I&I Issues and Images
Iceland
1 • 2009
Photo: Páll Stefánsson
Issues and Images Vol. 5 1-2009 Editor: Benedikt Jóhannesson benedikt@heimur.is Staff writers: Bjarni Brynjólfsson bjarni@heimur.is, Eygló Svala Arnarsdóttir eyglo@heimur.is Design: Erlingur Páll Ingvarsson Photographers: Eygló Svala Arnarsdóttir, Geir Ólafsson, Páll Kjartansson and Páll Stefánsson TCI Editorial Consultant: Lilja Vidarsdóttir lilja@icetrade.is On the cover: Photo by Páll Kjartansson Printing: Oddi Published for the Trade Council of Iceland by Heimur Publishing Ltd. www.icelandreview.com Copyright Heimur Publishing. No articles in the magazine may be reproduced elsewhere in whole or in part without the prior permission of the publisher. icelandreview@icelandreview.com
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Contents 4 On and off Rannveig Rist of Rio Tinto Alcan Aluminum named Business Person of the Year. Unnur Launches New Fishy Collection. Ólafur Stefánsson named Athlete of the Year. Lay Low Signs with Nettwerk. 6 Go the Krýsuvík Way A well-kept secret, as proven by its many unique—and little-known—attractions. 8 Aluminum, Iceland’s Number One Export In 2008, aluminum surpassed seafood products as Iceland’s primary export. 10 HER Time Has Come An experienced parliamentarian is Iceland’s new Prime Minister. 12 A Remote Village Gets a Safer Road The residents of Bolungarvík will soon have a tunnel to Ísafjördur. 13 the Adventures of Óli In the last two years painter Óli G. Jóhannsson has become renowned in international art circles. 14 Exploring Iceland’s Slopes Skiing in Iceland can prove as thrilling as at any foreign ski resort. 16 All About Fish: The Reykjavík Maritime Museum Throughout the centuries fishing has been Iceland’s most important industry, closely intertwined with the character of the nation. 17 Young Icelandic Athletes to Watch With promising young athletes on the rise, the nation’s sporting future looks bright. 18 The European Debate Will Iceland apply for membership to the European Union?
Trade Council of Iceland Borgartún 35, IS-105 Reykjavík. Tel +354 511 4000 Fax +354 511 4040 icetrade@icetrade.is www.icetrade.is
INVEST IN ICELAND AGENCY Borgartún 35, IS-105 Reykjavík. Tel +354 561 5200 Fax +354 511 4040 info@invest.is www.invest.is
Ministry for Foreign Affairs Rauðarárstígur 25, IS-150 Reykjavík. Tel +354 545 9900 Fax +354 562 4878 vur@utn.stjr.is www.mfa.is
20 A Diary of Business and Politics The top stories in business and politics in Iceland from September to November 2008. 21 Film Animation Framestore brings post-production to Iceland. 22 Women at the Helm of two Universities in Reykjavík Kristín Ingólfsdóttir and Svafa Grönfeldt have high ambitions for their institutions. 23 Icelandic Design Three pieces from designer Unnur Fridriksdóttir.
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On and Off
Success:
Rannveig Rist of Rio Tinto Alcan Aluminum named Business Person of the Year
Photo: Geir Ólafsson
Rannveig Rist, CEO of Rio Tinto Alcan in Iceland, was named Business Person of the Year 2008 by business magazine Frjáls verslun. The aluminum industry has been prominent in Iceland since 1970 (see p. 8-9) and in 2008 aluminum became the country’s number one export. Rannveig Rist is an engineer who has been CEO of Alcan (now Rio Tinto Alcan) for the past 12 years. She has also held a seat on the boards of various businesses and corporations. The company has grown and prospered under her leadership and in the spring of 2008 she made a decision to pay up all the company’s debts, a very wise move in these times of economic uncertainty. c
Sports:
Ólafur Stefánsson named Athlete of the Year After the Icelandic handball team brought home the silver from the Olympics in Beijing, there was really no question about Athlete of the Year 2008. The only question was which member of the team would be granted the honor. It came as no surprise that the team’s captain, Ólafur Stefánsson, was awarded the prize. Ólafur has won almost all of handball’s most coveted prizes with his teams in Germany and Spain. He has certainly been one of the world’s best players for years and his somewhat philosophical approach to life continues to inspire both the team and the Icelandic nation. Ólafur was named Athlete of the Year by unanimous vote, a fitting end to an excellent year for the popular handball player. c ólafur Stefánsson, centre.
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On and Off
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Design:
Unnur Launches New Fishy Collection While fish is among Iceland’s most important natural resources, not many would consider wearing it as a fashion item. Enter Unnur Fridriksdóttir, a young designer from Akureyri, whose fashion brand Unnur specializes in bags and belts made from sea leather. The material in her current collection, featuring oversized clutches, soft totes and belts in different widths, primarily originates from fish farms in Iceland and Africa. “I’m really proud of my roots and I have tried to use as much Icelandic material in my designs as possible. I find sea leather incredibly beautiful and it something that is part of my origins,” says Unnur, who is about to launch her 2009 spring collection. “The leather I use does not put animals at risk of extinction; I use fish from aquaculture and leather from other animals that were used for human consumption.” c
Music:
Photo: Páll Kjartansson
Lay Low Signs with Nettwerk Smoky-voiced country-blues singer Lay Low has signed a worldwide record deal (excluding Iceland) with Canada’s leading independent label Nettwerk. The deal came about after Nettwerk CEO Terry McBride, who was in Iceland attending the IMX conference “You are in Control” in October last year, saw Lay Low perform at Reykjavík’s Fríkirkjan church. The concert was held to commemorate the release of her second album Farewell Good Night’s Sleep. “Terry McBride and Mark Jowett of the Nettwerk Music Group want to express that Nettwerk is thrilled to be working with an artist as compelling and beautifully special as Lay Low, and we look forward to doing our best to spread the word about this magnificent artist to as many people in as many countries as possible,” said a spokesperson for the label. c
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Tourism
Go the Krýsuvík Way The Reykjanes peninsula, on Iceland’s southwestern corner, is considered dull and unattractive by many Icelanders, even the local population. The truth is that it is a well-kept secret, as proven by its many unique—and little-known—attractions.
