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On 10 February 1872, Rowland Winn of Appleby Hall concluded an agreement with a group of businessmen who formed the Lincolnshire Iron Smelting Co Ltd. This firm was allowed to build two furnaces on a site south of what became Dawes Lane, between Scunthorpe and the Trent Iron Works. The furnaces were seventy feet high, with bosh diameters of twenty feet. At first both were open-topped, but later one was fitted with a bell. Winn had previously made agreements to exploit the ironstone in the area with Trent Iron Works, Frodingham Iron Co and North Lincolnshire Iron Works.
1873 Deliveries of ore began during the early part of November 1873, and the furnaces were set going at the end of that month.