On 6 March 1849, Josef Riedel bought a new glassworks, with his own money, from Ignaz Friedrich, a textile entrepreneur and glass trader. The new glassworks was based in Polaun near Klein Iser and had a wood-burning furnace. It was perfectly located: in 1847, a main road was laid through the Giant Mountains between Reichenberg, Gablonz and Trautenau. This road finally created a connection between Iser and the Giant Mountains with a central Bohemian road network. Under Josef's contract, Friedrich was unable to build a new glass factory for ten years; he agreed to purchase glass solely from Josef; and gave Josef the first right of refusal on any eventual sale of lands in the vicinity of the foundry.