La Encartada S.A. was a textile factory founded in 1892 that was active for exactly 100 years. The share capital was provided by five indianos (emigrants from Bizkaia who had made their fortunes in Mexico) including three from Balmaseda. The company was dedicated to wool working and manufacturing a variety of items, from berets (its top product) to blankets and cloth, as well as gloves, scarves, hats, balaclavas and, of course, skeins and balls. Around the factory a small working class neighbourhood developed with homes for families who worked there and the chapel/school. The gardens and director’s house also once stood in the same complex, though they are no longer standing.

La Encartada Factory Museum has been an industrial museum managed by the Provincial Council of Bizkaia since 2007. Its evocative buildings, machinery and large workers’ settlement transport visitors back to the start of the industrial revolution on the Iberian Peninsula. In 2019, its excellent industrial heritage was recognised by the tourism network and brand ERIH (European Route of Industrial Heritage), which classified the museum as an Anchor Point, demonstrating its exceptional value in Europe.
One of the things the museum is doing is mechanically and functionally restoring the factory's machinery.
On certain dates over the course of the year, more than a dozen machines can be seen in operation. Additionally, La Encartada Factory Museum organises a variety of activities for all audiences and offers tours to learn about this unique place.