Manufacturing in Iceland

Known worldwide for their warmth, comfort and quality, Icelandic woollens and other wool products (including sweaters and other finished knitted goods, textiles, and yarns for handknitting and industrial uses) realized USD 13 million in export value in 1991. Major markets were Western Europe, USSR, USA, and Japan. Icelandic clothing manufacturers also export sportswear and protective seamen's clothing.

Exports of skins and hides were valued at USD 14 million in 1991, comprising tanned hides, sheepskins (shearlings) and fox and mink pelts. Main buyers were garment manufacturers in the UK, Finland, and Denmark.

Canned foods - led by canned seafood delicacies - were exported for USD 2.3 million in 1991, mainly to West Germany, France, and USA.

After long service to the needs of the domestic fleet and processing sector, manufacturers of equipment for the fisheries industry exported goods valued at USD 17 million in 1991. Products are under constant development in cooperation with home buyers - fishermen, processors and researchers - to meet their stringent standards, and have been recognized by foreign buyers as well, for the excellent combination of very high quality and competitive pricing.

Iceland's fisheries equipment is field tested in a working environment, which is probably as tough as anywhere in the world. Established markets among North Atlantic fisheries nations - USA, Canada, Greenland, the Faroe Islands, and Norway - are still expanding and newcomers are being added to the list from many different parts of the world. Foreign vessels are now allowed to land their catch in Iceland's harbours. This is expected to lead to increased activity in firms servicing the fishing industry.

The government provides various support programmes for manufacturing industries through its research institutions, technological policies, investment incentives, labour policies, public procurement policies and a special grant scheme for small industries, especially in rural areas. Industrial Development Associations in rural areas receive financial support from the government. Their main objective is to stimulate industrial activity in their respective areas. The main investment funds for manufacturing firms are the Industrial Loan Fund, the Industrial Development Fund and the Regional Development Fund. Icelandic firms also have access to several Nordic Funds.