ICELAND
American specialists and a lot of Polish labour. aph
utik
gr
The output is mainly sold to European customers
.com/An
through Rotterdam. .com/Zuito
kphoto
‘We’re now looking into the feasibility kphoto iStoc
of building a second smelter in the north
iStoc
of Iceland,’ said Ms Indriðadóttir. ‘There’s a
memorandum of understanding between the
government, municipality and Alcoa. We’d be
using geothermal energy – the national power
company will build the plant.’
Meanwhile, the Italian aluminium foil
producer Becromal is setting up in the north,
having signed a deal with Landsvirkjun for
electricity supply. Its initial energy needs will
be an estimated 640 GW per annum – about
five times more electricity than the entire
Eyjafjordur region uses annually. Increasing
power consumption across Iceland will hasten
the need for a new power station before long.
The Akureyri region business agency spent Fishing – and now the processing of luxury fish-based food products – remains a vital part of the economy.
three years seeking an investor, and the town
is backing the plant by helping train employees offers passenger and cargo services to more than whether or not the country should join the EU.
through the Akureyri vocational college. This 20 destinations all year round. Several other ‘It remains to be seen whether that could be
kind of partnership is new to Iceland. airlines operate services for part of the year. Three negotiated,’ says Hilmarsson. ‘We have to be more
It produces power foil for capacitators, a Icelandic shipping lines run regular cargo schedules protective than the mainland in that respect and
specialised high technology process that does serving ports in North America, Scandinavia, the it’s the most difficult area of negotiation.
not release greenhouse gases, and will create UK, Europe and the Baltic, with efficient freight ‘But it may change within a few years – the
90 jobs. Icelandic company Strokkur Energy Ltd, forwarding systems. Iceland’s harbours are ice- minister of commerce has a committee looking
specialising in investments in renewables, has a free all year. at the limitations of FDI, and one of the main
40 per cent share in the company. A 1,400km ring road links virtually all the issues is whether we should open up the fishing
major towns. Regular flights operate from industry.’
TransporT and The Reykjavik Airport across the country, often Marine products account for around 34
aeroTropolis several times a day. Good natural harbours per cent of exports and 36 per cent of foreign
Iceland may look isolated on the map, but it’s well- are available in many parts of the country currency earnings. Amid stricter quotas,
connected by air and sea to Europe and North earmarked for industrial development. Iceland’s response has been to grow value-
America – a three-hour plane ride from major Meanwhile, Iceland is working on the added processing of seafood products, diversify
cities in Western Europe and 5-6 hours from the concept of an aerotropolis – a town built the catch, and adapt to market trends.
USA’s east coast. Icelandair, the national carrier, around an airport. Based on the model alongside While fishing operations are largely
Schiphol, Amsterdam, this is being planned confined to Icelandic citizens and companies,
around a former navy base at Keflavik. seafood canning is open to foreign investment.
.com/grybaz
‘It’s a greenfield area with lots of space and And processing can offer rich pickings: in
kphoto
renewable energy sources,’ says Hilmarsson. June, Alfesca, Iceland’s major fish processing
iStoc
‘It will be run by just one company, and we’re company, signed a deal with Qatari Sheikh
hoping it will be ready for marketing to direct Mohamed bin Khalifa Al-Thani who, following
investors by the end of the year. a new share issue, now owns 12.6 per cent of
‘The idea is to attract a cluster of different the company.
enterprises: anything – from fresh fish importers ‘Alfesca is publicly listed, which means that
to training centres to internet companies – anyone can buy our shares – we’ve always been
that would thrive from being near the airport. open to investment,’ said head of corporate
Top opporTuniTies
This project would be an economic engine for communications Hrefna Ingolfsdottir. ‘But this
Energy – geothermal or hydrogen
Iceland.’ is the first time we’ve had a significant foreign
Wide scope for specialist engineering investor.
Data storage
Fishing ‘It will allow us to borrow a significant
Internet companies
The so-called Cod War with the UK is a fading amount of money. We’ll have a very good
memory, but Iceland is still anxious to protect equity ratio – we not very indebted – and this
Seafood canning
its staple industry. And it clouds the debate over will give us space to expand our business.’
18 pAthfINDEr busINEss l JUNE/JULY 2009
PBS12 pp12-19 Iceland.indd 18 8/6/09 12:50:38
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