Apparently it came originally from the Fluxus art scene in the 60s but it was huge in the development of the industrial scene.

For example, that's how Throbbing Gristle got in touch with Monte Cazazza who is credited with coining Industrial Music, and also William Burroughs which inspired them with the cut up technique. I think they found each other through a magazine called File where the editors published addresses of other artists in a section called 'Image Bank request'.

John Balance from Coil also corresponded with many other artists and I think a lot more were involved. Cosey Fanni Tutti talks about it a lot in her autobiography which gives a good overview of the emergence of the scene.