Hjaltland Seafarms has further expanded its Scottish operation with the purchase of Shetland salmon farming business Collarfirth Salmon.

The acquisition last week adds three more salmon farm licences to Hjaltland's existing portfolio on the island and will boost the company's salmon production capacity by 2,100 tonnes per year.

Although the purchase will not immediately increase Hjaltland's 2008 harvest, expected to be 16,000 tonnes, the additional licences will help the company to achieve its aim of 21,000 tonnes by 2011.

Hjaltland, a wholly owned subsidiary of Norwegian giant Grieg Seafood Hjaltland, bought out part of the failed No Catch business in April.

The purchase was welcomed by the Shetland salmon farming industry. "This is another good sign that these stronger companies are willing to invest here in the future," said David Sandison, general manager of industry association Shetland Aquaculture.