Cooke Scotland is delivering a £22m programme to install a new recirculating aquaculture system (RAS) at its hatchery in Cairndow on Loch Fyne.

The company has secured £1.9m from Highlands and Islands Enterprise (HIE) for the next phase, on top of £567,000 awarded by the Scottish Government's Marine Fund Scotland last year.

The RAS will recirculate, filter and condition water to optimise growth, survival and resilience, giving the business tighter control in the earliest life stages and bolstering defences against pathogens.

These improvements are expected to lift survival rates at the site and after smolts are moved to marine farms for on-growing.

Once complete, the hatchery will be able to produce three to four million smolts a year at up to 100 grams, significantly increasing productivity without any rise in water use or discharge. Bespoke equipment for fish transfer and vaccination will also enhance fish welfare.

The public funding package was announced on 16 June at the Aquaculture UK event by Minister for Agriculture, Marine and The Islands Jim Fairlie. He said: "I'm delighted that Cooke Aquaculture has chosen to make this significant investment in their Scottish operations. As an international company with competing investment options across the world, it's great news that Scotland has secured this at scale.

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"Investment in recirculating aquaculture systems is central to the future of the sector here in Scotland. This technology gives producers greater control over early fish development, improving survival rates and productivity while reducing environmental impact.

"The Scottish Government's Marine Fund Scotland grant, combined with Highlands and Islands Enterprise investment, has helped unlock Cooke's commitment to Scotland – and I look forward to seeing this project deliver for the Argyll economy and the wider sector for years to come."

HIE area manager for Argyll and the Islands, Morag Goodfellow, said: "Aquaculture is hugely important to the Argyll economy. It's a high growth industry and one that provides many good quality rural employment opportunities, particularly for young people. This in turn helps to attract and retain talent and sustain community resilience in many areas.

"This latest inward investment from Cooke Scotland will strengthen the sector's impact and create jobs. I'm delighted we've been able to support the project and look forward to continuing to work with the company as the development progresses."

Founded in New Brunswick, Canada, in 1985, Cooke is now the world's largest privately owned seafood company. After acquiring Meridian Salmon Farms, it employs more than 380 people in Scotland, mainly across Shetland, Orkney, Highland and Argyll.

Managing director at Cooke Scotland Colin Blair said: "We are very grateful to Highlands and Islands Enterprise and Scottish Government for the investment in this transformative project for our salmon production in the United Kingdom.

"It is a major step forward for our freshwater operations to increase the supply of more robust, healthier smolts for our sites for years to come with lower environmental impact. This development aligns with our commitment to fish welfare as well as growing the business responsibly and sustainability."