GASPÉ – The Marinard shrimp processing plant in Rivière-au-Renard has been purchased by a numbered company formed by Bill and George Sheehan, of Sainte-Thérèse-de-Gaspé. They are notably known as shareholders of the firm E. Gagnon et Fils with their father Raymond, who presides over the latter.
The information that had been circulating in the industry for several weeks was transmitted to SPEC on October 30 and confirmed on October 31 in a press release.
“There are still assets and facilities that correspond to our needs. We can talk about the cold room, the laboratories. With the plant, it’s certain that it will be a big challenge with the shrimp crisis, but we’re going to try to meet it,” says Bill Sheehan, Vice-President of E. Gagnon et fils.
The Sheehans are making a bold decision considering the confirmed shrimp crisis.
“A little, yes. Audacious, that’s the right word. Certainly, in the short term, we have storage needs. The warehouse made a big difference in the decision. We also have to think about the employees. If we think of the Gagnon plant, we have more than a hundred foreign workers. We are facing a labour shortage. The 140 employees at Marinard are resources that ensured that the transaction was possible on our side. The 140 people in the current (labour shortage) situation, I think it (the acquisition) is good positioning,” continues Mr. Sheehan.
“We intend to continue with shrimp but we will see what will happen in the coming weeks,” says Mr. Sheehan.
The goal was to restart operations on November 6. They were suspended on September 1 due to a shortage of shrimp to process.
“We will have shrimp coming from outside to conduct tests, and then there will be repackaging. We will do everything in our capacity to allow employees to complete their weeks. This is our priority,” says the vice president..
As shrimp is becoming increasingly scarce and with a possible return of redfish fishery, the plant could be adapted.
“We are always on the lookout for new species. My father got into salted-dried cod. We moved on to lobster, crab, and shrimp. Plants in Gaspésie have always adapted. If the opportunity presents itself, at Marinard, we have the location. The plant has already processed many of them (species). There’s a lot of refrigeration, cooking, flour mills. There’s a lot of possibilities. If the opportunity presents itself and it can be profitable, we will be there,” says Mr. Sheehan
The plant currently has a shrimp processing permit only.
The laboratory’s research activities will be maintained.
The value of the transaction between E. Gagnon et Fils, based in Sainte-Thérèse-de-Gaspé, and Daley Seafoods of Newfoundland and Labrador, which announced the acquisition of the company on December 20, 2021, has not been disclosed.
E. Gagnon will take over the cold storage. A new company will be created to oversee Marinard Biotech, IT (technology branch), the fish market, and the processing plant.
“We are quite proud to repatriate a plant owned by Quebecers and even better Gaspesians,” says Mr. Sheehan humbly.
E. Gagnon is always open to opportunities that may arise.
“But we will still have good challenges to face with this plant which still has good potential,” concludes Mr. Sheehan.
Positive reactions
The political community, the shrimp industry and the workers are all optimistic about the news.
“We understand the intention of the new owners, who are people from the region, is first to secure the employees and ensure they qualify for employment insurance so that they can get through the winter,” says the mayor of Gaspé, Daniel Côté.
Mr. Côté notes that the new owners will be able to better control what happens in the fishing sector and bring the “luster” back to the plant.
“We want to look at other possible solutions to use all of the plant’s facilities. They didn’t buy it for nothing. They are savvy business people. I look forward to hearing about their plans,” the mayor continues.
In the context where shrimp is experiencing a sharp decline, Mr. Côté breathes a sigh of relief. “I have high hopes for the future,” adds the elected official.
The Quebec government was aware of the discussions between the parties and of E. Gagnon and fils’ intentions, however, the provincial government was not called upon to intervene in the matter.
“We’re very happy with the outcome. We understand that this was a priority issue for the riding,” says Gaspé Member of the National Assembly, Stéphane Sainte-Croix.
“We’re proud of the company’s return to Quebec and, more specifically, to the Gaspé region, and for our employees, we’re helping to secure their situation in the short term,” continues Mr. Sainte-Croix. “We didn’t want to lose this asset in the fisheries,” he adds.
The buyer mainly processes lobster and crab, and the purchased plant processes shrimp. If E. Gagnon et fils requested new permits to make the plant profitable, the Quebec Government would be open to assisting.
“We will have to evaluate the ins and outs of all that. We will have to let the committee do its work and make the necessary recommendations. These are discussions which, I imagine, will take place over the coming weeks,” explains the MNA.
The Quebec Shrimp Fishermen’s Office is delighted for the plant’s workers who will be able to qualify for employment insurance.
“We will see what the new owner will do in the shrimp sector which will change over the coming days. It will be interesting to see how the new owner positions himself in the context where the resource will be limited next year,” reacts the director of the Quebec Shrimp Fishermen’s Office, Patrice Element.
“This is very good news, and I think everyone will be happy,” says Luce Jean, the president of the union representing the plant workers affiliated with the CSN.
“I think it should go well over the next year. I hope that the new owners will meet us soon to discuss where we are going and to find out if we are going to work this winter,” continues Ms. Jean.