It was constructed in the early nineteenth century by engineer Thomas Telford, and is a sister canal of the Göta Canal in Sweden, also constructed by Telford.
After the canal was opened, Motala Verkstad focused on producing equipment, locomotives and rolling stock for the newly constructed railways, beginning a tradition of railway engineering that continues to this day in the form of AB Svenska Järnvägsverkstädernas Aeroplanavdelning (ASJA) that was bought by the aeroplane manufacturer SAAB in Linköping.
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