Hans J Marter

22 August, 2007

A REMOTE Shetland community has been dealt a severe blow after it emerged yesterday (Tuesday) that one of the area's largest employers is set to close.

Director Peter Duncan confirmed that his company Aquafarm would be forced to shut the Ronas fish factory, in Ronas Voe, next weekend unless new work can be found.

The factory, which employs 11 people, has fallen victim to the recent buy out of an organic salmon farm which supplied its fish.

The workforce was issued with redundancy notices at the beginning of the month, and unless a rescue package can be found they will be out of work next week.

Local councillors are already working with the factory's management to find seafood related work to replace its contract with Scalloway-based North Atlantic Sea Farms (NAS).

In June NAS, thought to be the largest organic salmon farm in the world, was sold by its owners John and Wilma Goodlad to Lerwick-based Hjaltland Seafarms for £3.8 million.

Norwegian-owned Hjaltand operates its own factory, Lerwick Fish Traders, at Gremista, where the NAS fish will now be processed.

The move reflects the consolidation of Shetland's salmon farming industry into the hands of fewer players, with Norwegian interests now owning more than 80 per cent of the fish farms.

Mr Duncan said last night he had no option but to close the plant when the company lost the contract to process salmon from NAS.

"Staff have been issued with notices, but we are still looking at all possibilities. If we managed to get new contracts, we would re-employ people, but we can't carry on if it is not viable. It is not very good for Northmavine," he said.

Last night Shetland North councillor Alastair Cooper vowed to do everything he could to find work for the factory.

"I am extremely disappointed at the fact that once again the future for the factory is uncertain, but I believe that there are still one or two options for keeping it going and hopefully return the workforce," Mr Cooper, a former council development manager, said.

"I am keen to work through as many options as we can during the next few weeks. I have been speaking to Peter Duncan about potential seafood alternatives."

After years of uncertainty as a whitefish factory, the Ronas complex found stability five years ago when it converted to processing salmon and later received organic status.

Dave Sandison, general manager of trades organisation Shetland Aquaculture, was not optimistic about the factory's future.

"Given the fact that it was extremely welcome a few years ago that the packing plant at Ronas Voe was opening again, this is really bad news and a big blow," Mr Sandison said.

"It is a sign of further consolidation in the farming industry and towards the packing stations in Scalloway and Lerwick.

"It means that there are now only a small number of fish farms that have very small amounts of fish that could be processed there, and I would believe that it's financially unviable to keep the plant going for that amount of fish."

Three years ago Northmavine received 'Initiative at the Edge' status in recognition of the fragility of its economic base. Margaret Roberts, of the Northmavine Development Company that steers the programme, said she would work closely with other agencies such as HIE Shetland and the local authority to look into alternative employment opportunities in the area.

Last month local people welcomed the news that the dormant St Magnus Bay Hotel, in Hillswick, had been purchased by Brae businesswoman Andrea Manson with plans to open it soon.

It is understood that some of the employees made redundant at the fish factory have been offered jobs at the hotel.