VEB Linoleumwerk Kohlmühle (Likolit) was established in 1902/03 from a branch of the Sebnitz paper factory. Oilcloth and printed linoleum were later produced here under the name LIKOLIT. In 1906, Eduard Keffel AG Tannenbergsthal acquired the plant and began producing oilcloths and artificial leather from 1907. In 1921 the production of table and printing linoleum began. In 1931 the Planitz leather cardboard factory took over the plant in Kohlmühle. During the Second World War, the Junkers company from Dessau used the plant in 1944 as a replenishment warehouse. A year later, the Soviet military administration began demoting the machines and systems. In 1948 the company became public property and production began to be rebuilt with old machines from Tannenbergsthal. In 1952 the company operated under the name VEB Linoleumwerk Kohlmühle, and in 1967 the production of PVC floor coverings began. The last renaming took place after the political change, in 1991 the production was named Likolit GmbH Kohlmühle.
On November 25, 2013, the insolvency proceedings for Likolit Linoleumwerk Kohlmühle GmbH were opened.
In May 2015, around five cubic meters of dioctyl phthalate flowed from the linoleum plant into the Sebnitz via the sewer system. Trout farm employees discovered the oily film on the salmon stream into which the Sebnitz flows. The fire department intercepted the chemical and sealed a leak in one of the factory's tanks. Why this leak struck is unclear. On September 21, 2015, walkers triggered a fire brigade when they discovered small yellow containers with hazard symbols in the bushes of the plant while they were “escaping”. Since Likolit used to use radioactive material for some test and measurement procedures, the armed forces suspected residual stocks and set up a restricted area. The containers were empty, but samples showed that they had come into contact with contaminated material. They were taken away in a special container.