In 1842 Carl Knoll, a Karlovy Vary businessman, bought the land and a shop for the production of tile pipes in Rybáře by the Rolava River, where he established a kaolin washing mill for the porcelain factories in Karlovy Vary and its surroundings. His business was successful and, over the following four years, he also built a small porcelain factory with two kilns which produced cups and pots. After twenty years there was now a prosperous porcelain factory with four circular kilns at the fork in Rybáře. Spa cups, figure porcelain figures and sets for the Karlovy Vary hotels were produced there. The products were of a good clay quality; however, their art level was no better than the current average of that time.
At the time of its boom, 300 - 320 people were employed there; at the time of the economic crisis in 1938 this had dropped to190 employees. After the death of Carl Knoll in 1868 the enterprise was taken over by his sons Adolf, Karel and Ludvík who extended production and, in addition to utility porcelain, they produced luxury colourful and painted goods.
The factory also included a Japanese style porcelain pavilion standing on the island in the present day Rolava Lido (which was definitely stolen away and destroyed in 1945), and the sample room displaying the products. The sample room has stood in the same place up to the present day and has undergone many reconstructions (which have led to worse results) and nowadays it is in a very dilapidated condition.
On 1 January 1946 the porcelain factory was nationalized and integrated into the První česká továrna na porcelán Karlovy Vary (First Czech Porcelain Factory Karlovy Vary) state enterprise. In 1949 - 1951 the "Knoll Factory" was excluded from this state enterprise due to obsolescence and unprofitability, and the buildings began to be utilized as storage space until 1990.