE BLUE ECONOMY • Sea-caught fisheries will seek to maintain present levels of production. • Aquaculture production will continue its ongoing trend to provide a larger proportion of total fish production. • Total fish consumption per head will increase for health and demand reasons. • The limitation in sea water locations due to both environmental and legislative reasons, will support and move the sea food farming from the sea to land based locations. • Availability of water resources provides opportunities for R.A.S. independent of other parameters (R.A.S. cleans water, thus preventing diseases by providing a closed system that can be monitored in detail).

  11. OPPORTUNETIES CHINA Chinese potential value improvement/cost reduction by domestic production: 60 % Landed price in China of Norwegian/UK/Chile air borne farmed salmon is more than 2.5 times production cost in Norway. (Import value (cost) for salmon products due to tolls, taxes and airway transportation of fish on ice) CO2 issue critical Cold shoulder policy from official China. Production in China can solve the problem UK/Chile has taken over leading import market position

  12. BASIC BUSINESS IDEA

  13. CHINEESE SEA FOOD DEMANDS Market potentials are big. China goal 2020: 40 mill ton – same as world production 2010 !! Product development needed High volume of fresh water farming necessary Need for improvements in present installations, feeds and breeding methodology Operational skills improvements Lacking functioning RAS technology, Local capital available Foreign capital triggers multiple funding RAS - Move from farming to advanced industry We have well established relationships with necessary official bodies

  14. BUSINESS CASE Establish a 10.000 MT per year Salmon/Trout production unit in Coastel City. Local government is facilitating. Production DESIGN – based on latest RAS technology. Surround the production unit with service providers to RAS production by offering preferential policies. Develop new product segments and distribution network.

  15. PURPOSE, GOALS AND SCOPE The purpose is to invite Scandinavian capital to invest in local RAS production in China. Sinor thru newco NORSI: The goal is to play a significant role in the development of industrial RAS based seafood market in China First investment will be a salmon RAS factory in a Chinese province where all licenses will be provided. Licenses will be released when a 500 mill project introduces and approves in Qingdao.

  16. INITIATORS SINOR AS: Morten Tangen, Xiao Ying Gao WIROJA AS: Willy Roger Jacobsen KABI AS: Asbjørn Birkeland

  17. BASIC MODEL Founders and Initiators: SINOR,…………….., NORSI AS INVESTORS ADVISORS AND INVESTMENT BANKING STRATEGIC ALLIENCES NORASI AS Production Company A CO-INVESTORS / JV Production and Sales Company B CO- INVESTORS /JV

  18. IMPLEMENTATION Localisation Licence – OK by local government Local company with acquired land & water licence & certificates – local company initiated with registered capital of RMB 10 mill. Land & water identified and reserved at a value of RMB 20 mill. Sinor will indirectly hold the shares of local company. Foreign investment NOK 500 mill – will trigger local borrowing at least 3 times the investment. Total investment case estimated to NOK 500

  19. COST OF PLANT RAS production plant depends on cleaning technology : What type of recirculation is required, i.e. how many m3 of used water is exchanged with fresh water per time unit. the Feed Conversion Rate (Efficiency: Feed/Biomass) It is assumed that in the planned factory, a consumption of 400 l/kg produced salmon will be sufficient. Total estimated cost for the 10.000 T plant including hatchery, purging , butchering and processing as well as civil work and total plant in-door: NOK 500mill. The investment will be accumulated over 36 months. First income/revenue starts after 6 months.

  20. KEY NUMBERS 1 INVESTMENTS Infrastructure NOK 90 mill Plant NOK 410 mill (20% is procured locally) COST ESTIMATES: FIXED COST total year Maintenance, operation: 5 mill Manpower will build up over 36 months from 20 man/year to 35 man/yearNOK 2.0 mill to 3.5 mill First year 2 foreigners x 1.5 mill: 3 millSecond year onwards 1 foreigner: 2 mill VARIABLE COST (per kilo) Smolt NOK 1 Feed NOK 11 Power NOK 4 Other costs NOK 3 Butch/packing NOK 3 TOTAL VARIABLE NOK 22

  21. KEY NUMBERS 2 Production volume full capacity SALMON: 10.000 T/year Production volume SMOLT: 8 mill per year of which 5 mill is sold to local farmers at a price of NOK 15 per pc. Fixed income per year on SMOLT only: NOK 75 mill. First SMOLT can be sold 6 months after start up. Selling price: Live Salmon is generating NOK 150 per kg Butchered / Head on ice NOK 90 per kg Transport og sales costs: Selling cost per kg NOK 1 Distribution: NOK Live NOK 3, Butchered NOK 1 Existing technology is mini RAS equipment mounted on trucks. Duration of transport limited to 18 hours. New technology pending increases transportation time to 50 hours. For butchered products existing distribution system is operating.

  22. KEY (CONSERVATIVE) NUMBERS FULL YEARLY PRODUCTION SALES: 10Mkg x 90 kr/kg: 900 MNOK VAR.COST: 10Mkg x 22kr/kg: - 220 MNOK FIXED COST x 10!: - 100 MNOK CAPITAL COST 10%: - 50 MNOK SELLING & DISTRIBUTION: - 40 MNOK UNCERTAINTY 20 %! - 180 MNOK EARNINGS 34 %: 310 MNOK

  23. EXCLUSIVE COOPERATION AGREEMENTS & PARTNERS • * SKRETTING ASIA • * Nofitech AS, RAS design • - Kaldnes Brûgge, RAS installations/water filter • * Aqualine AS, lake & sea water installation. • - Billund Aquaservice AS – world leader RAS technology • - Aquasearch AS, Denmark – eggs for trout • * SalmoBreed AS, eggs for Atlantic salmon • - VEOLIA Ltd, China – water treatment and turn key solutions, pending • -NOFIMA AS, aquatic consultants (world class) • - AquaResearch AS, genetic consulting, owned by Nofina * signed agreements.

More Related