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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news