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Alvøen is one of the oldest industrial places in Norway. As early as the 1620s a gunpowder mill was built here. The place itself was well situated for industrial activity, lying only 100 m from the waterfall, which provided power for the mill, and a good harbour wherefrom the products were shipped. The success of the gun-powder mill varied in the 1600s and 1700s, but what made Alvøen best known was its paper production.
Valestrand became a centre for the tanning industry in Osterøy; one of the old crafts that has developed into a local industry with many places of work. From the 1870s ever more ventures were started. Many of the large sea houses we see today around the bay have been places for tanning and leather enterprises.
The first finds of pyrite at Litlabø in Stord came to light in 1864. Forty years later sulphuric ore was mined from an open mine. From 1874 to 1880 it was used for dynamite production. That came to a sudden end when the factory exploded and three people died.
Today Tyssedal appears like a classical industrial community, a picture of modern Norway from the turn of the former century until today. A/S Tyssefaldene was established in 1906, and on 1 May 1908 Tyssedal power station was put into operation. The work on the first stage of the facility was completed in a short time, with a work force of 500 men. They built water tunnels, regulation reservoirs, power station, penstocks, harbour, cableways, office buildings, houses and 6 km of power lines in the wild mountains above Odda to provide the new melting plant with power.