Sales of knitting yarn grew by 50% last year at Ístex, the company that processes about 99% of all Icelandic wool. Ístex is considering introducing night shifts at their factory to increase production. The company’s CEO hopes to invest more in the company in order to reach bigger markets in Asia, the United States, and Russia.
The year 2021 was a record year for Ístex both in revenue and profit, Viðskiptablaðið reports. The company’s revenue grew by 44% between years, to ISK 1.2 billion [$9.7 million, €8.5 million] last year. The company made a profit of ISK 93.4 million [$751,000, €661,000] last year, especially impressive compared to the year 2020, when Ístex reported losses of ISK 67.5 million [$543,000, €477,000]. In 2021, the company saw a 50% rise in sales of lopi knitting yarn.
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Ístex CEO Sigurður Sævar Gunnarsson says last year’s sales of knitting yarn are likely a historical record for Iceland. More people have taken up their knitting needles in the pandemic, which has led to increased sales both in Iceland and abroad. “We expect continued demand despite the fact that the effects of the COVID pandemic are decreasing. In this light we can mention that after the banking collapse of 2008 there was a big increase in hand knitting, especially in Iceland, that really never decreased.”
Ístex has introduced evening shifts to its factory, but is still not managing to meet demand. The company is now considering introducing night shifts as well. Sigurður would like to see increased investment in the company so that it can pursue larger markets. “There are certain opportunities fr us now and we have to fish for them. There are certain markets where we haven’t been able to gain ground.” He particularly mentions the United States and Asia, though Russia is another market that is likely to grow quickly.