The first pulp mill along Tistaelva was Søndre Skåningsfossen Træsliberi, established by Christian Anker in 1867. This operated profitably and was able to capitalize on much of the otherwise low-value refuse from the sawmills. Saugsbrugforeningen started considering the possibility of building its own pulp mill in 1872. Declining pulp prices from 1874 caused the company to shelve the plans for the meantime. The mechanical pulp mill opened in 1889 with five grinders and annual production of 11,000 tonnes, employing sixty people. The pulp mill was the company's until then largest investment, financed through a loan of 1.25 million Norwegian krone.