“F
ara Krýsuvíkurleidina” or “Going the Krýsuvík way” (literally: “Taking the Krýsuvík route”) is an Icelandic expression meaning “to take the more difficult path.” While driving to Krýsuvík for the first time on route 42 from Hafnarfjördur, I understood why—on the uneven gravel road the car rattled so violently that I was afraid it would fall to pieces. But the drive turned out to be quite an extraordinary experience. Nothing but rugged lava as far as the eye could see, apart from a few green hillocks—a bit like driving on the moon. Krýsuvík (sometimes also spelled Krísuvík) is a geothermal area in the center of a fissure zone in the Mid-Atlantic Ridge on the southern Reykjanes peninsula, only about 50 kilometers from Reykjavík. The origin of the name 6
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is unclear, but “krýsa” is likely a part of an old Germanic word for “bend” describing the shape of the bay after which Krýsuvík is named. (In modern spoken Icelandic, “Krýsuvík” sounds like “Crisis Bay,” which some have proposed as a fitting nickname for Iceland’s capital.) In the mid-12th century the seaside farm of Krýsuvík was destroyed when lava flooded the bay in a volcanic eruption, dramatically changing the landscape of the region. There is nothing left of the bay now—it has become the Ögmundarhraun lava field. However, for centuries the area remained the largest farmland on Reykjanes with a cluster of 13 farms in its heyday in the late 19th century, but after that people began moving away, deserting one farm after the other. Only the Krýsuvík church (built in 1857) is left of the old community.
Although these days many roads lead to Krýsuvík, there is another reason for taking route 42—the Krýsuvík route. It leads to Kleifarvatn lake, which at 97 meters deep is one of the deepest lakes in Iceland. Renowned for its tranquil beauty, the lake also has a folkloric significance: it is said to be inhabited by a snake-like monster the size of a whale. Kleifarvatn was also the inspiration for a more modern tale. It is “the draining lake” in Arnaldur Indridason’s crime novel by the same name. Water has been draining from the lake since a strong earthquake shook Iceland’s southwestern region in 2000. Since then, the lake has lost 20 percent of its surface area. In Arnaldur’s novel, this leak reveals a skeleton that was supposed to stay hidden forever— setting in motion a thrilling murder-mystery.
Photos: Eygló Svala Arnarsdóttir
Tourism
Shaking off all those creepy thoughts, it’s time to move on to the geothermal field of Seltún, the area’s primary attraction. The smell isn’t exactly appealing, though… as soon as Kleifarvatn disappears behind a lava formation, the stench of sulfur—not unlike rotten eggs—penetrates the senses. The only thing to do is to grab one’s nose and carry on, because soon enough the black, grey and mossy green lava landscape transforms to an amazing color palette of luminous yellow, lush green, rusty red and surprising turquoise. Seltún is a natural wonder of blowing steam holes and bubbling mud pools that can be examined at close range. But beware: they are scorching hot. If the surroundings weren’t so beautiful, this could be hell’s kitchen. Among the many explosion craters in the
vicinity is the small lake of Graenavatn. The water’s blue green color might give the illusion of being in the Caribbean, although swimming in it is unlikely to be comfortably warm. It’s strange to think that, in the past, the farmers of Krýsuvík and foreign businessmen failed to value the uniqueness of Seltún, and used the area for sulfur mining. That utilization has now been banned. However, rumors have recently been circulating that the geothermal activity in the area might be used to power the controversial aluminum smelter in nearby Helguvík, which is currently under construction. Meanwhile, some people would like to preserve the Krýsuvík area the way it is, establishing a volcano park there to attract tourists, similar to a park of that sort in Hawaii.
So Reykjanes, including Krýsuvík, is far from dull and unattractive. Hiking paths lead through lava fields, up hillsides, past ancient volcanic craters and abandoned fishing stations to Krýsuvíkurberg, a seven-kilometer long and 50-meter high cliff inhabited by 100,000 seabirds. This natural treasure with its amazing diversity is just a short distance from Reykjavík and a stone’s throw from the Keflavík International Airport. The local villages have plenty to offer in terms of restaurants, galleries, museums and swimming pools, to say nothing of the Blue Lagoon, which is on the nicely-paved way back to Reykjavík. There is no need to take the Krýsuvík route twice in one day, but it should be tried at least once, the rough ride notwithstanding. c Eygló Svala Arnarsdóttir.
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Industry
Aluminum, Iceland’s Number One Export
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celand’s three aluminum smelters have frequently been controversial. The Icelandic government has been eager to get large foreign companies to buy energy generated by the country’s hydroelectric and geothermal power plants, in order to generate revenue and create jobs. An important goal has been to reduce Iceland’s dependence on fish and seafood products. However, environmentalists have detracted from the idea and said that Iceland should stress its “green” image instead. In 2008, aluminum became Iceland’s number one export. Preliminary numbers indicate that aluminum now makes up about 39 percent of exported goods. This is the first time that fish and seafood products are not the country’s main export. The reason is that Fjardaál, Iceland’s
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newest and largest smelter, reached full-capacity operations in April 2008. The first agreement to build an aluminum plant in Iceland was signed in 1966. Negotiations had been ongoing between the Swiss company Alusuisse and the Icelandic government for several years beforehand. The Icelandic Aluminium Company (ISAL), now Alcan Iceland, was subsequently founded and construction in Straumsvík was soon underway. Aluminum production began in Iceland three years later. The Straumsvík facility is situated just south of Reykjavík by the side of the road leading to Keflavík International Airport. Most visitors to Iceland see the plant on their way to the capital.
Photo: Páll Stefánsson
In 2008, aluminum surpassed seafood products as Iceland’s primary export.
Industry
The company has changed considerably since its beginnings and now produces around 183,000 tons of aluminum a year. Alcan Iceland Ltd. is owned by the global aluminum leader Rio Tinto Alcan and is one of the largest industrial companies in Iceland. It plays a significant role in Iceland’s economy, supplying about 23 percent of all goods exported from the country. The smelter’s annual capacity is 183,000 tons and it employs 450 people year-round. The Nordurál aluminum plant at Grundartangi in Hvalfjördur, about 50 kilometers north of Reykjavík, is owned by Century Aluminum which has its headquarters in Monterey, California. Century acquired Nordurál in April 2004 from Columbia Ventures Corporation.
