Seafood company says plants eyeing merger

TWO tuna processing companies in Lae are considering a merger because of the tough market conditions and low prices.
Majestic Seafood Corporation Limited general manager Napoleon Benitez said they were discussing a possible merger with Frabelle PNG Limited.
“We are studying how to be more viable and competitive including a possible merger with Frabelle and inviting investors,” Benitez said. “The nature of the tuna industry requires economies of scale to compete against other tuna producers around the world. By pooling resources and facilities with other companies or investors, we may be able to bring our cost down and stay competitive.”
He, however, denied a statement by the PNG Fishing Industry Association last week that the company had closed its doors and was putting its plant up on the market for US$45mil (K135mil).
Benitez said the company was still operating and processing booked orders from last year and early this year.
“Admittedly, there is a considerable slowing down of the business and the company is trying its best to get additional orders,” he said.
“However, current European Union market conditions are very competitive with low demand and very low prices.”
Meanwhile, Frabelle PNG Limited manager Daniel Noble confirmed that the company was studying a possible merger with Majestic Seafoods to boost capaciy.
Noble said his company had laid off some employees who would be recalled when market conditions improved.