Öland is the second largest island in Sweden and is located in the Baltic Sea, just off the coast of Småland in the south of the country. The company was founded in 1998 by Ann Linderhjelm, who, upon learning that most Swedish sheep farmers simply threw away or burnt their raw wool clippings, decided that she needed to find a use for this beautiful wool. The company of Ullcentrum was born out of this desire, and by prioritising product development and design Ann has been able to create a market for the wool and thus to help support local farmers. Ullcentrum's vision is to work in an environmentally friendly and organically sound manner, using clean, traditional and natural materials. The production is on a small scale and the company strives to use as few resources as possible and to provide good working conditions for its employees.

The wool collected comes mostly from the Gotland sheep breed, which originates on the nearby island of Gotland, Sweden's largest. The dense and lustrous fleece of this grey sheep is particularly fine and can be all shades of grey, from silver through to almost black. Ullcentrum's coloured yarns are overdyed on both white and varying shades of grey, thus creating a unique heathered appearance.