Kungsholmens Gjuteri & Maskin Verkstad was restructured under the name of J & CG Bolinders Mekaniska Verkstads AB.
Together with Palmcrantzs Verkstäder, Bolinders built Sweden's first submarine and the world's first submarine with the possibility of launching a torpedo while submerged - designed by weapons engineer Torsten Nordenfelt - between 1879 and 1883.
Sweden's first combustion engine - a single-cylinder four-stroke paraffin engine - was designed by an engineer named Weyland.
Erik Rundlöf designed a two-stroke compression-ignition engine for crude oil, and his design was purchased by J & CG Bolinders Mekaniska Verkstads AB. This gave the company a world-wide reputation for inexpensive, reliable and durable engines, particularly for marine applications.
The company merged with Munktells Mekaniska Verkstads AB to form AB Bolinder-Munktell. Certain areas of manufacture remained in a separate company that operated at the Kallhäll plant outside Stockholm and made white goods - ovens and refrigerators, etc.