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The handmade paper is traditionally manufactured from cotton and flax. Due to its quality and extraordinary durability it is used by artists for their creations, as well as for special personal and company correspondence, presents, and also in the branch of bibliophilism, publishing and antiquity restoring.

The handmade paper mill was founded at the end of the 16th century by Jan the younger of Žerotín. The mill is first mentioned in an agreement dated 25 March 1596. During the centuries the mill passed from hand to hand, and many skilled master craftsmen have worked in the factory. Since 2006 the factory has been operated by the company Ruční papírna Velké Losiny, a.s.

Since the mid 1970s the factory has been under reconstruction. From the view of lasting more than four hundred years of handmade paper production, this unique facility and technical monument has remained unrivalled in central Europe. In 2002, the Czech government declared the paper mill a national cultural monument. The factory is on the list of applicants for status as a UNESCO World Cultural Heritage Site.

The specialised Museum of Paper, now an inseparable part of the Handmade Paper Mill in Velké Losiny, was established in 1987. Its permanent expositions are focused on the historic development and traditions of paper manufacturing and with the beginnings of modern industrial paper production in Czech lands. Due to its specialisation towards the history of manufactory paper production, it is the only museum of this type in the Czech Republic. The factory comprises a gallery with presentations of artistic work connected with handmade paper or with the region. More detailed information about the museum, the gallery, opening hours and current events and exhibitions can be found here.