The Dixon family bought the paper mill to the northwest of the village in 1871 and it became a flourishing business, being one of the first to use wood pulp to produce paper instead of rags. The mill specialised in tissues, making the Dixcel brand for many years. Wood pulp for Dixon's paper mill was imported from the Toppila pulp mill (Toppila Oy) in Oulu, Finland from 1931–1985. The Dixons signed an agreement with the railway company to provide a siding for the works to transport raw materials and the finished product. The paper mill was closed in 2007 leaving only converting lines operational.
The Oughtibridge Mill came into SCA, a leading global hygiene and forest products company, ownership in 2012 as part of a wider acquisition of tissue operations across Europe from another company.
The site had already ceased operations as a paper mill in 2007, five years before it was acquired by SCA, and since then its main function had been the conversion of rolls of paper into commercial products. The closure of the site was announced in 2014 following consultation with the workforce and all activity ceased on the estate early in 2015.
The site is now for sale with the potential to be used for new homes.