KAPP and Loðnuvinnslan sign Letter of Intent for new pelagic processing plant!

KAPP's team at the signing included Heimir Halldórsson, Ólafur Karl Sigurðarson, and Garðar Svavarsson, and Þorri Magnússon from Loðnuvinnslan.

Barcelona, May 7, 2025

KAPP and Loðnuvinnslan have made a significant advancement in the field of pelagic processing by signing a Letter of Intent at the Seafood Expo Global in Barcelona.

This agreement establishes a framework for entering into final negotiations to develop a state-of-the-art pelagic processing facility in Fáskrúðsfjörður, Iceland.

KAPP, a prominent provider of equipment and software solutions for the seafood industry, will deliver an integrated solution that encompasses grading, filleting, and chilling, along with comprehensive system design and installation.

A Trusted Partnership Moving Forward
Loðnuvinnslan currently operates a fishmeal plant, a freezing facility, and herring salting operations. The company owns three vessels: Ljósafell, a fresh fish trawler; Hoffell, a pelagic vessel; and Sandfell, a longliner.

Both parties have indicated that the design of the new processing solution is well advanced, with only final adjustments remaining. They expect to finalize formal agreements by the end of the month.

"We are grateful for the trust that Garðar and the Loðnuvinnslan team have placed in us by moving forward with these negotiations. Our two companies have maintained a strong working relationship over the years, and we look forward to continuing this collaboration," said Ólafur Karl Sigurðarson, Deputy CEO of KAPP and Managing Director of KAPP Skaginn.

"It's exciting that this solution will utilize the full range of technologies we offer from both KAPP and KAPP Skaginn, showcasing the strength of our combined product portfolio."

Proven Track Record of Collaboration

Garðar Sigvaldason, Managing Director of Loðnuvinnslan, emphasized the value of the partnership:

"It's truly satisfying to be moving towards an agreement with KAPP and KAPP Skaginn for further development in Fáskrúðsfjörður. Over the years, KAPP's team has consistently proven to be reliable partners, demonstrating their capabilities and earning our trust. Today, our revitalized company is competitive in a demanding market, backed by a team where every individual plays a key role."

KAPP's team at the signing included Heimir Halldórsson, Ólafur Karl Sigurðarson, and Garðar Svavarsson, and Þorri Magnússon from Loðnuvinnslan.

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