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 Lopi yarns for hand knitting. They buy 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.