Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


SeaDragon signs significant raw material supply contract

SeaDragon signs significant raw material supply contract
Agreement overcomes historical supply constraints

SEA: NZX and Media Release

10 March 2014

Australasia’s largest fish-oil refiner SeaDragon (NZX: SEA) announces a new raw material supply agreement has been signed that will underpin its Nelson-based squalene manufacturing operations, and enable the business to seek new market opportunities in the pharmaceutical and cosmetic sectors.

SeaDragon has entered into an unconditional agreement with Pescarias Cayon & Garcia LDA for the supply of shark livers and shark liver oil to be landed in August and October of this year and in January of 2015.

The shipments will deliver quantities more than sufficient to cover the squalene production SeaDragon has budgeted for in the 2014 calendar year and beyond. The prices SeaDragon will pay for the shipments are linked to the squalene content of the material and are internationally competitive.

The agreement, also envisages SeaDragon acquiring further raw material from Pescarias Cayon & Garcia in the future.

SeaDragon Chief Executive Ross Keeley said: “The agreement locks in raw material supply for the immediate future, overcoming the shortages that have historically constrained the growth of our squalene operations and limited sales activity into new sectors such as cosmetics and pharmaceuticals”.

“This agreement will ensure the success of the existing squalene business and will further strengthen our position as we prepare to expand our Omega-3 fish oil activities. Our existing shark liver refinery will now be able to be run at full capacity for at least the next 12 – 18 months.”

The high volume of squalene will also enable SeaDragon to launch an Alkoxyglycerol product onto the market. Alkoxyglyercols are found in the co-product when squalene is fractionated and removed from shark liver oil. There is a growing international market for these compounds, with a variety of proposed health benefits.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news