In 1995, Columbia Ventures Corporation decided to build a new primary aluminum smelter. After evaluating the possible options, a decision was made to expand outside the United States. In August 1996 it became apparent that Iceland was the most feasible alternative. The first earth moving equipment arrived on the site at Grundartangi in early April 1997. Only 14 months later, in June 1998, the first pot was successfully started up. Initially the smelter had a production capacity of 60,000 tons per year, but in summer 2001 this was increased to 90,000 tons per year. In 2006 the production capacity was brought to 220,000 tons and in November 2007 it reached 260,000 tons per year. Nordurál is now preparing for the construction of a new aluminum plant in Helguvík, near Keflavík airport. Over 100 people are presently employed by the project and this number is estimated to reach 800 by late 2009. The first phase of the aluminum plant is expected to begin operations in the fall of 2010 and is estimated to cost ISK 80-90 billion. Iceland’s newest aluminum plant is Fjardaál in Reydarfjördur, East Iceland. Fjardaál (“Aluminum of the Fjords” in Icelandic) is Alcoa’s first greenfield aluminum smelter in more than 20 years, and one of the biggest development and economic projects in Iceland’s history. Construction of Fjardaál began in 2004 following an extensive environmental review and approval by the Icelandic government, and was completed in 2007. The facility consists of a smelter, casthouse, rod production and a deep-water port. Fjardaál reached full-capacity operation on April 8, 2008. The plant produces 940 tons of aluminum a day and has a capacity of 346,000 metric tons of aluminum per year for shipment to Alcoa customers worldwide. It also generates more than 410 permanent Alcoa jobs, plus 300 more indirect jobs, in Iceland. With the start-up of Fjardaál complete, Alcoa is currently working with local authorities and other partners to explore the feasibility of a second smelter in Iceland, potentially to be powered by tapping Iceland’s abundant geothermal resources. This smelter, planned for Bakki in North Iceland, would be the world’s first such operation. Aluminum production has dropped worldwide due to a reduction in demand. So far this has not had an effect on the Icelandic plants and indications are that production will continue at full capacity. This is because the plants are new, efficient and the price of electricity has been competitive. c
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Photo Geir Ă“lafsson
Politics
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Politics
Her Time Has Come Jóhanna Sigurdardóttir, an experienced parliamentarian, is Iceland’s new Prime Minister.
Photo Páll Stefánsson
W
hen Jóhanna Sigurdardóttir lost her bid for chairmanship of the Social Democratic Party almost 15 years ago, she proclaimed “My time will come.” Many smiled and shook their heads as she resigned from the cabinet and broke with her party to form her own splinter group. In the elections for Althingi, Iceland’s parliament, her new party got only four members out of 63 and she spent the next twelve years as a common member of Althingi. After the 2007 elections she returned to her old cabinet post as Minister of Social Affairs and Social Security. Opinion polls have shown that Jóhanna has by far been the most popular minister in Iceland’s government. Still it came as a surprise to most people when she was suddenly the choice of the Social Democratic Alliance as Prime Minister of the new minority government that was formed at the beginning of February 2009. Jóhanna Sigurdardóttir was first elected to Althingi in 1978. She is the longest-serving member of Althingi, having been elected nine consecutive times. She comes from a wellknown family of Social Democrats and her father was also a member of Althingi. Before
her first election to parliament she was chairwoman of the Air Stewardess’s Union and was known as a hard-nosed negotiator. In 1987 she became Minister for Social Services and held that post for seven years through a number of coalitions. She was in the left wing of the Social Democratic Party and was often in opposition to party chairman Jón Baldvin Hannibalsson. In 1993 she resigned as vice chairman of the party, a post she had held since 1984. A year later she ran against him at the party convention. She lost, and subsequently uttered her famous words, mentioned above. She went on to form her own party Thjódvaki, or Awaken the Nation. In opinion polls the party appeared to soar above her old Social Democratic Party, but in the election the result was a disappointing seven percent. For the next 12 years Jóhanna was a member of the opposition. She was one of the founding members of the Social Democratic Alliance, which was formed through the merger of four left-wing parties. In its first elections in 1999 she took the top seat on the party’s list in the constituency of Reykjavík, above then-chairman Össur Skarphédinsson. After the 2007 elections the Social Democratic
Alliance formed a coalition government with the right-wing Independence Party. Jóhanna was one of six ministers from the Social Democratic Alliance in Geir Haarde’s cabinet and took over a somewhat changed version of her old ministry, which is now called the Ministry of Social Affairs and Social Security. The national pension system is now under the auspices of that ministry. Jóhanna Sigurdardóttir has always been known as the voice of the common people. Some of her critics maintain that she spends government money lavishly. She, on the other hand, claims she is fighting to allow people to get their fair share. Everyone acknowledges that she is a hard worker who is very well informed about the matters that fall under her ministry. The general public is happy with her work. In the latest opinion poll she got a positive rating from 73 percent of the respondents. The second most popular minister got a 40 percent approval rating. Now she has suddenly become Prime Minister in a minority government of the Social Democratic Alliance and the Left-Green Party, a government that will be in power until new elections are held on April 25. So it is safe to say that her time has indeed come. c
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Communications
A Remote Village Gets a Safer Road Bolungarvík is the northernmost town on the West Fjords, standing near the outer edge of Ísafjardardjúp bay. The village is beautifully located between steep mountains and is quite close to some of Iceland’s best fishing grounds. Fishing has been practiced here since the Settlement, and for centuries Bolungarvík was one of Iceland’s largest fishing stations. According to the Icelandic sagas, one of the first settlers employed men to fish for her. The village began to take form when trading began in 1890. On the way into town, a restored fishing hut reminds one of the old days. It has a guide in an old seaman’s outfit, looking like he just checked in from the 19th century. Even though the village is ideally located 12
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for fishing it was traditionally very remote since it could only be reached by sea. The community’s isolation was broken in 1950 when the road over Óshlíd was opened. The road was built into the slope of a very steep mountain and was always considered one of the most dangerous roads in Iceland due to the threat of avalanches in winter and mudslides or falling rocks in summer. The danger has been reduced, but not eliminated, by the installation of safety nets and tunnel portals. A tunnel straight to the town of Ísafjördur is therefore of major importance to Bolungarvík’s 904 residents and numerous visitors. The 5.1 kilometer tunnel, which passes through a mountain, will be com-
pleted in 2009. The design takes into account the latest research and safety in tunnels and employs a complex network of sensors to ensure good ventilation. The tunnel is very important to tourists as well as residents. In addition to the restored fishing hut, which is a must-see, the artifacts at the West Fjords Natural History Museum include a polar bear. The outdoor swimming pool is one of the best in the country. For those who are not afraid of heights, a trip to the top of the mountain Stigahlíd is a memorable outing. In June and July one can watch the sun dipping down to the sea just after midnight before rising again, without ever disappearing. That alone might be worth the trip to Iceland. c
Photos: Páll Stefánsson
The residents of Bolungarvík will soon have a tunnel to Ísafjördur.
