Revamp part of a £1.3m initial investment, with a further £1.5m to be invested within two years
Work is underway to upgrade and develop Scottish Sea Farms fresh water hatchery at Holywood near Dumfries.
The £1.3 million overall investment includes rebuilding the fry production site, consolidating it into one area, as well as tank replacement and equipment upgrades.
The project will significantly upgrade the existing water supply and the new technology will ensure the water source is completely secure.
The fish hatchery and fish handling will be contained in new buildings on the 40-acre site.
Scottish Sea Farms said 94 per cent of the investment will be spent with Scottish and local based companies.
The upgraded facility is expected to be fully operational by the end of October 2012.
A second development phase, estimated at being a further £1.5 million investment, is expected to commence within the next two years.
Mike Bauermeister, fresh water manager at Scottish Sea Farms, said: “This major investment represents a key phase in our strategic development and it will secure and improve upon the excellent health, quality and performance of the production at this site and help to grow our fresh water facilities across the company, allowing us to expand in the future.
“This is the first phase of the development at Holywood, there will be a second phase to the project in the next two years with further investment planned of £1.5 million.
“The main benefits as a result of this modern facility will be a higher rate of health and survival for the newly hatched fish.
“There will be major cost savings due to greater efficiencies and it will ultimately reduce our reliance on traditional oil-based water heating on our other farms, giving significant environmental benefits.”