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At the bottom of Karkonosze Mountains there were couple of houses which formed settlement Mysłakowice. People of Mysłakowice made a living of agriculture, spinning and weaving. Owners of the settlement were changing frequently. At the beginning there were two families: in XVI century Mysłakowice belonged to the family von Zeidlitz, line of descent of Affe, and in XVII century - to the family von Reibnitz. Then the settlement was inherited by cousin of Maksymilian von Reibnitz - named Karol Fryderyk von Kottwitz. The history of Mysłakowice begins in 1816, when it was sold by the family von Kalckreuth to the August Niethardt von Gneisenau. At a certain time Jan Fleidel - leader and father of Tirol citizens described hard situation of his fellow citizens. This complaint was addressed to the king in Berlin. Mr Jan Fleidel received assurance of immediate help. Countess Reden intervened and as a result refugees from Tirol were settled in Mysłakowice. This happened in year 1837. Future showed that refugees from Tirol were able to collect better crops from assigned grounds than Silesian weavers who were becoming poorer and poorer. Since there were additional useless grounds, government decided to organize mechanical spinning mill. Minister Rother undertook this task.
On the 28th of February, 1839, Mr Rother passed official order to King's General Director of Sea Trade Society to open special account named : "Establishing of Linen Mechanical Spinning Mill in the Mountains of Silesia". On the 12ve of February, 1839 Mr Hamann (constructor) received order to prepare projects. The subject of the order was to adapt existing mansion to required needs. Mr Rufer (Commercial Advisor) was to check the projects. They decided to make new buildings for spinning department. Large difference of ground levels allowed to install water weal of 34 feet size in arm of the river Łomnica. The weal was able to generate energy at level of 30 horse power.
Yet in 1939 minister issued an order to build mechanical spinners in company in Wrocław. Mr Ferdynand Wilhelm Kaselowsky - graduate of king's industrial institute - was planned to be manager of spinning mill. He went to England, France and Belgium to gain more knowledge to take this post. Startup of the production was planned on the 1st of June, 1843. However completion of spinning mill house and rebuilding of ship stable took more time then expected. Finally at the end of 1843 it was possible to set up machines ordered in Wroclaw and England. In May 1844 the machines were for the first time burnt in and in June 1844 first kilograms of yarn were produced .
In October 1844 there were 1840 spindles running, in November - 2080, in December - 2344 and in the year 1864 - 13300. Linen fabrics were produced in 4 widths for different purposes: for kitchen towels and other domestic reasons, delicate grey, raw denim, striped denim, sails, ordinary towels. In 1864 fire destroyed 4 halls of spinning mill; however it was rebuild in short time forming nearly today's look.
In 1867 on world's industrial exhibition in Paris, Linen Mills from Mysłakowice received golden medal for its exposed products. In 1872 the mill was purchased by Robert Thode bank. There were 97 looms working at that time. In 1874 new weaving department started production on 260 looms (mechanical). In 1882 railway connection between Jelenia Góra and Mysłakowice was opened; thus raw material supply and transport of ready products were simplified. In 1883 rebuilt bleaching and finishing departments began production. In 1889 sewing department was run.
In June 1894 production stopped for 14 days because of the flood. In 1909 - 4 houses were built for workers. During First World War the company made fabrics for military purposes: for towels, sails, denims, planes. Years 1927 - 1928 were the time of crisis. In 1929 the company noted loss of 425 thousand marks. The number of linen mills in Silesia decreased from 22 to 11. In 1941 two hundred prisoners were forced to work in the mill. In 1943 - additional three hundred. In 1943 and 1944 military production was started: parts of anti-aircraft cannons, electrical devices and others were made and then completed in Podgórzyn.
On he 22nd of May 1945 Red Army liberated Mysłakowice, prisoners of war were freed as well. On the 1st of November 1945 the mill was taken over by the Poles and the first team of workers named it "Orzeł". In year 1961 on Poznań Fars for the first time Orzel's fabrics for garments were shown . In 1966, 80% of production was sold to the U.S.A., England, Scandinavia, Germany and Australia. The employment amounted to 2680 people then.
In 70's and 80's the company was directed by state association. They coordinated sales of products and imposed production plans of hundreds of thousands metres of fabrics for table clothes, decorative purposes, napkins, bed sheets for hospitals and other.
In 1995 r. "Orzeł" entered National Investment Fund, on the 1st of March 1995 it was transformed from state enterprise into sole trader of the State Treasury. On the 24th of July, 1998 Orzel's shares were noted for the first time on Ceto in Warsaw.
15 lutego 2007r. On the 15th February 2007 the company moved its funds to Stock Exchange in Warsaw.