Art Education
The Adventures of Óli After years of obscurity, artist Óli G. Jóhannsson is finally making a name for himself, in Iceland and abroad.
In the last two years, painter Óli G. Jóhannsson has become renowned in international art circles. His paintings have traveled from the town of Akureyri to the major art centers of London and New York and as far as Australia and the Persian Gulf.
and I somehow got the feeling that it was quite remarkable to be a painter. I drew and painted throughout my school years but then decided to study business at the University of Iceland.
BB: You are not an academically trained artist. Have you always painted?
ÓG: When I graduated from high school I had a reference from the great Icelandic painter Svavar Gudnason for admission into the Royal Academy of Art in Copenhagen, where he had studied. I had guided Gudnason when he was fishing for salmon in Laxá in Adaldalur. He became a great supporter of mine.
ÓG: I hear that people like the complicated abstract construction, which still has some figurative implications. They can always find something new in the paintings which need time to be fully appreciated..
BB: Why?
Portret: Páll Stefánsson
BB: Do you consider yourself lucky?
ÓG: I’ve always had a love for colors. My parents encouraged me to draw and paint and art teachers at school were particularly encouraging. In summers I was sent to a farm in Vatnsdalur valley and got acquainted with painter Eyjólfur Eyfells who visited. The farmers in Vatnsdalur had great admiration for him
BB: In your opinion, what is it in your painting that people admire?
ÓG: I think it’s wonderful to have stumbled upon this opportunity which is ferrying my art around the world when the art market here is undeveloped and partly collapsed. No one in their right mind tries to break out as an artist. I am lucky to have a good wife who has supported me and four children and eleven grandkids. The old man is becoming grey. c Bjarni Brynjólfsson
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Skiing
Exploring Iceland’s Slopes
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e’re not going on a skiing trip this Christmas,” a colleague of mine announced last December with a gloomy expression. For the first time in almost a decade he and his wife had decided that, in light of the weakened state of the króna, the annual family Christmas trip to a foreign skiing destination had simply become too expensive. “Why don’t you go skiing in Iceland instead?” I asked innocently, receiving a you’ve-got-to-bekidding-me look in response. “When you’ve been to the best ski resorts in the world, skiing in Iceland is a drag,” he sulked. Iceland doesn’t have especially high mountains, as many of them were scraped flat by a glacier during the Ice Age. The country’s highest peak is Hvannadalshnjúkur at 2,110 meters. Iceland doesn’t get especially cold in winter either; the climate is fairly mild despite the country’s northern latitude due to the Gulf Stream, which originates in the Gulf of Mexico and encircles the country. The coastal lowlands in Iceland have an average January temperature just below 0°C (32°F),
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while the temperature usually remains around -10°C (14°F) in the central highlands. That is not to say that booking a skiing trip in Iceland is pointless. There are lovely little ski resorts all around the country, in the north, south, east and west. Many families like to spend sunny winter days on the slopes and there is hardly an Icelander that has never gone skiing. Snowboarding is constantly growing in popularity, especially among Iceland’s teens, and cross-country skiing is also a sport favored by many. Some excellent tracks in beautiful surroundings can be found throughout the country, such as in the forested outdoor recreational areas of Heidmörk, in the outskirts of Reykjavík, and Kjarnaskógur, outside Akureyri, in the north. This season, Iceland’s ski resorts opened unusually early, on October 26 (the best skiing conditions are usually between January and early spring, Easter being a traditional skiing holiday). On that day the inhabitants of Dalvík, a peaceful town nestled at the roots of Mt. Böggvistadafjall in northeast Iceland, woke up to a 60-centimeter even blanket of
snow. Despite the fact that the official First Day of Winter was celebrated the previous day, such an extensive amount of snowfall usually doesn’t occur until later in the winter. The locals were thrilled. “We haven’t seen these kinds of conditions at this time of year for many, many years,” Óskar Óskarsson, chairman of the Dalvík Skiing Association, told Fréttabladid. The Dalvík ski resort was the first to open this winter and others quickly followed, but the fun didn’t last for long. Since October the temperatures have risen and dropped, the snow has melted and new has fallen, only to melt again. Icelanders were deprived of a white Christmas this year. Temperature fluctuations and unpredictability are two main characteristics of Icelandic weather. To cope with the situation, some ski resorts have invested in artificial snow machines, like the resort in Mt. Hlídarfjall, Akureyri’s skiing area. Hlídarfjall is regarded as one of Iceland’s premier ski resorts, accommodating both beginners and more experienced skiers, cross-country skiers, off-piste enthusiasts
Photos: Páll Stefánsson
Contrary to popular belief, Iceland doesn’t have especially high mountains and, in spite of the country’s northern latitude, the climate is fairly mild in winter. Yet skiing in Iceland can prove as thrilling as at any foreign ski resort.
