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StarKist and Dongwon invest $20 mil in Alaska seafood company

Dongwon Industries’ two subsidiaries including StarKist Co., have invested a combined $20 million to acquire a minority share of Silver Bay Seafoods LLC, which is a  a fishermen owned processing company headquartered in Sitka, Alaska.

 

The Korea Joong Ang Daily newspaper reports that Dongwon Food & Beverage will put up $8 million, while StarKist Co. will invest $12 million. 

 

The move reflects Dongwon’s efforts to overtake the canned salmon market leader, CJ CheilJedang in Korea, the newspaper reported this week Monday, which is when the deal between Dongwon and Silver Bay Seafoods was signed in South Korean capital of Seoul.

 

“Silver Bay has achieved high-end salmon processing skills and it operates four factories in Alaska,” Dongwon said in a statement. “Combined with Dongwon’s knowledge gained from tuna processing, the two companies will generate great synergy.”

 

Responding to Samoa News inquiries, StarKist spokesperson Michelle Faist said yesterday, “We don’t have any additional comments to share at this time.” Pittsburgh based StarKist operations include the StarKist Samoa plant in Satala.

 

Silver Bay said Monday that the cross-investment agreement with Dongwon’s two subsidiaries combined, will result in a 12.5% equity interest in the company. Both StarKist and Dongwon have substantial processing and canning facilities, global cold storage, and distribution networks as well as very successful branded products, it says.

 

“This is a highly strategic move for our company and will provide us the opportunity to continue to build the Alaska salmon brand in the market complimented by our unique ability to provide an unbroken chain of custody from our owners fishing vessels to the retail shelf,”  said a spokesperson for Silver Bay in a statement.

 

Silver Bay is a leading producer of frozen Alaska salmon with diverse processing platforms, efficient infrastructure, and growing procurement of salmon through fishermen ownership.