Aker BioMarine is implementing measures that will enable the company to deliver own volumes of krill oil produced on board the company’s modern factory trawlers, as early as in 2009. The company is also strengthening its financial clout.

Aker BioMarine will acquire the modern factory trawler Atlantic Navigator and convert it for krill harvesting in Antarctic waters.

“This measure enables Aker BioMarine to begin commercial production of its own krill oil more quickly than previously projected. Investments will be less than half the cost of a new krill vessel, and the risk is lower,” says Aker BioMarine’s President and CEO Helge Midttun.

By going into commercial production with the Atlantic Navigator, Aker BioMarine gains valuable know-how with its unique on-board production systems before a decision is made concerning the building of a new Antarctic-waters krill vessel to replace Saga Sea.

Plans are for the Atlantic Navigator to be operational and begin krill harvesting and processing in 2009. Thus, Aker BioMarine will achieve production of approximately 500 metric tons of own-produced krill oil one year ahead of the schedule established as part of the successful NOK 1.2 billion share issue in December 2006.

Total investments will be on the order of NOK 500 million. This amount includes the costs of rebuilding the Atlantic Navigator and installing a modern extraction factory. Surimi production in Faeroe Islands fisheries, operated through Aker BioMarine’s partially owned company p/f Næraberg on the Faeroe Islands, will thus be terminated. That company will be continued; optimal use of its licenses will be determined in the coming months.

“These measures enhance Aker BioMarine’s financial clout in building a marine biotechnology company, specializing in deliveries of high-value marine ingredients through an optimized value chain, from harvesting to customers,” says Mr. Midttun.

From harvesting to customer
Aker BioMarine develops, produces, and markets Omega 3-based products derived from krill. Using the company’s Eco-Harvest continuous harvesting technology, krill is brought on board alive. Harvesting krill using traditional trawling techniques kills the krill, resulting in the destruction of the nutritious biomass. Processing begins immediately on board the krill vessel Saga Sea. As of the 2009 season, production will be expanded using the Atlantic Navigator.

Through the upcoming merger of Aker BioMarine with Natural ASA, the company will obtain vital expertise and experience on the development of patent-protected solutions for commercialization of high-value oils and health-promoting products based on lipids (fatty acids), such as Omega 3. Cooperation agreements have been signed with the pharmaceuticals company Pronova Biocare and the supplier of high-quality fish oils GC Rieber Oils; the agreements will provide commercial entry into key growth markets.

Aker BioMarine and Pronova Biocare recently signed a letter of intent to establish a research and development company for pharmaceutical products made from krill. This marks the start of Aker BioMarine’s targeting of pharmaceuticals. The goal is to establish the pharmaceuticals company this spring. Aker BioMarine and Pronova Biocare will each own 50 percent of the shares of the new company. Investments in research and development will also be split between the two owners.

“Aker BioMarine is thus well positioned for the future,” says Midttun.

Markets in growth
Markets for Omega 3 products are growing strongly worldwide, both as a pharmaceutical and dietary supplement. In the fourth quarter of 2006, Aker BioMarine and the high-quality fish oils producer GC Rieber Oils established the joint venture company O3C Nutraceuticals. The company’s business mission is to develop, patent-protect its intellectual property rights, produce, and sell Omega 3 concentrates in the markets for pharmaceuticals, dietary supplements, and food ingredients.

“We see major opportunities through joint ownership with Pronova Biocare for development of pharmaceutical products from krill, and with GC Rieber Oils for production of Omega 3 concentrates. Aker BioMarine will continue to be developed as a leader in the production of valuable, bioactive marine additives and ingredients for the aquaculture, food, dietary supplement, and pharmaceuticals industries,” says Midttun.


For further information, please contact:
Helge Midttun, President and CEO, Aker BioMarine, tel: +47 913 35 790