Skiing
and snowboarders. With illuminated slopes, the few hours of daylight in winter are not an obstacle. And with the snow machine, lack of precipitation isn’t either. Ski lifts are located in mountain slopes in various other places—there is plenty to choose from. In the capital region there are the Bláfjöll mountains (Iceland’s largest ski resort) and Mt. Skálafell. Ísafjördur, the capital of the West Fjords, has the Two Valleys, Tungudalur for slalom skiing and Seljalandsdalur for cross-country skiing. In the north, in addition to the two skiing areas already mentioned, one can ski on the slopes of Mt. Tindastóll in the region of Skagafjördur, while Fjallabyggd municipality, renowned for having produced some of Iceland’s most enthusiastic skiers, offers skiing in Skardsdalur valley in Siglufjördur and Mt. Tindaöxl in Ólafsfjördur. In the east, the towns of Egilsstadir and Seydisfjördur jointly operate the skiing area in Stafdalur valley, but the largest ski resort in east Iceland is Oddsskard in Fjardabyggd municipality. While snowfall may sometimes be scarce in those areas, there are parts of Iceland that remain frozen and snowy year-round… namely the glaciers. Esjufjöll is a subglacial volcano in the southeastern corner of the Vatnajökull icecap, the largest glacier in Europe. The area is heaven for back-country skiers, who are provided with fairly easy access up the glacial tongue of Breidamerkurjökull. However, skiers must take great care due to the crevasses in the glacier and are strongly advised to travel with a guide or a friend familiar with the
area. Another area suited for back-country skiing is the shield volcano of Ok in the western highlands, rising to almost 1,200 meters above sea level. There used to be a glacier on top of Ok, but it has now disappeared. The highlands can be dangerous so it might be safer to book guided tours. The Icelandic Touring Association, along with other travel agencies, organizes skiing trips in winter and early spring. These include cross-country skiing in the Landmannalaugar hot spring region in the southern highlands, with overnight stays in cabins, and slalom skiing on
Tröllaskagi peninsula between the northern regions of Eyjafjördur and Skagafjördur, where the days are spent on the slopes and the evenings and nights on a farm (fi.is). Faced with all those options, do we really need the Alps? At least now that traveling abroad has become too expensive for the average Icelander, we should make a point of exploring the skiing areas in our own country. As did my colleague. He did cheer up in the end and took his family skiing last Christmas—in Iceland. c
A short guide to Iceland’s main ski resorts Akureyri: One of the largest and best skiing areas, although it can be crowded, especially at Easter. The location is perfect, just eight minutes from Akureyri by car. hlidarfjall.is
Fjardabyggd: Located high above Reydarfjördur fjord, this skiing area is one of the most beautiful in Iceland, although the slopes could be better. oddsskard.is
Siglufjördur: Good snow and steep slopes, with a fantastic view from the top lift. Many consider it the best place to ski in Iceland. skard.fjallabyggd.is
Skagafjördur: Mt. Tindastóll is good for skiing although there is only one lift. The area is very well maintained and is well suited for families—but not daredevils, as the lower part of the area is too flat. tindastoll.is/skidi
Ólafsfjördur: The slopes are steep, but there is only one lift. Not as good as the nearby resorts of Siglufjördur and Dalvík, but the only skiing area in Iceland with a ski jump platform. skiol.fjallabyggd.is Dalvík: One of first places to open every autumn. The resort is excellent for families and beginners and is conveniently located. skidalvik.is
Ísafjördur: A very special ski resort, so close that you can almost walk from town. The surroundings are beautiful, but the slopes could be steeper. isafjordur.is/ski Reykjavík (Bláfjöll): The largest ski resort in Iceland, with very good lifts. It is only 20 minutes by car from the capital but, unlike the areas in the north, lacks consistent snowfall. skidasvaedi.is
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Museum
All About Fish: The Reykjavík Maritime Museum Throughout the centuries fishing has been Iceland’s most important industry, closely intertwined with the character of the nation.
Arterial for Country and City: Set up to commemorate the 90th anniversary of the Reykjavík Harbor. Visitors can step onboard the historical freighter Gullfoss, which Icelandic entrepreneurs constructed in 1912 and which brought Iceland one step closer to independence from Denmark. A special ceremony was held when the vessel first arrived in Iceland in spring 1915. From Gullfoss’s deck, visitors can walk down to a wooden pier surrounded by seawater, bringing them back to old-fashioned pier life before the advent of harbor construction. 16
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From Poverty to Abundance: It is difficult to imagine what life was like in Iceland 1,000—or even 100—years ago. Although the country’s fishing industry has undergone significant changes throughout the centuries, particularly in the past century, the importance of the industry to life on this island remains unchanged. This exhibition illustrates the development from rowboat fishing to modern trawlers, and focuses on the lives of fishermen through the ages. The Shark—Light and Life Energy: In cooperation with the Reykir Regional Museum, this exhibition covers shark fishing and the processing of shark oil, which used to be an extremely valuable export product for Iceland, being, for example, used for street lamps in Copenhagen. Today shark oil and other fish oils are primarily used for human consumption, and are a life elixir for many Icelanders. Hidden Craftsman: Víkin’s reception hall hosts a retrospective exhibition of the works of photographer Thorleifur Thorleifsson and his brothers. Among Thorleifsson’s finest works are three-dimensional pictures of Reykjavík Harbor.
Special Exhibitions: This hall hosts various exhibitions, photographs, paintings and visiting exhibition from other museums. Its debut exhibition is “Herring and the Seaside”, dedicated to the paintings of Sigurjón Jóhannsson. Coast Guard cruiser Ódinn, built in Aalborg, Denmark in 1959, is among the museum’s artefacts. The vessel is docked at a special pier and visitors to the museum are invited to walk onboard and explore the ship in a guided tour. Ódinn participated in the Cod Wars with Britain in the latter part of the 20th century and the cruiser’s most powerful weapon, a 57-mm cannon, is still there. However, the most successful weapon in the Cod Wars was the trawl-wire cutters that are on display on the afterdeck. Ódinn was also used effectively as a rescue vessel, towing nearly 200 vessels to safety and saving the crews of grounded or sinking ships. Iceland’s past, present and future are closely tied up with fishing and seafaring; they dominate the atmosphere of seaside villages all around the island and are closely intertwined with the character of the nation. Therefore it is impossible to truly get to know Iceland without getting to know its fishing history. c Eygló Svala Arnarsdóttir.
Photo: Páll Stefánsson
Víkin – The Reykjavík Maritime Museum is a young museum on the capital’s seaside, located inside the facilities of the old Baejarútgerdin fishing company in the harbor district of Grandagardur, which has played a significant part in Reykjavík’s fishing history. The location lends the museum, which is dedicated to the evolution of fisheries and harbor culture in Iceland throughout the centuries, an authentic atmosphere. The museum’s balcony offers a splendid view of the harbor—giving visitors a chance to travel from the past back to today’s harbor life in Reykjavík. Víkin is in constant growth. The museum’s exhibition space was recently enlarged, and now measures 700 square meters, accommodating exhibitions in five separate halls.
