In 1784, Dripsey Paper Mills was started by Batt Sullivan, and under him became one of the most famous in Ireland.  Batt Sullivan developed papermaking methods he had studied in France, as they were considered to be the most advanced in Europe.  Dripsey became known for its fine quality paper, and were contracted to produce Treasury Bills and Bank Notes for the Bank of England.

In 1812, the mill covered six acres of ground – three of the acres were of buildings, passages and houses, and the other three were taken up by the mill pond.  The number employed in the mills was 400.  Many of these would have been carters of rags, which was the raw material.  Rags were brought from the quays in Cork, having been imported from London, Liverpool and Belfast.  Many of the mill workers lived in a small village which grew up around the mill, called Blackpool, which stretched for about three-quarters of a mile and which consisted of sixty mud cabins and some stone houses.  The remains of the stones can still be seen.

In July 1823, it was reported that the valuable machinery, including some which had just arrived as part of plans to extend the business, was destroyed by a band of ruffians, consisting of 8 or 10 persons, supposed to have proceeded from the city.  At that time, the Paper Mills were owned by the Magney Brothers from England.

After many years of being bought and sold, the paper mills were finally closed in 1864.

However, many years later, during World War I, Peggy, a daughter of the Bowen-Colthurst family, who at that time lived in Dripsey Castle, built a cheese factory in some of the buildings of the old paper mills and this was closed in 1921.