Camanchaca plant. (Photo: Camanchaca)

Camanchaca forced to close Iquique plant

Empresa Portuaria Iquique (EPI) rejected the request made by Compañia Pesquera Camanchaca to extend the concession contract for further five more years so the latter will have to leave the port facility within 18 months.

This implies that, by October 2016, Camanchaca will have to close its fishmeal and fish oil processing plant in the northern zone and leave the place that it has used for 50 years.

The company informed the Superintendency of Securities and Insurance (SVS) that the plant closure will lead to the dismissal of 420 workers in addition to the termination of service of at least 20 contractors, employing about 280 workers. Besides, about 450 suppliers from different specialties who have worked for the company would be affected.

As stated in the letter that the company submitted last June to the SVS, it was accepted that it could continue its operations in the port until 14 February, 2014.

It has also been stipulated that the concession period would be renewed for periods of one year but in December 2014, EPI declared the tender exploitation process as void, La Estrella de Iquique reported.

Last March, Camanchaca presented a study on fishing and industrial activity compatibility in all stages that could see the reconstruction of the breakwater and requested the extension of concession for five years.

But in a letter issued on 7 April, 2015, the EPI notified Camanchaca about its intention to terminate the concession contract.

In this regard, the general manager of the company, Ricardo Garcia, said "it was informed by Camanchaca through the essential facts to the market in due course."

"We have not reported anything else, so today there is no solution but we are working and doing whatever it takes so that finally this communication we received from EPI does not result in the closure of Camanchaca in Iquique," added the executive.

Regarding the 18-month period, Garcia explained that it would be insufficient because the move to a new place would involve a number of procedures that would exceed this time.

For his part, Camanchaca President Jorge Fernandez said the company is holding talks and written communication with EPI.

The mentioned options "will contemplate relocation alternatives that aim to combine our operation with the development and exploitation of that port in a stable and permanent, each with their respective implementation terms," he said.

Camanchaca reported to the SVS that the book value of the plant to be closed was USD 10.4 million up to 31 March, 2015, and represents 1.6 per cent of total assets. In addition, it stressed that in the four years between 2011 and 2014, Pesca Norte Division of Camanchaca generated revenue of USD 282 million, with an annual average of USD 70.5 million and a gross margin of contribution accumulated amounting to USD 52 million with an annual average of USD 13 million.

Related article:

- Iquique port operator ends concession granted to Camanchaca

By Analia Murias
[email protected]
www.seafood.media
 

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