Sports
Young Icelandic Athletes to Watch
Photo: Páll Stefánsson
Soccer and handball are the most popular sports in Iceland and those in which Icelanders have been the most successful in the international arena. And with promising young athletes on the rise, the nation’s sporting future looks bright. The year 2008 marked a turning point in Iceland’s sporting history. In August the Icelandic men’s handball team brought back the silver medal from the Olympics in Beijing. The players were celebrated as heroes upon their return, as never before had Icelanders been so successful in a group sport. Then, in October, the Icelandic women’s soccer team qualified for the UEFA European Championship—the first Icelandic soccer team in category A ever to secure a seat in the 12-team finals in a major tournament. The following young athletes are about to launch their international careers as professional soccer and handball players and are likely to make Iceland proud on foreign ground. Gudný Björk Ódinsdóttir (born 1988), soccer player with Reykjavík club Valur, signed an agreement with Swedish women’s premier league team Kristianstad in November. “It is […] a big step forward because the
Swedish league is among the world’s best,” she told reporters. Other Icelandic soccer players have also played with Kristianstad: Erla Steina Arnardóttir, Hólmfrídur Magnúsdóttir and Rakel Hönnudóttir, who has now been signed by Danish club Broendby. Icelandic soccer trainer Elísabet Gunnarsdóttir, who coached Valur to victory in the Icelandic national championships last summer, recently became Kristianstad’s trainer. Gudlaugur Victor Pálsson (born 1991), soccer player with Danish club AGF and previously with Reykjavík clubs Fylkir and Fjölnir, signed an agreement with English premier league team Liverpool in January. Gudlaugur Victor first caught Liverpool’s attention last summer and was subsequently invited to practice with the club for one week in September as a tryout. “I was very nervous to go to Liverpool for a tryout last fall, but after that experience I’m not nervous anymore,” Gudlaugur Victor said. “But it
will certainly be difficult. It is a new challenge for me and I will do my best.” The contract expires in June 2011. Rúnar Kárason (born 1988), handball player with Reykjavík club Fram, signed a two-year agreement with German premier league team Füchse Berlin in December. He will join their ranks next spring. Danish handball clubs GOG and FCK also expressed interest in Rúnar, who was initially more interested in playing there. “I have been dreaming about playing with FCK in Copenhagen,” he said before being taken on by Füchse Berlin. Aron Pálmarsson (born 1990), handball player with Hafnarfjördur club FH, signed a fouryear agreement with German premier league team Kiel in December. His contract takes effect in July 2009. “It is amazing to have reached an agreement with Kiel. It is my dream team and I couldn’t possibly turn them down,” Aron told reporters. c Eygló Svala Arnarsdóttir.
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Iceland and the EU
The European Debate Will Iceland apply for membership to the European Union?
T
he debate on whether Iceland should join the European Union (EU) has been lively and it is very difficult to see which direction it is taking. Iceland is currently cooperating very closely with the EU through membership in the European Economic Area and the Schengen agreement on common border control. Most people seem interested in adopting the euro to replace the battered Icelandic krona. However, the country is divided on the question of whether or not to apply for membership to the expanding club.
The political parties
Only one political party has EU membership on its agenda, the Social Democratic Alliance (SDA) of Prime Minister Jóhanna Sigurdardóttir. However, membership application is not on the agenda of the new coalition 18
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government with the Left-Green Party. SDA party leader Ingibjörg Sólrún Gísladóttir had previously stated that the SDA would no longer cooperate with its previous coalition partner, the Independence Party (IP), unless the IP agreed to start the application process. Now, however, the issue does not seem to be as pressing for the SDA. The Left-Green Party has always been strongly opposed to EU membership. Still, Chairman Steingrímur J. Sigfússon has said that he would not be opposed to starting the application process. The party has said that, rather than joining the EU and adopting the euro, Iceland should form a monetary alliance with Norway. Norway’s Minister of Finance Kristin Halvorsen said she was willing to discuss the matter with Steingrímur J. during her visit to Iceland in early February. Minister of
Business Affairs Gylfi Magnússon and Prime Minister Jóhanna Sigurdardóttir both doubt that this can be a future solution for Iceland in monetary matters. The Independence Party is a right-of-center party that has led Iceland’s coalition governments for most of the past 18 years. Former Chairman David Oddsson is a staunch opponent of the EU and the party has followed that line. In November 2008, party Chairman Geir H. Haarde called a special party convention to debate whether to consider applying in light of Iceland’s changed circumstances. The convention was to have been held in January 2009 but was postponed until March as it was discovered that the chairman would need treatment for a small, malignant tumor of the esophagus. The EU question has made for a very lively debate within the party and
Iceland and the EU
the outcome at the moment seems uncertain. In January 2009 the Progressive Party supported a proposal for applying for membership to the EU with very strongly worded conditions. It seems likely that, under those conditions, the EU would not accept Iceland for membership.
was when the NATO base in Keflavík was one of the outposts of US military policy. A small, independent nation in deep economic trouble needs political allies. By joining the EU the country would become a fully-fledged member of a very big market and would have a voice at the table where decisions are made. Iceland could then concentrate on the areas that matter to it the most, especially fisheries.
