The plant was founded in 1964–1965. It became one of the key industrial enterprises of Charentsavan (then known as Lusavan), alongside the Machine Tool Plant and the Centrolit Foundry.

The enterprise specialized in the production of a wide range of metal-cutting tools. At that time, the plant was equipped with state-of-the-art machinery supplied by leading international manufacturers such as HECKERT, Reform, Carl Zeiss, and Klingelnberg.

During the 1970s and 1980s, Charentsavan was known as a “city of factories.” The city’s major industrial enterprises—including the Tool-Making Plant, the Machine Tool Plant, and Centrolit—employed between 1,000 and 3,000 workers each.

By the late 1980s, the city’s population had reached its peak of approximately 33,000 residents. Since the industrial zone occupied up to 70% of the city’s territory and the city itself had been built primarily for industrial workers, the overwhelming majority of the adult population was employed in manufacturing.

For example, the neighboring Machine Tool Plant employed more than 1,000 workers during its peak years. The Tool-Making Plant, being a high-technology enterprise serving the entire Soviet Union, maintained a workforce of approximately 2,100–2,400 employees.