October 30, 2024

By Gerelyn Terzo, Global AgInvesting Media

Tokyo-based Mitsubishi Corp is betting on the ocean economy. Through its investment arm, Mitsubishi is backing Finnish aquaculture technology company Finnforel to catapult the expansion of land-based fish farming projects. Mitsubishi’s investment is part of a wider €240 million (US$260.5 million) funding round for Finnforel, GAI News has learned. However, the companies are keeping the size of the investment close to the vest.

Finnforel Group Co-Founder and CEO Pekka A. Viljakainen told GAI News, “The investment is part of a larger financial round aimed at supporting Finnforel’s growth plans. Despite the specifics remaining confidential, it is a significant contribution that will play a key role in our future expansion and reflects Mitsubishi’s role in driving our expansion. The financial round totals €240 million and includes contributions from additional investors.”

Finnforel, which was founded in 2015, will direct the proceeds to secure an efficient and sustainable way to produce fish local while also strengthening food security. A cornerstone of the company’s strategy is its gigafactory concept, which combines eco-friendly fish farming and processing under a single roof, resulting in efficient and sustainable industrial-scale production.

Mitsubishi’s allocation will allow Finnforel to develop rainbow trout farming, a suitable cold-water fish species for Recirculating Aquaculture Systems (RAS). These production systems harness advanced biofiltration to support control of essential environmental factors while ensuring stable, safe and clean indoor conditions. They recirculate and reuse water within a closed system, resulting in zero biowaste and minimum wastewater. Additionally, recirculating aquaculture systems allow for year-round fish production regardless of weather conditions.

In 2021, Finnforel invested €45 million (US$48.8 million) in new production facilities and built Finland’s maiden selective breeding center for rainbow trout. These investments comprised a €34 million (US$36.9 million) share issue, €4.5 million (US$4.8 million) from the European Maritime and Fisheries Fund (EMFF) and €6 million (US$6.5 million) in bank debt, the company explained. The share issue drew big Finnish and international institutional investors who the company welcomed as shareholders, including family investment office Ahlström Invest, Finnish Industry Investment (Tesi), the European Fund for Strategic Investment (EFSI), The Good Investors (Ireland/France) and other European family enterprises.

Mitsubishi Corp is no stranger to fish farming and acquired salmon farming giant Cermaq in 2014. Now a wholly owned subsidiary of the conglomerate, Cermaq produces approximately 200,000 metric tons of salmon per year across Norway, Chile and Canada.

Mitsubishi Corp Marine Products Division COO Akihiko Soga, who also previously sat on the Cermaq board, stated, “We are pleased to join Finnforel’s journey through this investment. We deeply empathize with Finnforel’s vision to develop sustainable protein supply through their gigafactory concept, in which they handle feed manufacturing, farming, processing and product branding integrally. MC will continue to strengthen our farming business and contribute to sustainable supply of food resources and addressing societal needs.“

Finnforel’s Viljakainen said, “Finnforel’s mission is to save the seas and feed the planet. This huge mission requires strategic partners and shareholders, with whom we can deploy our technological and operational knowledge to all continents…We are very proud to have Mitsubishi, with its global distribution channels, talent and resources to support our Finnforel’s journey.”

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