Photo: Páll Stefánsson
The pros …
In light of the economic collapse, most people seem to agree that the Icelandic krona cannot be the currency of the future for Icelanders. However, there is strong disagreement on which course to take. If it were possible to join the European Monetary Union (EMU) without joining the EU, that option would probably be the number one choice for the majority of Icelanders. The EU, on the other hand, has ruled out that option. The only way to join the EMU would be to apply for EU membership and then fulfill the stability conditions for taking up the euro. Secondly, many people have seen that Iceland appears politically isolated. The old alliance with the US is not as strong as it
… and cons
The common fisheries policy of EU is the issue that most Icelanders cite as their objection to membership. If Iceland were to join, a final decision on fishing quotas would be taken in Brussels, not in Reykjavík. This may be a formality, but decision-making might not be as swift in light of new information as it is now. A more serious objection would be that foreigners would be allowed to invest in Icelandic fisheries companies. Current legislation forbids this. The fear is that this might lead to “quota hopping”—the transfer of fishing quotas to foreign vessels. It should be stressed that joining the EU would not automatically open up fishing
grounds for foreign fleets since EU policy dictates that quotas be allocated based on previous fishing experience. Almost no foreign ships have fished in Icelandic fishing grounds in the past decades. The agricultural sector, meanwhile, fears competition from abroad and less support from the government than it receives now. Lastly, many think that by joining the EU the Icelandic nation would be giving up a part of its sovereignty. Important decisions would be made in Brussels and Strasbourg, not Reykjavík. The likely outcome? Public opinion on whether or not to join the EU seems to fluctuate from month to month. The current economic and political climate requires a decision to be made soon on whether to apply for membership. Advocates of membership say that Iceland could get some permanent concessions; opponents hold that such exceptions would only be temporary. One thing seems certain: this issue is going to be wildly debated in the coming months and perhaps years. c
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November 14: Prime Minister Geir H. Haarde and Minister for Foreign Affairs Ingibjörg Sólrún Gísladóttir unveiled extensive measures aimed at helping the general public cope with the impact of the economic crisis, including allowing homeowners to apply for the possibility of delaying up to 20 percent of their monthly mortgage payments. November 16: An agreement was reached between Iceland and the European Union member states on compensation for Icesave account holders in the UK and the Netherlands. Iceland agreed to pay the minimum deposit insurance. November 19: The executive board of the International Monetary Fund (IMF) approved Iceland’s request for a loan. The IMF will contribute USD 2.1 billion (EUR 1.7 billion) and the Nordic countries (Norway, Sweden, Denmark, Finland and the Faroe Islands), Russia and Poland USD 3 billion (EUR 2.4 billion) in additional loans. November 24: A resolution proposal on a vote of no confidence in Iceland’s government, submitted by the opposition three days earlier, was rejected in parliament with 18 votes for and 42 votes against, following five hours of debates. November 24: A well-attended open meeting where the public could pose questions to members of the cabinet, including Prime Minister Geir H. Haarde and Minister for Foreign Affairs Ingibjörg Sólrún Gísladóttir, was held at the University of Iceland Cinema. Almost 2,000 people filled the theater. Eight cabinet ministers out of 12 attended the meeting. November 28: Iceland’s Althingi parliament accepted a bill on amendments to the laws on currency issues, providing the Central Bank with extensive authority to temporarily limit or halt currency flow out of the country. The laws also provide the Central Bank with the right to demand that Iceland’s export companies transfer all profits earned in foreign currency to Iceland. December 1: Thirteen seed companies began operations at Torgid, a new trade center opened by the Innovation Center Iceland in the facilities of Landsbanki bank on Austurstraeti 16 in Reykjavík. At Torgid, young companies are offered office space and a framework to develop their innovative business ideas. December 2: Leaders of Iceland’s government, Prime Minister Geir H. Haarde and Minister for Foreign Affairs Ingibjörg Sólrún Gísladóttir, presented a 12-step plan to help companies cope with the economic crisis. According to the plan, the boards of the new banks will have extensive responsibilities. They are to establish clear and transparent criteria on how to undertake extension of loan periods and change the compositions of loans, reduce loans and merge companies. December 17: Icelandic singer-songwriter Björk and Icelandic financial services provider Audur Capital established a joint venture fund called BJÖRK, named after the singer. The fund will be used to invest in seed companies in Iceland.
A Diary of Business and Politics
Audur Capital has already contributed ISK 100 million (USD 867,000, EUR 614,000) to the fund. It is hoped that the fund will soon have close to ISK 2 billion (USD 17 million, EUR 12 million) in capital and that companies will be able to apply for grants from the fund this year. December 20: Iceland’s Althingi parliament agreed on a legal framework for the rights to search for and harness fossil fuels in the socalled Dragon Zone off Iceland’s northeastern shore, to be launched on January 15, 2009. The National Energy Authority (Orkustofnun) will supervise operations in the Dragon Zone. December 22: Althingi, Iceland’s parliament, passed the new budget bill with an estimated ISK 150 billion (USD 1.2 billion, EUR 870 million) deficit to the state budget in 2009. The Ministry of Finance is predicting that the year 2009 will be the worst year of the economic crisis. December 29: Rannveig Rist, CEO of Alcan in Iceland, was named Businessperson of the Year 2008 by business magazine Frjáls verslun. The selection committee concluded that Rist has great leadership abilities. Rist was the first woman in Iceland to become a CEO of a company the size of Alcan. December 29: Iceland saw a 20 percent increase from 2007 in the number of foreign tourists who stayed at hotels and guest houses in Reykjavík during Christmas 2008, according to the Icelandic Travel Industry Association. Approximately 1,200 people booked accommodation in Reykjavík on Christmas Eve, mostly from the UK, the Nordic countries, Germany, the US, Russia and Japan. December 31: Prime Minister Geir H. Haarde said that a national referendum should not only be held on whether or not Iceland should join the European Union but also whether Iceland should begin membership talks in the first place. A special committee within the Independence Party is currently looking into the pros and cons of EU membership for Iceland and will present its findings at the party’s general meeting in January. January 4: Minister for Foreign Affairs and chair of the Social Democratic Alliance Ingibjörg Sólrún Gísladóttir said that early parliamentary elections could take place in spring 2009, following changes to the constitution aimed at enabling Iceland’s accession to the European Union. January 4: Representatives from the airline Iceland Express and travel agency Ferdaskrifstofa Íslands signed a declaration of intent on the airline’s acquisition of the travel agency. The price of the acquisition has not been revealed.
