Fishing vessel belonging to Orizon. (Photo: Orizon)

Low horse mackerel catches force Igemar to close two plants

The firm Pesquera Iquique-Guayane (Igemar) reported to the Superintendency of Securities and Insurance (SVS) the closure of two plants. It explained that it had taken this measure as a result of the low horse mackerel catch levels that have been registered for 36 months or so.

One of the plants, located in Coquimbo (Region IV), is engaged in the production of canned and frozen products for human consumption, and the other one, situated in Talcahuano (Region VIII) produces fishmeal and fish oil.

Igemar also reported that its affiliate Orizon had to perform "a provision for impairment, lowering the book value related to these assets to the amount of USD 34.8 million and generating a net loss after tax of USD 28,4 million in its financial results," Pulso reported.

This implies that Pesquera Iquique-Guanaye must recognize a net loss of USD 14.2 million after taxes.

This effect is reflected in the financial statements of the company up to June, 2013.

According to Eduardo Navarro Beltran, general manager of the company, the above explained situation is due to "the significant reduction in catches and quotas of horse mackerel, the main fishing resource on which Orizon bases its activity."

In the document signed by the executive it was also specified "that the capture of the resource has proved to be in its historical minimum levels for three years, forcing the significant sub-use of the production facilities of the company related to the species and negatively impacting the financial status of the partnership."

Related article:

- Pesquera Coloso to sell 20pc of Orizon

By Analia Murias
[email protected]
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