Icelandic fishing giant Visir, now a subsidiary of Sildarvinnslan, is halting processing at its plant in Grindavik, Iceland, amid fears of an imminent volcanic eruption.

The group said that while the situation does not affect the operation of the fishery, fish processing in Grindavik could be impacted.

"Managers are working to respond to the situation and will make decisions according to developments," it said.