Carl-Johann Gottlob Thieme started in 1864 in Dresden a porcelain and antique shop. He was also running a porcelain painting business. In September 1872 he established a porcelain factory named Sächsische Porzellan-Fabrik Carl Thieme zu Potschappel.
Carl Thieme died in 1888. The business was taken over in 1896 by his talented son in law, Karl August Kuntsch. Kuntsch was a modeler who started a tradition of flower decorations traditional for Dresden style porcelain items. He died in 1920. His widow and two sons (Carl August and Emil Alfred)run the company in next years
After the WWII in 1951 Emil Kuntsch was pushed out of the company and the state gradually increased its involvement in next years. 1972 the company was fully nationalized and till 1990 operated as VEB Sächsische Porzellan-Manufaktur Dresden.
In 1991 the company was reprivatized.