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FTA with China makes Iceland more attractive

Staff writer |
More international companies have expressed their interest in launching new plants in Iceland following the Free Trade Agreement (FTA) between China and Iceland, which came into force earlier this month.

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"There won't be any tariff on products that previously had tariff. This makes Iceland suddenly attractive for new plants and manufacturing goods for China," said Ossur Skarphedinsson, the Icelandic former foreign minister who signed the FTA with China on behalf of the Icelandic government.

Mining companies in nearby Greenland should be interested in exporting metal to China through Iceland, according to Efla, an Iceland-based engineering consulting company which serves international companies interested in investing in Iceland.

Bremen Ports is already developing a harbor in Finnafjordur in the northeastern part of Iceland in cooperation with local municipalities.

Four companies, including United Silicon Carbide, Silicor Materials, Thorsil and PCC Silicon Metal Production Plant, are planning to build silicon plants in Iceland.

United Silicon has signed a power purchase agreement with the Icelandic National Power Company Landsvirkjun. The plant will be located in Helguvik, the same location as Thorsil's Silicon Metal Plant.

The German industrial group PCC Silicon will construct a new metallurgical grade silicon metal production plant in Husavik in northern Iceland. The US firm Silicor Materials will start building a plant in Grundartangi in western Iceland later this year.

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