Reyðarfjörður

Reyðarfjörður

Reyðarfjörður is a deep and wide fjord in the Eastfjords of Iceland and is among the longest fjords in the country. Stretching roughly 30 kilometers inland, the fjord is known for its broad inner basin and excellent natural harbor conditions.

At the northern head of the fjord lies the town of Reyðarfjörður, originally known as Búðareyri. The settlement became an officially recognized trading post in the late 19th century and soon developed into an important center for commerce and transportation in eastern Iceland.

In the 1880s, the Wathne brothers, Friðrik and Ottó, established trading and fishing operations in the area, laying the foundations for the town’s economic growth. The establishment of the regional cooperative in 1909 and the construction of road connections through Fagradalur further strengthened Reyðarfjörður’s position as a commercial hub.

Today, Reyðarfjörður forms part of the municipality of Fjarðabyggð and plays a key role in the regional economy. Its naturally sheltered harbor has enabled diverse industrial and transport-related activities.

A major transformation occurred with the construction of the Fjarðaál aluminum smelter nearby, which brought increased employment and population growth, reinforcing Reyðarfjörður’s role as one of the main industrial centers in eastern Iceland.

Although fishing has historically been present, trade, services, and transportation have long been equally important to the local economy, particularly due to strong road connections to Eskifjörður, Fáskrúðsfjörður, and Egilsstaðir.

Today, Reyðarfjörður is a well-established coastal community combining industry, services, and strong regional connections within the Eastfjords.