Icelandic director-producers Fridrik Thor Fridriksson and Baltasar Kormakur, who has Jar City in Toronto, have joined forces to set up a new production shingle, Thordarhofdi Film Productions, currently readying two features for its first slate.

'Thordarhofdi means 'the mountain between us' - we both have farms in northern Iceland,' explained Fridriksson, who dismantled his production house, the Icelandic Film Corporation, two years ago.

Still in operation, Kormakur's Blueeyes Productions most recently backed his own Jar City, which went on to win five national film awards and sell over 70,000 tickets domestically - more than a fourth of the country's population.

Thordarhofdi's first feature which Fridriksson and Kormakur will co-produce is Oskar Jonasson's $2m (Euros 1.5m) Rotterdam-Reykjavik, a drama-comedy about smugglers operating from the Netherlands, shooting from October with Kormakur in the lead. Jonasson's former pictures include Remote Control and Pearls and Swine.

Fridriksson will direct the $2m (Euros 1.5m) Mama Go-Go, 'a crazy comedy depicting the relationship between a son and her mother, who suffers from Alzheimer's.' Based on his own life experiences, Fridriksson scripted the film which will star Hilmir Snær Gudnason and Kristbjorg Keld. Principal photography is scheduled for March.

Before his first feature since 2004, he will film a $1m (Euros 700,000) full-length documentary about autistic children which he will present in Berlin. 'I was contacted by the mother of an autistic child who wanted me to show what autism really is - and it is not at all like in Rain Man,' said Fridriksson, who reseached the project for six months.