The Engine House was added to the western end of the Institute for the Formation of Character in 1881 to accommodate a newly acquired 550HP Petrie steam engine. Part of the Institute was removed to accommodate this, radically altering its appearance from the beautiful symmetrical building originally planned by Owen. The steam engine was fed by boiler houses and a massive chimney which dominated the view of the village for 80 years or so. The Engine House was then linked to the machinery in Mill 3 by a deep rope drive. The glass bridge which now connects the Engine House to Mill 3 is a modern replica of this rope drive.

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