The sulfite factory was in 1910 supplemented with a sulfate factory.
But already by 1916 the Gravendal Industries were overtaken by Hellefors AB (by this time a major player in central Sweden), which by that became the owner of the factories in Fredriksberg.
However, financial problems made Hellefors forced to be taken over by the government, and the industries in Fredriksberg became state owned.

During the 1930s and '40s the factories returned to private ownership and were transformed into a full scale paper mill.
As a result of the Swedish neutrality in World War II  and the following lack of foreign competition and the Swedish economic boom during the 1940s and '50s the paper mill in Fredriksberg got a stronger economic position.
This time could in many ways be described as Fredriksberg's industrial golden age.
The town's population culminated during the epoch with about 2,000 inhabitants, and the economy was good.

Fredriksberg had already since 1875 a railway connection with Hörken on Bergslagsbanan (the so-called Säfsbanan), but came from 1931 (when a line to Hällefors was opened) to 1940 (when the line to Hörken was discontinued) to be the centre of the narrow gauge 802 mm (2 ft 7.6 in) railway network between Hällefors, Hörken and Neva on Inlandsbanan.
The sulfite factory was in 1910 supplemented with a sulfate factory. But already by 1916 the Gravendal Industries were overtaken by Hellefors AB (by this time a major player in central Sweden), which by that became the owner of the factories in Fredriksberg. However, financial problems made Hellefors forced to be taken over by the government, and the industries in Fredriksberg became state owned.
During the 1930s and '40s the factories returned to private ownership and were transformed into a full scale paper mill. As a result of the Swedish neutrality in World War II  and the following lack of foreign competition and the Swedish economic boom during the 1940s and '50s the paper mill in Fredriksberg got a stronger economic position. This time could in many ways be described as Fredriksberg's industrial golden age. The town's population culminated during the epoch with about 2,000 inhabitants, and the economy was good.
Fredriksberg had already since 1875 a railway connection with Hörken on Bergslagsbanan (the so-called Säfsbanan), but came from 1931 (when a line to Hällefors was opened) to 1940 (when the line to Hörken was discontinued) to be the centre of the narrow gauge 802 mm (2 ft 7.6 in) railway network between Hällefors, Hörken and Neva on Inlandsbanan.
Fredriksberg, Sweden