The factory in Ostrov was established by Josef Pfeiffer and Ludvík Löwenstein in 1873. The factory premises consisted of three circular kilns and a muffle kiln, a porcelain mass mill, a jiggering shop, a paint-room and a kiln for firing cobalt décors. Average-quality porcelain was produced there; its shapes and décors were obviously copied.
In 1900 the factory management of the factory was assumed by the sons of the founder’s. The arrival of the new generation meant a significant change. The new production programme focused on quality decorated porcelain, both with standard and tailor-made décor, hotel and decorative porcelain, and later boiling and chemical porcelain, along with porcelain sculptures. In 1900 the porcelain factory had 132 employees. The quality of porcelain from Ostrov is documented by many honourable mentions at international exhibitions in the 1920s. In the 1930s, the export of Ostrov porcelain beyond Germany and Czechoslovakia still represented 54 percent of all deliveries. Products were exported to the majority of European countries, the USA, Southern America, Turkey, India and Egypt. The production of porcelain was affected by the economic crisis of the 1930s and as a result, standard utility porcelain was produced more.
Further changes came as a result of the growing Nazi movement in neighbouring Germany and, consequently, the Second World War. On the basis of the Aryanization Decree, the Jewish owners of the factory had to sell their shares. The war significantly decreased the level of production in Ostrov. The factory produced porcelain ware for bombsites, the army, military hospitals and dormitories. Export almost ceased although projects for the radical modernization of the operation which were prepared for the post-war period remained unused.
In 1945 the factory was nationalized and its operation moved to the "Concordia" porcelain factory in Lesov. Four years later the porcelain factory in Ostrov was shut down. The premises of the porcelain factory then fell into the hands of one of branches of the uranium industry as the Plant for Mechanization and Automation.