HIE is backing major expansion plans by a leading Shetland aquaculture business with a funding package worth more than £300,000.

The support from HIE will enable Hjaltland Hatcheries Ltd (HHL), a subsidiary of Grieg Seafood Hjaltland UK Ltd, to develop a state of the art Atlantic salmon smolt hatchery facility at Girlsta, Shetland where seven jobs will be created. The site is being refurbished and extensively upgraded with the first production of smolts expected in 2013. The project will result in improved traceability, quality control and stability in smolt supply to meet increasing customer requirements.

The new hatchery will produce around three million smolts each year by 2015, which will help meet half of Hjaltland Seafarms' demand and allow Grieg Seafood Hjaltland UK Ltd to create a sustainable and secure future for its farms, processing, sales and marketing operations.

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The European Fisheries Fund and the Shetland Islands Council are also providing grant support towards the £3.7 million project.

Since 2004, the Hjaltland group has invested £27 million in developing its Shetland based factory and farms which employ around 190 people. Managing director of Grieg Seafood Hjaltland, Michael Stark, said: "We very much appreciate HIE's support towards this project. Introducing the hatchery to our existing business is an important development, strengthening our operation, creating new jobs and securing the existing jobs for the future.

"This approval of funding provides the final link in the chain to complete our business from inception to finished product on retail shelves. The introduction of the hatchery helps us control supply of smolt and maintain the quality of our product, and of course, grow customer confidence. We are proud to be in a position to retail our own brand Shetland salmon and believe that customer response and accolades won by the Wild Waters range demonstrate it's creating a real impact, not only for the company but for Shetland as a whole."

HIE's Area Manager in Shetland, Stuart Robertson, said: "The Hjaltland Group makes an invaluable contribution to employment in Shetland and we are looking forward to continuing to work with the company to grow their UK and international business."

(GK)