KAPP and Loðnuvinnslan sign Letter of Intent for new pelagic processing plant!

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Sales director and deputy CEO of kapp concluding a partnership with LVF at Seafood expo Global in Barcelona

KAPP and Loðnuvinnslan Sign LOI for New Pelagic Processing Facility in Iceland

KAPP and Loðnuvinnslan have made a significant advancement in the field of pelagic processing by signing a Letter of Intent at the Seafood Expo Global in Barcelona.

This agreement establishes a framework for entering into final negotiations to develop a state-of-the-art pelagic processing facility in Fáskrúðsfjörður, Iceland.

KAPP, a prominent provider of equipment and software solutions for the seafood industry, will deliver an integrated solution that encompasses grading, filleting, and chilling, along with comprehensive system design and installation.

A Trusted Partnership Moving Forward

Loðnuvinnslan currently operates a fishmeal plant, a freezing facility, and herring salting operations. The company owns three vessels: Ljósafell, a fresh fish trawler; Hoffell, a pelagic vessel; and Sandfell, a longliner.

Both parties have indicated that the design of the new processing solution is well advanced, with only final adjustments remaining. They expect to finalize formal agreements by the end of the month.

"We are grateful for the trust that Garðar and the Loðnuvinnslan team have placed in us by moving forward with these negotiations. Our two companies have maintained a strong working relationship over the years, and we look forward to continuing this collaboration," said Ólafur Karl Sigurðarson, Deputy CEO of KAPP and Managing Director of KAPP Skaginn.

"It's exciting that this solution will utilize the full range of technologies we offer from both KAPP and KAPP Skaginn, showcasing the strength of our combined product portfolio."

Proven Track Record of Collaboration

Garðar Sigvaldason, Managing Director of Loðnuvinnslan, emphasized the value of the partnership:

"It's truly satisfying to be moving towards an agreement with KAPP and KAPP Skaginn for further development in Fáskrúðsfjörður. Over the years, KAPP's team has consistently proven to be reliable partners, demonstrating their capabilities and earning our trust. Today, our revitalized company is competitive in a demanding market, backed by a team where every individual plays a key role."

KAPP's team at the signing included Heimir Halldórsson, Ólafur Karl Sigurðarson, and Garðar Svavarsson, and Þorri Magnússon from Loðnuvinnslan.

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KAPP brings expertise in refrigeration, slurry ice, onboard and onshore processing systems, automation and service — with a strong presence in Seattle and deep connection to the North American seafood industry.

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Attending Pacific Marine Expo? Contact us to schedule a meeting with KAPP and Sæplast Americas Inc. at booth #644.

Event details:
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Our focus is on helping seafood companies preserve quality, increase value and improve efficiency throughout the production process.

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Get in touch to book a meeting with KAPP Norway AS during Nor-Fishing.

Event details:
Nor-Fishing 2026
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KAPP Norway AS booth: A-104

Date:
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Visit KAPP to discuss solutions for chilling, freezing and processing — from onboard handling and rapid cooling to onshore processing, thawing, freezing, automation and service.

Our team will be available to talk about how the right temperature control, gentle product handling and reliable service can help seafood producers protect raw material quality, improve yield and run more efficient operations.

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Planning to attend IceFish? Contact us to schedule a meeting with the KAPP team.

Event details:
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September 22–24, 2026
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KAPP booth: B12

Date:
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Region:
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