Húsasmiðjan and circular solutions in the construction industry
- kjag55
- Mar 31
- 3 min read
Húsasmiðjan has implemented a variety of circular solutions to minimize waste and ensure that the value of raw materials is used in the best possible way. The company's operations generate various materials, and the goal is to keep them in circulation with responsible use. By promoting reuse and recycling, waste and environmental impact are reduced. In the fall of 2022, Húsasmiðjan began a systematic collaboration with other companies to find solutions that reduce waste. The company had worked on environmental issues before, but with increased cooperation and analysis of the largest environmental impacts, it has been able to implement even better processes and deliver good results. The amount of waste has decreased by 25% since 2022.
Recycling of foam plastic
One solution is reusing white expanded polystyrene (EPS) from products sold at Húsasmiðjan. The plastic is sent to Tempra in Hafnarfjörður, where it is used to produce insulation panels. Húsasmiðjan collects the expanded plastic in bags and uses space in truck trips to deliver it to Tempra. The project began at the end of 2022 and has grown since then; in 2023, 40 m³ of pure expanded plastic were recycled and thus avoided its landfilling. Expanded plastic is 100% recyclable, and the equipment that produces the insulation panels delivers maximum utilization of raw materials and only uses water, steam and air in production.
The construction of Húsasmiðjan's new office building in Selfoss also revealed an opportunity to use EPS in a new way. The steel frame of the building was protected with coloured EPS that would otherwise have gone to landfill but was instead used as foundation insulation in a new building nearby, saving 45 m³ of plastic.
→ More about Recycling EPS can be found here.
Plastic film recycling
Coloured plastic film is widely used to protect imported timber, prefabricated houses, pipes, and other raw materials. At the end of 2022, Húsasmiðjan began collaborating with Pure North to recycle it. The plastic is washed, crushed, and processed into raw materials for plumbing, cans, and other industrial products. This arrangement significantly reduces climate impact, as domestic recycling produces 82% fewer emissions than if the plastic were shipped to Europe for processing.
In 2023, Húsasmiðjan returned 450 kg of plastic film to Pure North, thereby reducing emissions by 680 kg of CO₂_eq. Further collection is expected in the coming year, as plastic film is now sorted separately at the company's facilities.
Reuse of timber
Timber is one of Húsasmiðjan's main imports, but packaging timber, single-use pallets and warped and damaged timber have mostly ended up as waste. In 2023, the company began working with the architectural firm Lendager to analyze the amount of timber that is considered unusable and find ways to utilize it. The first project was to use this timber in the cladding of the Community Housing at Háteigsvegur 59. The timber was treated using the Japanese Shou Sugi Ban method, which increases its durability and fire and weather resistance. The choice of cladding resulted in 2.4 t CO₂_eq savings instead of traditional aluminium cladding that is commonly used in the construction industry in this country.

Obstacles in this project included finding space for the collection, improving work processes, and ensuring that timber sorting was efficient and without delays.
This collaboration shows how value can be created from timber or other materials that were previously considered of little value.
Solutions have also been worked on for other types of building materials, such as panels on the outside of imported doors, which are often considered unusable due to their size but are otherwise fully usable.
Other circular solutions
Regular maintenance of tools in the Húsasmiðjan tool rental to ensure their longevity.
Reuse of cardboard boxes from freight transport in the company's online sales.
Sale of chipboard from Koskisen, which uses 100% recycled raw materials and wood binders instead of traditional glue.
An outlet store selling materials that do not meet traditional requirements, such as tiles with little left, plasterboard with minor damage, and timber in sizes other than those usually sold.
These projects show how a circular economy can be implemented in the construction industry through targeted actions and cooperation with other companies. Employee awareness and improvements in work processes play a key role in ensuring continued success in the field of sustainability.
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