Tofte has a long industrial history that started in 1896 when Anthon B. Nielsen bought Tofte farm. Nielsen, a well-known businessman and author under the pseudonym Elias Kræmmer, started the construction of a cellulose factory. After several years of production, he sold out and established a new factory in Sagene. The Tofte factory operated for 117 years but was closed by the Swedish forestry group Södra in 2013, following a conflict with the Norwegian authorities and trade unions, which resulted in 275 employees losing their jobs.

The factory was then dismantled and the equipment shipped to Vietnam. In line with the factory's development, the surrounding community also grew, with the construction of workers' housing for the construction workers and new employees, including Swedish workers. Many of the old buildings in Tofte have now disappeared, but "Murgårda", officially "Skogveien", is a street with buildings inspired by English architecture, which were built in 1910. The architect, who was educated in England, also designed the "Old People's House", which became a gathering point for the workers.

A cooperation agreement arose between the workers and the factory management to build Folkets Hus, which later became the site for the formation of the Toftevering trade union.

In 2013, Statkraft took over the area from Södra, with plans to develop the production of advanced biofuels from forest raw materials. They have established a demonstration plant, and if successful, it could lead to full-scale production and new jobs in the future, suggesting that Tofte still has potential for industrial activity.