Ocean Choice of Newfoundland is the successful bidder for a number of assets formerly owned by Polar Foods International. Ocean Choice will buy processing plants in Souris and Beach Point and will open them this spring. The company will also buy:
- Morningstar Seafoods in Victoria;
- the processing plant in Arasaig, Nova Scotia;
- the property at Gaspereaux, which will be used for live holding and maintenance;
- the property at Morell, which will be used for a buying station and storage;
- the rights to the Polar name and trademark;
- various pieces of equipment and machinery.
The company will operate as Ocean Choice PEI. They will process lobster at the plants in Souris and at Beach Point. They will process all the lobster they buy in Prince Edward Island and in the Maritimes at their Island plants.
“We are delighted to be able to deal with a company that is committed to the lobster industry in this province,” said Premier Pat Binns. “Ches Penney and the entire staff at Ocean Choice have proven themselves to be excellent employers and fair business people. We welcome their presence in this province.”
The Ocean Choice bid, the receivables and the liquidation of assets will result in a total exposure to government being reduced from $51.5 million to what is anticipated to be less than $20 million.
Government is now looking at other opportunities for the remaining assets.
A prime motivation behind the sale to Ocean Choice was the desire to continue to have a sustainable, profitable lobster primary processing industry on Prince Edward Island. Ocean Choice will begin immediately to meet with fishermen to develop sources for lobster.
The company will operate with no assistance from government and Ocean Choice shareholders have personally guaranteed the money they will pay for the Polar assets.
“We are confident that the company will have the best interests of the Island lobster industry at heart,” said Premier Binns. “They have shown a willingness to employ Islanders and to buy lobster from Islanders. They have also pledged $10 million to upgrade the facilities they have purchased.”
“We are determined that no worker will be left behind as a result of the re-organization in the lobster industry,” said Premier Binns. “We will now work with the former employees to make sure both their needs, and the needs of the processing industry, will be met.”
The Premier also announced that he will fulfill a promise he made at the beginning of this process. The province’s Auditor General has been asked for a full and complete review of Polar Foods.
“I pledged that this process would be open and transparent and that is a pledge I intend to keep,” said Premier Binns.
Ocean Choice PEI will begin work immediately in anticipation of the opening of the spring lobster season.