Southern Capital puts up more mussel money

By Phil Boeyen, ShareChat Business News Editor

Friday 20th July 2001

Southern Capital has snapped up an opportunity to invest further in the seafood industry.

The company says it has taken an interest in 50% of a pilot mussel hatchery at Clifford Bay in Marlborough along with a number of other investors. The other 50% of the business is owned by fisheries company Sealord.

Southern Capital already has a 22% stake in Clifford Bay Marine Farms, which wants to develop around 460 hectares of mussel farm at Clifford Bay.

At the end of last year the Marlborough District Council recommended to the Minister of Conservation that the farm be given a coastal permit, but the decision was appealed.

However Southern Capital says it is confident the farm will go ahead, and that confidence has lead to the new investment.

"Our confidence in being awarded the Clifford Bay marine farming permits caused us to examine spat supply issues for the planned mussel farm," says investment director, Michael O'Connor.

"A favourable set of circumstances presented itself to invest in the spat hatchery, which is literally on our doorstep. It was a strategic opportunity that couldn't be turned down."

Mr O'Connor says although the hatchery is still at the pilot stage, results from several years of research are sufficiently promising to have confidence that the plant can be expanded to full commercial size.

"The dollar investment is relatively small but the strategic importance of this investment is immense," says Mr O'Connor.

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