It was at one time the largest employer in Gothenburg and produced some of the most powerful ships in the Swedish Navy, as well as the first modern oil tanker.

There is evidence that there was "a loading place (...) a loading dock with a storage bed of ship repair beams" (Swedish: en lastageplats (...) en lastagebrygga med upphalningsbädd av bjälkar för fartygsreparation) in 1844 and the first ship known to have been built at the yard, the brig Aurora, was launched in 1848, but the history of the company dates from the foundation of a joint stock company called the Lindholmens Varvs- och Fabriksaktiebolag in 1853.

One of the most important vessels was Zoroaster, constructed for Branobel to designs of Ludvig Nobel, the first modern oil tanker.

[3] Economic factors caused Motala Verksted to go bankrupt in 1891 and the shipyard was sold for SEK 820,000 to a consortium of companies and individuals.

The company attempted to consolidate its operations to save money, but the challenge proved too difficult and in 1917, Lindholemen was bought out by Gothenburg Bank.

[7] However, the business limited itself to constructing steam-powered vessels and so was incapable of accessing the emerging motor ship market.