Sigurður Hólm Sigurðsson, former captain, attended a seminar called  "Launch it - Business-idea to actuality" at Marketing- and employment institution (MOA) in Reykjanesbær, that was organized by the educational department of IceTec, the Icelandic technological R&D and educational institution. Afterwards he was offered to buy a formula to an environmentally friendly tar-remover, which was developed at IceTec with a grant from the Icelandic Research counsil. An experimental manufacture started in may 1998 in 60 m2 tenements in Grófin 18, Keflavík. In august 14th 1998 the company S. Hólm ehf was formally established. The construction of a new factory started in july 1999 in Stapabraut 3, Njarðvík. The factory was put in use in january 21st 2000. The year 2004 the company name was changed to UNDRI ehf.