From faroeislands.dk:
Skali (also called Skala) lies on Skalafjordur-inlet’s west-side.
In Skala lies the largest shipyard of the Faroe Islands. Many of the ships in the Faeroese fleet are built here.
As not many new ships are built on the Faroe Islands these years the shipyard is mostly doing repairs now.
In addition to ships from the Faeroese fleet also Russian ships are visiting the shipyard in Skala to get overhauled.