Jarnes etui- og æskefabrik was founded in 1961, in Østergade in Hjallerup, by Palle Jarne Clausen. The idea of founding the company came from Palle's mother, who was a jeweller in the town at the time. Palle's mother had difficulty getting boxes delivered for her jewellery, so Palle started producing boxes for her at his home address in Østergade. Space quickly ran out as Palle began producing boxes for the nearby area, so moving the business soon became a necessity.

The administration building in Hjallerup, 1986

By 1985, the Stagsted factory had been expanded so many times that further expansion was no longer an option. Even though the factory had reached 3300 m², more space was still needed due to a strong expansion in production. So Palle had to look for another location nearby. In late 1986, he found the perfect place - the old dairy in the centre of Hjallerup town. The building was modernised and expanded, and then the administration and offices, as well as part of the warehouse, were moved here. This freed up space at the Stagsted factory to realise Palle's ambition of more modern production.

The factory at Håndværkervej, 1992

The need to expand the core business, from focusing solely on a standard range to also producing customised products, increased considerably over time. Jarnes therefore expanded again in the early 1990s with the construction of an 8,000 m² building on Håndværkervej on the outskirts of Hjallerup. Until the end of the 1990s, production took place in both the old and the new building, but to simplify logistics, it was decided to convert the factory in Stagsted into a warehouse and move production and administration to Håndværkervej.