Located at the inner end of a long fjord bearing the same name, Reyðarfjörður stands as a vibrant hub in East Iceland. With a population of 1,368 in 2024, it serves as one of the most populated and central communities within the Fjarðabyggð municipality. The town sits in the embrace of steep mountains, with the highest peaks in the area reaching 972 metres, providing both shelter and a dramatic backdrop.
Rain and coastal fog are frequent companions here, yet summer days can bring the country’s warmest temperatures. Reyðarfjörður’s natural harbour has influenced much of its history. It operated as a significant fishing and trading centre from the early twentieth century. Its strategic location did not go unnoticed during the Second World War, when it became the site of the second-largest Allied base in Iceland. Today, a World War II museum keeps the memory of this chapter alive at the site of a former military camp above the town.
A modern aluminium industry and new community ties
For many years Reyðarfjörður was known for its quiet fishing activity. However, the early 2000s marked the start of rapid change when the decision was made to build an aluminium plant, Alcoa Fjarðaál, close to the town. The smelter, constructed by Bechtel between 2004 and 2007, drew thousands of workers from across Europe, notably a large number from Poland. At the peak of construction, the population of temporary foreign workers rose to 2,800, giving the town the highest share of foreign residents in Iceland during those years. This dramatic influx left lasting traces on the local community.
The Fjarðaál smelter became fully operational in 2008. It now produces up to 346,000 metric tons of aluminium annually and provides employment for about 450 people. In order to support the energy needs of the new industry, the Kárahnjúkar Hydropower Plant was built in a neighbouring region, deeply linking the area’s economy with Iceland’s powerful rivers.
Distinctive landmarks and cultural life
Reyðarfjörður’s diversity is visible not only in its industry but also in its places of worship. In 2017, the town welcomed a new church, St. Thorlak Catholic Church. The wooden structure originated in Slovakia, where it was constructed, then dismantled, shipped to Iceland and rebuilt by the fjord. The consecration ceremony saw attendance from dignitaries including Slovakia’s Prime Minister and the Bishop of Reykjavik, a native of Slovakia.
The town’s geography makes it a neighbour to several other villages in Fjarðabyggð, with short distances over paved roads or tunnels connecting to Eskifjörður, Fáskrúðsfjörður and Egilsstaðir to the west. Local sporting and cultural groups are active, with Reyðarfjörður sharing achievements in wrestling, football and music with nearby communities. Its surroundings and striking scenery led producers of the Sky Atlantic television series Fortitude to choose Reyðarfjörður as a filming location, further raising the town’s international profile.
Sources
- Wikipedia
- Wikipedia (Icelandic) in Icelandic
