Sjølingstad Woollen Mill was established by August Hoven in 1894, not far from Mandal in Vest-Agder. Hoven considered several alternatives for the location, before deciding to buy the rights to utilise power generated from the stream starting at Stuevann, a lake just above the site where the plant was built ¹. Workshops for spinning, weaving, dyeing and finishing were in place from the very beginning. The mill at Sjølingstad soon became one of the largest companies in the Mandal region, and employed at its peak around 90 people ². A small village grew around the factory, with a school, shop, post office and assembly hall.

The mill produced yarns, blankets and fabrics in wool, primarily with fleece bought from local farmers and from the wool auction in Stavanger, but also with yarn spun abroad. The products were sold throughout southern Norway ³. The company grew steadily until the second half of the 1960s, with some difficult years in the 1930s. The first years after World War II were very good for business, as for Norwegian commerce in general. But during the 1960s and '70s, Sjølingstad failed to keep up with technological developments. As a consequence, the company became increasingly less profitable and production ended in 1984, after 90 years of business.

What normally takes place when a business goes bankrupt is that anything of value is sold for funds to be returned to the bankruptcy estate. At Sjølingstad this did not happen, probably because the production equipment was so outdated that it had no commercial value. In 1985 idealists in the local community, including Carl Frederik Thorsager and Annemor Sundbø, saw the opportunity to establish a museum at Sjølingstad ⁴. A foundation was created and the idea was put into practice. It was important that not only should the machines be preserved, but the knowledge of operating them as well. Production still includes everything from the washing of wool to spinning, weaving, dyeing and finishing. The model of combining production from the old machines by qualified staff with dissemination of history and knowledge is today what distinguishes Sjølingstad from other industrial history museums.

This model is also reflected in the economy of the museum. The operation is partly financed with income from a smaller production of blankets, yarns and fabrics for the Norwegian national costume, and partly with government support as a museum, now as part of the Vest-Agder-Museet. The operation at Sjølingstad is interesting because it relates both to the demands of production and the protection and development of its role as a museum.