The local fire marshal, Kristján Einarsson, told mbl.is that the fire is believed to have been caused by an electrical fault.
There are a large number of pipes stored in the area surrounding the storage facilities that caught fire.

“The fire could easily have spread to the pipes which would have led to the factory itself. The equipment alone is worth ISK 100,000,000 (EUR and USD) and in the worst case scenario the damages could have amounted to ISK 2,000,000,000 (EUR and USD),” Kristján told mbl.is. The damages have not yet been evaluated but Kristján estimates that the cost might be in vicinity of 60 to 100 million ISK.

It was fortune in the midst of misfortune that one of the fire fighters was also an employee of Set Pipes, and he knew the most efficient way to remove the pipes placed near the burning storage space.

The pipes were placed in-between the buildings and the fire could most certainly have spread to the factory area.

The fire also affected 800 Bar, a local weekend hangout, and the bar’s interior was cleared yesterday. The police department monitored the area last night.

It was fortunate that no employees were in the storage area when the fire started. Employees noticed one of the engines stopped operating at approximately 12 pm. They became aware of the fire 45 minutes later.
 
All possible causes will be investigated but it appears that electrical failure was the cause, mbl.is reports.

JB