Sealord expands global network

By LIBBY MIDDLEBROOK

New Zealand's largest fishing company, Sealord, has expanded its global fisheries network after investing millions in a new Argentine deep-sea fishing company.

Sealord, based in Nelson, has signed a joint-venture agreement with Argentine fishing company Pesel to take advantage of the country's underdeveloped hoki fishery.

Sealord chief executive Phil Lough said the two companies had set up a deep-sea fishing entity called Yuken with around 150 staff and four vessels.

The deal is understood to have cost Sealord $15 million.

Mr Lough said Pesel was an ideal partner as the company had been active in the local fishery for decades and could provide staff, vessels and five fishing licences for the new venture.

Pesel also wanted to take advantage of Sealord's catching, handling and processing techniques for deep-sea fish such as hoki.

"It's [Argentina's] the missing pieces of the jigsaw in terms of our global business," said Mr Lough.

"It's just a logical move, it's so much our core business."

Sealord, which holds about 23 per cent of the New Zealand fishing quota, also holds quota in Australia, Namibia and Chile.

Mr Lough said Sealord was encouraged to invest in the Argentine fishing industry following a move by the Government to sustainably manage its hoki fishery under a quota system.

The country's hake industry was recently crippled by a reduction in the total allowable catch because of unsustainable commercial fishing.

Sealord staff will be moved to Argentina to train local staff while Pesel and Sealord will jointly manage the marketing of Yuken's production.

Sealord is jointly owned by the Waitangi Fisheries Commission and Brierley Investments. Brierley is trying to sell its 50 per cent stake, although the Government has rejected all overseas bids for Brierley's holding.