January 6: The resolution committee of the old Kaupthing bank, which has now been nationalized, announced its decision to sue British authorities with support from the Icelandic state for seizing the assets of Kaupthing’s subsidiary in the UK in October 2008. January 13: Ólafur Thór Hauksson, the sheriff of the Akranes region in west Iceland, was appointed special prosecutor to investigate the events leading up to the collapse of Iceland’s banking system in October 2008. January 16: Minister of Fisheries Einar K. Gudfinnsson increased the cod fishing quota from 130,000 to 160,000 tons for the current fishing season in light of the economic difficulties facing the nation and because of positive reports on the condition of the cod stock. The Federation of Icelandic Fishing Vessel Owners welcomed the move, estimating that export revenue would increase by ISK 10 billion (USD 78 million, EUR 59 million) as a result. January 16: Almost 1,000 apartments in Iceland are listed at Leigulistinn rental housing agency, of which 825 are located in the capital region. At the same time last year, only 200 apartments in total were listed for rent. Since last summer the price of rent has dropped by 20 percent on average. January 18: Sigmundur Davíd Gunnlaugsson was elected the new chairman of the Progressive Party after a heated contest against Höskuldur Thór Thórhallsson (who, by mistake, was initially declared winner of the elections). The previous chairman of the Progressive Party, Gudni Ágústsson, resigned from politics in November last year. January 23: Prime Minister of Iceland Geir H. Haarde announced that he had been diagnosed with esophageal cancer. It was also announced that he will not seek reelection as chairman of the Independence Party, that the party supports elections on May 9, and that the party’s national convention will be postponed until the end of March. February 1: The government of Jóhanna Sigurdardóttir, Iceland’s first female Prime Minister and the world’s first openly gay PM, was formally appointed at the presidential residence Bessastadir. The Social Democratic Alliance and the Left-Green Party form a minority government with support from the minority of MPs in parliament, and the Progressive Party will defend the coalition against a motion of no confidence. The previous Independence Party-Social Democrat coalition government collapsed in the week prior. There are ten ministers in the new government and for the first time in Iceland’s political history there is an equal number of male and female ministers. Four ministers come from the ranks of the Social Democrats, four from the ranks of the Left-Greens and two from outside parliament. Former Minister for Foreign Affairs Ingibjörg Sólrún Gísladóttir is retiring from the cabinet but will continue as the chairperson of the Social Democratic Alliance. The new coalition will only be in power until the upcoming parliamentary elections, scheduled for April 25. c Eygló Svala Arnardóttir
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Film Animation Framestore brings post-production to Iceland. Framestore has been working in digital film and video for over twenty years. Under the leadership of Dadi Einarsson, lead animation supervisor and Framestore veteran, a small outpost of talented individuals has recently opened an office just off Reykjavík’s Austurvöllur square. “Framestore is a highly successful company that has been growing pretty steadily for over 20 years. Recently we’ve begun looking at ways in which we might de-centralize some of the work we do. There are many approaches to this, and I’m always interested in exploring original ideas. Dadi impressed me as someone with all the necessary initiative, drive and know-how to carry it through,” says William Sargent, Framestore’s joint CEO.
Dadi grew up in Iceland with animation in his DNA. “My mother and her partner were both traditional animators,” he says, “so when I was starting out I borrowed their college notes, attempted to translate them into 3D and produced CG character animation and visual effects for Icelandic and Swedish TV.” Ten years ago, he took the plunge and relocated to London. After a period in New York, Dadi returned to Framestore in 2006, where his work has included the role of Animation Supervisor on the Academy Award winning VFX for The Golden Compass. Of his return to Reykjavík, Dadi says, “It felt like the right time to go back home. Iceland has all the ingredients needed for a visual effects
and animation studio and there’s huge interest in Framestore opening here. There is a strong history of film here on the production side, and there are also an amazing number of talented individuals who have studied animation or worked in visual effects both in Iceland and abroad. They will thrive on the kinds of projects that Framestore has to offer.” There’s plenty of fun to be had. As Dadi points out, “From Reykjavík, you can drive to see geysers, glacial waterfalls, drive over a glacier on a monster truck, swim in natural hot springs under the northern lights and have a crazy night out on the town, all in one day.” Of course not forgetting “produce world class digital animation.” c 21 I&I 21 I&I
Education
Kristín Ingólfsdóttir, Rector of The University of Iceland.
Svafa Grönfeldt, Rector of Reykjavík University.
Women at the Helm of two Universities in Reykjavík
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of Iceland as a special college. The number of students at the University reached 13,650 in January 2009, a new record. Reykjavík University (RU) is a much younger institution, operated by the Icelandic Chamber of Commerce. It was established in 1998 and initially focused on Business and Computer Science. Since then many more programs have been added, including Law and Engineering. The Technical University was incorporated into RU in 2005. Currently a new university campus is under construction at a location near Reykjavík airport. The Rector of RU, Svafa Grönfeldt, is not the
first woman to hold that position. She took over in 2006 when the first Rector of RU, Gudfinna Bjarnadóttir, decided to stand for election to Althingi, Iceland’s parliament. Svafa has had extensive experience in the business community; she was previously a high-ranking executive at pharmaceutical company Actavis and has served on the boards of many companies and associations. The women heading Iceland’s two main universities have both made their mark and it is clear that each institution is headed for a very different and exciting future. c
Photo Left: Morgunblaðið
The University of Iceland was established in 1911 and will soon be reaching the respectable age of one hundred years. In 2005, Kristín Ingólfsdóttir, a professor of pharmacology, became the first female Rector at this temple of higher learning in Iceland. She soon set high goals for the university, stating that she wanted it to become among the top 100 universities in the world. Everyone agrees that this is a great challenge and that the goal may be very hard to reach, but also that it may induce significant improvements, even if it is not reached. The university has gone through a restructuring, which includes incorporating the University of Education into the University
Photo right: Geir Ólafsson
Kristín Ingólfsdóttir and Svafa Grönfeldt have high ambitions for their institutions.
Icelandic Design Three pieces from designer Unnur Fridriksdóttir. Unnur Sea leather has unique qualities. It is a resilient material that can be used as regular leather but because of the scales, the texture changes continuously with growing use. My inspiration for the current collection was a friend’s painting mixed with Icelandic autumn colors, while the shapes of the bags were inspired by the personalities of the women after which they are named. All the names of my products are very personal—they come from great valkyries in my family.
Materials: Sea leather (Icelandic salmon/African Perch) and Italian leather. Size: Approx. 2”x5”x13.5” to 3.5”x14”x16”. Year: 2008. unnur.com. Photos by Emily Sandifer.
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Photo: Pรกll Stefรกnsson
. Trade Council of Iceland . www.icetrade.is . invest in iceland agency . www.invest.is . Ministry for Foreign Affairs . www.mfa.is 24
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