Seafood firm’s £30m investment to lead to ‘significant’ packaging cost savings

WORK is underway on a new £30 million project in Peterhead which will lead to ‘significant’ savings in packaging costs for Denholm Seafoods.

The investment, which the firm said is ‘one of the largest ever taken’ in Scotland by a wild-caught fish processing company, will deliver a fish handling and storage system and the build of a new 12,000 square metre cold store.

Denholm Seafood’s existing processing facility will be upgraded, with it including the introduction of a ‘sophisticated’ and highly automated turnkey fish processing system designed and supplied by Skaginn 3x.

The firm said the refurbishment, which is due to be completed by summer 2024, will result in ‘significant’ savings in packaging and energy costs, as well as enabling greater volumes of fish to be handled.

It added that the provision of a new low pressure pump system to offload mackerel, herring, and blue whiting catches from boats on the quayside will deliver fish quality benefits, which will be ‘further enhanced’ by a new non-pressure plate freezing system that freezes the end-product much quicker than before.

The facility’s ‘intelligent’ process is designed to take about six hours from the time the raw material enters the factory through to final storage of the end frozen product. Denholm Seafoods added that the project upgrade will deliver energy savings in the region of 30 to 40%, contributing towards Scotland’s net zero targets.

Richard Duthie, MD of Denholm Seafoods, said, “We are tremendously excited by this new investment, which will deliver benefits to Scotland’s important pelagic sector, and provide us with a platform for new growth.

“With soaring energy costs and the need to increase efficiency, product quality and automation, this project will ensure we remain competitive in a global marketplace and enable us to develop markets in key areas such as the Far East. It will, for example, enable us to explore new opportunities in value-added processing by providing increased flexibility in meeting customer requirements.

“Research has shown that Scottish mackerel production already has a much lower carbon footprint compared to most other types of protein production, and this new facility will enhance that green reputation even further.”

The project was supported by £2.8 million of funding under Defra’s £100 million UK Seafood fund and £1.2 million from the Scottish Government through the Marine Fund Scotland.