Deep Sea Supply and Marine Harvest ASA to establish an aquaculture shipping joint venture

Deep Sea Supply and Marine Harvest ASA (Marine Harvest) have entered into a Heads of Agreement to establish a 50/50 owned aquaculture shipping joint venture (the "JV"). This venture involves building, owning and operating aquaculture vessels. 

The JV represents a unique opportunity for Deep Sea Supply to capitalize on the Company's experience from the OSV sector to enter into a new and attractive market together with an industry leading partner.




Marine Harvest and Deep Sea Supply believe there is significant room for efficiency improvements across the value chain in aquaculture shipping, ranging from reduction in newbuilding cost to more cost-efficient operations. Accordingly, Deep Sea Supply and Marine Harvest aims to significantly reduce costs related to vessel services through establishing the JV.


Over the past few years aquaculture vessels have increasingly become an integrated part of the value chain. Marine Harvest charters today 44 vessels with a combined cost of approximately EUR 100 million per year, making Marine Harvest the industry's largest charterer of such vessels. The JV expects to enter into contracts for the construction of aquaculture vessels which will be chartered by Marine Harvest upon delivery. Current discussions indicate a substantial reduction in newbuilding cost compared to solutions provided by alternative aquaculture providers. The JV entity will be Marine Harvest's preferred provider of aquaculture vessels. The intention of the JV is to also compete for external contracts. Deep Sea Supply will enter into management agreements with the JV covering all necessary management services, including technical management, ship management and other corporate services.




The aquaculture shipping industry is fragmented and characterised by lack of competition. Through the JV, Deep Sea Supply and Marine Harvest aim to consolidate the industry to achieve economies of scale. The JV will explore any opportunity that may improve building cost or operating cost, including taking advantage of the current imbalance in the offshore service vessel market through potentially convert surplus offshore vessels into aquaculture vessels if project economics are favourable.


Deep Sea Supply sees the establishment of the JV together with Marine Harvest as an attractive opportunity for the Company to expand its business into a related industry where we can benefit from long term charters at attractive rates. The JV also allows the Company to further capitalize on our strong operational platform through management of the JV's vessels. Deep Sea Supply will establish a new 100% owned subsidiary to be the 50% owner of the JV and will seek to finance the JV-investment on a stand-alone basis directly through this subsidiary. With back-end loaded payment terms on the newbuilds, no material upfront investment is expected.  The Company's largest shareholder, Hemen Holding Limited, currently owning approximately 35% of the shares in the Company, has indicated support for the establishment of the JV.  

Associated companies:

Related news

Latest news

Great interest in smart options

An increasing number of people become aware of how smart options can make the construction process more efficient and life for residents easier, says product manager NorDan Smart, Olav Hjørungnes.

Salmon Wellboat Sails Electric

The new MS SEIHAV has now gone on chart with the Norwegian salmon farming company Lerøy Seafood Group. A reliable and environmentally sustainable propulsion arrangement has been chosen for MS SEIHAV.

Servogear at Interferry 2016

It is almost time for the 41th annual Interferry Conference. From October 15-19, Servogear will be present in Manila.

Strainstall mooring monitoring for Hywind

Strainstall provides specialised mooring monitoring for pioneering floating offshore wind farm project, Hywind. Collaboration with MacGregor delivers fully integrated mooring solution to monitor the forces on the floating ...

NSM Signs contract with Embraer

Norwegian Special Mission signed a contract with Embraer to supply six (6) UNIFIS 3000 Navaids Flight Inspection Systems to be integrated into six Embraer Legacy 500 aircraft.

Designing the energy solutions for autonomous airships

The Stratobus project is a new concept for an autonomous airship, operating at an altitude of about 20 kilometers. It is led by Thales Alenia Space (TAS). CMR Prototech has been chosen by Thales Alenia Space to s...

Expanded collaboration with DNV GL - Business Assurance

Steinsvik and DNV GL - Business Assurance have signed a framework agreement on product certification of barges for aquaculture.

"Maud" Returns Home

CMR had two men working on the research ship "Maud", Harald Ulrik Sverdrup and Odd Dahl. Both helped Roald Amundsen to get his project through and this highly scientific expedition could be realized. Sverdrup was scientifi...

The impact of NORCOWE

"NORCOWE has been instrumental for StormGeo’s positioning in the [offshore wind] market, " StormGeo’s vice president Renewables Jostein Mælan declared at NORCOWE 2016.