Wool processing has been a trade in Mosfellsbaer since 1896, previously with the the company Álafoss of Iceland. In 1991, the company Ístex was formed and took over the wool processing. Ístex stands for Íslenskur Textiliðnaður which translates into Icelandic Textile Industry.
Istex is the company producing and selling the famous Alafosslopi and other Lopi yarns for hand knitting such as Plötulopi, Bulkylopi and Léttlopi. All the products are made out of high quality Icelandic wool.
Istex is buying the wool directly from the farmers in Iceland and then process it to yarn. The wool scouring is located in the town Blönduós in north of the country and the spinning mill in the town Mosfellsbaer nearby Reykjavik.