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. Sven Almqvist took over the management and formed a new company,
Lindholmens Verkstads AB, with SEK 1,000,000 capital. The new business employed
Hugo Hammar, fresh from the United States and later to lead
Götaverken, as the chief engineer. New commissions came in from Svenska Lloyd and, in 1903, the company was asked to build the Swedish Navy's new flagship . Other large ships followed, including two cargo vessels for the
Axel Johnson Group, named
Axel Johnson and
Annie Johnson, launched in 1910 and 1911 respectively. In 1912, AB Bergsund purchased a majority of Motala Verksted, and so acquired their shares in Lindholemen. 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. ==AB Lindholmen-Motala==