The main factory building was erected in 1909. Until 1919, the factory functioned as cloth mill. It was then converted to cardboard production by J. Smith’s Cardboard Factory, Ltd. This company was established in 1916 and had bought the cloth mill the same year. In 1920, the actual cardboard production commenced under the management of director Janus Smith and works manager Axel Sjøberg. They both had experience from other paper and cardboard factories. Some of the machines in the factory had been moved from other cardboard factories, owned by Janus Smith, but the majority came from Copenhagen, where Axel Sjøberg had been employed.

When Janus Smith died in 1926, his son Oscar Smith took over the management of the factory. During the following 15 years, the production was increased considerably, and the clientele expanded so that their customers now also came from abroad. For a period of 10 years during the 1940s and 1950s, the factory had its largest number of employees ever, and it was the period where the most considerable renewal of the production facilities so far took place. The Smith family kept the majority of the shares in the factory up until 1976. Since then, the factory has changed hands 3 times, but the factory environment is more or less identical to what it was in the 1950s.

On 5 January 1987, the working factory museum was inaugurated, and the production started, exactly like in the old days.