ÍSFÉLAG HF

Ísfélag hf. Fish Focus’ latest feature follows our trip to the Icelandic archipelago, Vestmannaeyjar.

It was our last day in the Westman Islands. We left our hotel after another delicious Icelandic breakfast and set off for the fishing company, Ísfélagið, where we met Guðmundur Jóhann Árnason, Ísfélagið’s HR, Environment and Sustainability manager.

Guðmundur Jóhann Árnason

Guðmundur, who was just back from a trip to the UK to see Coldplay (avoiding the cameras at the concert), gave us a history of the company and took us on a tour of the processing facility with Frosti and production manager, Björn Brimar Hákonarson who explained the process from catching to freezing. This was after Björn showed us his recently planted flowers at the entrance to the factory, which he said were superior to the landscaping at other facilities in Heimaey.

We were both impressed and amazed at the scale of the processing plant and the  cutting-edge technology used in the facility. Frosti was delighted to meet one of his ex-students and was eyeing-up the potential of translating some of the processing technology to his teaching at FabLab.

About Ísfélag hf

Ísfélag hf. is one of Iceland’s oldest and most established fishing and seafood processing companies. Founded on 1 December 1901, it is the oldest operating limited-liability company in Iceland.

Operations

The company’s core activities include fishing, onshore processing and the production of fishmeal and fish oil. It operates across several Icelandic ports with bases in Vestmannaeyjar, Siglufjörður, Þórshöfn and Þorlákshöfn. Ísfélag’s fishing fleet includes pelagic vessels, freezer trawlers, groundfish vessels and a longline vessel.

The company catches both pelagic species such as herring, mackerel and capelin, and demersal species such as cod, haddock and saithe. Its processing facilities handle fresh and frozen fish, fishmeal and fish oil.

The Vestmannaeyjar factory has a freezing capacity of around 500 tonnes per day for pelagic fish, while its fishmeal factory can process about 1,200 tonnes of raw material per day. All operations are guided by a commitment to responsible fishing and high standards of food safety and traceability (HACCP, BRC).

Products and Markets

Ísfélag’s products are sold worldwide, with its main markets in Europe and Asia.

• Fresh and frozen groundfish (cod, haddock, saithe) are sold mainly to France, Spain, the United Kingdom and the United States.
• Frozen pelagic products (herring, mackerel, capelin) are exported to Poland, Ukraine, Belarus, China and Japan.
• Fishmeal and fish oil are supplied primarily to salmon feed producers in Norway and Scotland.

Sales are largely handled through the companies Iceland Pelagic ehf. and Stormar ehf., both jointly owned by Ísfélag and other Icelandic fisheries. Iceland Pelagic specialises in pelagic sales and operates from Höfn and Hafnarfjörður, while Stormar manages whitefish exports from offices in Höfn and France.

Facilities and Locations

Vestmannaeyjar

In the Westman Islands, Ísfélag operates a powerful freezing plant focusing on pelagic products. Between pelagic seasons, the facility processes whitefish into fresh and frozen products. Around 60 full-time equivalent staff work there, depending on the season.

Nearby, a high-capacity fishmeal and fish oil factory processes capelin, herring, mackerel and blue whiting. The factory handles around 1,200 tonnes of raw material daily. Since 2013, pipes have connected the two facilities, allowing capelin roe to be pumped directly from the roe house to the freezer plant for packing, while heads and offcuts from freezing are returned to the fishmeal factory for further processing.

A major environmental improvement came in 2013 with the construction of an advanced treatment system that purifies all effluent from both plants, converting it into fish oil and meal.

Þórshöfn

At Þórshöfn, Ísfélag runs a modern freezing plant processing both whitefish and pelagic species. Cod and saithe are the main groundfish handled, while herring and mackerel are processed intensively during the pelagic season. Its location near the pelagic fishing grounds makes it ideal for the early capelin season. Continuous investment in processing technology has improved product quality, handling and packaging. The site employs about 70 staff.

The company also operates a fishmeal and fish oil factory in Þórshöfn with a daily capacity of around 900 tonnes of raw material and employs about 20 full-time staff.

Siglufjörður

Ísfélag runs a shrimp factory in the port area of Siglufjörður, producing boiled and peeled cold-water shrimp. The raw material is sourced from Icelandic, Norwegian and Canadian vessels. The factory meets the quality standards of major UK retail chains and holds BRC certification. Traceability is ensured from catch to processing. Main markets for shrimp include the UK and continental Europe.

All shrimp shells are piped to the biotechnology company Primex hf., a subsidiary of Ísfélag, which produces bioactive chitosan fibres from shrimp shells in an environmentally sustainable process. Both the shrimp factory and Primex employ about 20 people each.

Recent Developments

In 2023, Ísfélag Vestmannaeyja hf. merged with Rammi hf. and the combined company was renamed Ísfélag hf. The company has since invested heavily in renewing its fleet, including commissioning a new freezer trawler to replace three older vessels  and in modernising its land-based facilities.

As of the 2025/2026 fishing quota allocation, Ísfélag holds around 6.6% of Iceland’s cod-equivalent quota, placing it among the country’s largest fishing companies.

Sustainability and Environmental Commitment

Respect for the environment and marine ecosystems is central to Ísfélag’s operations. The company prioritises sustainable fishing practices, efficient resource use and reduced environmental impact through advanced processing and waste recovery.

Community Engagement

Ísfélag plays an active role in supporting the communities where it operates. It provides funding for youth projects, sports clubs, rescue teams and cultural activities, promoting wellbeing and local development.

• Youth and education: Support includes sponsorships for innovation projects, the FabLab initiative and the Vestmannaeyjar Brass Band.
• Rescue services: The company supports the Vestmannaeyjar Search and Rescue Team and the Hafliði Team in Þórshöfn, recognising their vital role in maritime safety.
• Sports: Ísfélag sponsors sports organisations such as ÍBV and the Youth Association of Langanesbyggð, along with local clubs for gymnastics, chess, golf and e-sports.
• Cultural projects: The company contributes to community events including Merry Days in Þórshöfn, the Eruption Festival in the Westman Islands and the MATEY Seafood Festival, and has supported local art, such as the statue of Ási í Bæ, a beloved Westman Islands poet and songwriter.

Significance

Ísfélag hf. holds a distinctive place in Iceland’s fishing industry as its oldest limited-liability company and one of its largest integrated seafood producers. With a modern fleet, advanced processing facilities and a strong focus on sustainability, the company remains a key player in Iceland’s maritime economy and a cornerstone of its coastal communities.

It was great to have the opportunity to visit Ísfélag and to learn from both Guðmundur and Björn about the company, its role in the Icelandic fishing and seafood industry and especially importantly its role in the lives of the people of Heimaey – thanks so much Guðmundur and Björn!

We will be posting an article every day, covering this amazing trip and showcasing the Icelandic Seafood industry, cutting edge aquaculture, Icelandic heritage and the hospitality of the Icelandic people. You can read the whole publication here

Images: Ísfélagið