 The company built three wooden tugs at Tower Hill, likely including the diminutive 11 t "Merrimac", and later built up the towing fleet over a number of years.Following some initial success with wooden hulled tugs, in 1862 John Payne acquired the former Acraman Yard in Bedminster in order to build iron vessels.A number of these ships were fitted with steam engines built in his own foundry in Tower Hill.