Icelandic fishing giant Síldarvinnslan cuts two ageing trawlers and 40 jobs, citing rising costs and contracting catch quotas
Síldarvinnslan Initiates Major Restructuring
Síldarvinnslan in Neskaupstaður, Iceland, has announced a significant restructuring of its fleet, which will involve decommissioning two vessels belonging to the group.
The decision is a direct response to a contraction of fishing quotas, rising operating costs, and changes in the overall operating environment for seafood companies. The action is an essential step in reorganising the group’s operations to maintain long-term competitiveness.
Two Ageing Trawlers Retired and Forty Jobs Cut
The company has ceased the operation of two wetfish trawlers: Gullver NS 12 and Jóhanna Gísladóttir GK 357, the latter of which was operated by Vísi ehf. in Grindavík.
The vessels are 42 and 27 years old, respectively, having been built in 1983 and 1998. The decommissioning involves the redundancy of two full crews, affecting 40 fishermen.
Síldarvinnslan stated that the fishermen are entitled to a six-month notice period, and both vessels will continue to operate during that time.
Consolidation Around Newer Vessel Birtingur NK
Síldarvinnslan plans to mitigate the impact of the redundancies by offering positions to some of the affected personnel on the wetfish trawler Birtingur NK and other vessels within the group. Síldarvinnslan acquired Birtingur NK at the end of 2024.
Birtingur NK will subsequently be crewed by a double crew to maximise efficiency. After the restructuring, the Síldarvinnslan group will operate three pelagic vessels and three wetfish trawlers, along with two longliners, a freezer trawler, and a small boat operating under the hook-and-line quota system.
CEO Cites Necessity for Future Competitiveness
Gunnþór Ingvason, CEO of Síldarvinnslan hf., confirmed the necessity of the difficult decisions:
“Decisions that call for redundancies are always complex and difficult, but Síldarvinnslan is making every effort to mitigate the effects of the measures as much as possible.”
He emphasised the necessity of the action: “They are, however, necessary to secure and maintain the company’s competitiveness and operations for the future.”
Mr. Ingvason specifically highlighted the changing business environment, including the “outlook for a further contraction of quotas” and the decision to retire “vessels that are advanced in years.”
