The history of the Norwegian textile industry dates back to the 1840s, when the first Norwegian textile factories were established along the Akerselva river in Oslo and in Ytre Arna outside Bergen.
The industry expanded significantly throughout the 19th century; in Bergen alone, there have been more than 100 textile factories.
The factories' salesmen traveled across the country to market products and secure customers.
In this way, Norwegian factories maintained close contact with the market, allowing them to produce goods to order and avoid overproduction.
Salhus Tricotagefabrik was one of the factories that supplied essential institutions like the military, prisons, and hospitals with textiles.
Shoddy factories received scraps from other textile plants, which were shredded and repurposed into items like blankets and furniture padding.
Norway was self-sufficient in clothing and had established methods for utilizing textile waste. This is an early example of what we today call a circular economy.
During World War II, production at Norwegian factories was limited. Shortly after the war, many new factories were established to meet the great demand for both jobs and clothing. However, by the late 1950s, changes occurred that would have major consequences for the industry.
While development had been very positive until then, rising wages made textiles more expensive to produce, which in turn increased retail prices.
Trade tariffs were gradually reduced, and Norwegian products were outcompeted by low-cost clothing from Asia.
Over the following decades, one factory after another was forced to close.
In 1989, Salhus Tricotagefabrik shut its doors after 130 years of operation.
But – what is the status of the circular economy in the Norwegian textile industry today?
Although most textile production now takes place abroad, there are many positive developments within the Norwegian industry.
The Norwegian Armed Forces have chosen to invest in local production. In 2025, they signed a billion-kroner contract with the Janus Factory outside Bergen to supply wool underwear for several years to come.
New EU regulations regarding the handling of textile waste are driving the search for alternative solutions. One example is Norsk Tekstilgjenvinning in Sandefjord, which has invested in machinery that recycles used textiles into new yarn.
Increased interest in Norwegian wool and handcrafts means that Norwegian yarn producers are currently very busy.