Around 1850 some entrepreneurial personalities founded a mechanical flax spinning mill. The main figure was the textile industrialist Josef Dierzer, Ritter von Traunthal, from Linz who was regarded as an industrial pioneer at that time and who was specialised in building and operating textile factories. The other founders were also men who played an important role in the economic and public life of Upper Austria. These included Anton Georg Pummerer, Dr. Hans Ladinser, Josef Hartmayr and Anton Hofstätter.
The Lambach Flax Spinning Mill in Stadl-Paura was formed as a public limited company right from the outset and was also the first stock corporation to be founded in Upper Austria. On 23 March 1850 at the first annual general meeting of the newly founded shareholder association a resolution was made to construct a machine flax spinning mill. It was to be the largest of its kind at this time in the Austrian-Hungarian monarchy.

The name of the company was only determined later as the "K.u.K. privilegierter Lambacher Flachsspinnerei" (The Imperial and Royal Privileged Lambach Flax Spinning Mill). The factory was built in 1852 and production started in November 1853.

Today's modern management style is built on the company's more than 100 year old tradition. In our company and in our subsidiaries linen yarns are manufactured to a traditionally high quality on the latest machines with an enormous level of personal commitment.