Mayors in two municipalities fight hard for their shrimp factories

A rare political and business drama, with much at stake, is taking place in Greenland these weeks.

Two mayors and their municipal councils in North Greenland are fighting bravely these weeks to prevent the closure of two factories producing shrimp and fish. These factories are vital for the two cities they are located in and the municipalities.

The municipal councils of the Municipality of Qeqertalik and the Municipality of Avannaata, led by Mayor Simigaq Heilmann (D) and Lars Erik Gabrielsen (S), respectively, have taken to the barricades.

Both municipalities' political leaders are sending a clear appeal to the Government of Greenland and the Government of Greenland to find a political solution to avoid the closure of shrimp and fish factories in Ilulissat and Aasiaat, respectively.

Gabrielsen: - Poor operation in Aasiaat

- Stop political attempts to close the factory in Ilulissat.  

This is what the Mayor of Avannaata Municipality, Lars Erik Gabrielsen, Siumut, writes on the municipality's website Avannaata.gl.

And the Mayor also says:

- Poor operation of the factory in Aasiaat should not be saved by Ilulissat.

Lars Erik Gabrielsen's announcement to stop "political attempts to close Ilulissat" comes in the wake of the board of the shrimp and fish production company Polar Raajat having announced that the company's factory in Aasiaat is facing an acute threat of closure.

The owners of Polar Raajat are the privately owned fishing groups, Polar Seafood Greenland and Polar Seafood Denmark.

- If the factory is closed, it will cost 115 employees their jobs. So if a permanent political solution is not found, as there is no economy in operating with the limited raw material base that we have, we will close the factory permanently during the autumn of 2026.

This was stated by Polar Raajat's chairman Bent Salling on February 10 in Sermitsiaq.

A long-term solution, according to Polar Raajat, is that the self-governing Royal Greenland factory in Ilulissat closes for the purchase of shrimp, Polar believes.

Bent Salling: Polar and the municipality are pressing

After a meeting with the municipal council in the Municipality of Qeqertalik the week before, Bent Salling said, also on February 10, that the municipality, in line with Polar, is pressing (to the Government of Greenland, ed.) to find a solution to avoid the closure of the Aasiaat factory.

The mayor of the neighboring municipality, Lars Erik Gabrielsen, can understand this, but not at all if it means closure in Ilulissat:

- It is serious when 115 jobs in the Polar Seafood factory in Aasiaat are put at risk, as it appears.

- But it is even more serious when the privately owned Polar Seafood wants to turn its own structural and business challenges regarding an urgent closure of the factory into a political responsibility.

- And as can be seen from Sermitsiaq, it also points out that the solution should be to close a well-functioning community-owned factory in Ilulissat, writes Lars Erik Gabrielsen further.

The factory in Ilulissat is owned by Royal Greenland and is thus community-owned, the mayor points out.

- It is a well-run and efficient shrimp factory with a solid raw material base. The reason is simple. Ilulissat has been a fishing village for decades, where many local fishermen with smaller trawlers are domiciled.

- They supplie the factory stably with shrimp. Not because of political decisions, but because that is where the raw materials are naturally landed, he says.

He acknowledges that the fishermen also have the opportunity to purchase in Aasiaat.

- They do not. Not for political reasons, but because their boats, service, workshops and business networks are located in Ilulissat. It is the market that determines – not political wishes. If Royal Greenland were to close its shrimp factory in Ilulissat, the raw materials would not disappear. Local fishermen have already indicated that they would establish a new shrimp factory themselves.

- The result will be the same. The shrimp will continue to be landed in Ilulissat. Aasiaat will therefore continue to have difficulty attracting purchases, regardless of political intervention.

- To believe that the factory in Aasiaat can be made attractive by politically weakening Ilulissat is both naive and irresponsible, believes Lars Erik Gabrielsen.

Ilulissat factory has high earnings

He states that Royal Greenland's shrimp factory in Ilulissat is among the country's best-functioning and most profitable.

- It is well documented that Royal Greenland already has financial challenges. Closing a well-functioning and profitable factory will not improve the company's finances, it will worsen them. Ultimately, it will be bad for the economy.

If Polar Seafood wants to ensure the operation of Polar Raajat's factory in Aasiaat, the company should look inward, he suggests.

- For example, one could consider its own structural priorities including capacity in Nuuk instead of demanding that a socially owned company carry out well-functioning activities elsewhere.

- The debate should not be reduced to a conflict between cities. The fundamental question is this: should we politically weaken a socially owned, well-run and profitable factory to compensate for a private company's lack of adaptation?

- The answer should be clear, Lars Erik Gabrielsen himself answers.

He concludes:

- The raw materials decide. The market follows the raw materials. And political attempts to change this by closing the factory in Ilulissat are both wrong, short-term and harmful to the economy.

Qeqertalik: Families are losing their livelihood

Municipality of Qeleralik Mayor Simigaq Heilmann, the Democrats, has also taken to the barricades with a significant cry for help to politicians in the Greenlandic government and parliament to do something and act in the pressing situation for the municipality.

The background is, among other things, that Polar Raajat has announced the closure of the shrimp and fish factory in Aasiaat and the dismissal of 115 employees in the autumn of 2026, while the company is calling for a long-term political solution to preserve the factory.

She writes on the municipality's website Qeqertalik.gl (which we are also publishing as a debate piece in this newspaper, as it has been sent to the editorial office):

- I have previously emphasized that Inatsisartut and Naalakkersuisut must demonstrate the necessary political will and take overall responsibility for sustainable development throughout the country. It is now appropriate to ask the question directly:

- What future do we aspire to for the country's smaller settlements? The situation for the more peripherally located municipalities gives cause for serious concern, writes the mayor.

She points out, among other things, that the new fisheries law entails an additional risk of several families in Aasiaat losing their livelihood.

- The consequence may be that parents in the future will have to get up without a job to go to. This is a situation that will significantly burden the Municipality of Qeqertalik. In addition, the decision to prioritize an airport in Ittoqqortoormiit – despite well-known, serious challenges within the infrastructure in our own municipality – once again limits our opportunities for economic development.

She further writes that Aasiaat and the many self-sufficient families in the town are currently in an increasingly precarious situation that could have extensive consequences for the entire Municipality of Qeqertalik.

The mayor's message to the politicians in Naalakkersuisut and Inatsisartut, and Polar Raajat is:

- A national restructuring and modernization of the shrimp sector is necessary.

- In this period of considerable uncertainty in the Municipality of Qeqertalik, I hope that Inatsisartut and Naalakkersuisut will recognize the seriousness and meet the need for a joint and responsible political initiative, writes Simigaq Heilmann.

Sermitsiaq has tried in vain to get an interview with Mayor Simigaq Heilmann without her responding to our inquiries.