Under the reign of Frederick III, Holmen was established through a series of land reclamations to replace the naval base and shipyard at Bremerholm. The first ship to be set a sea from Nyholm was Dannebrog in 1692 and un the following years the construction of all major vessels gradually moved there. The facilities at Holmen were constantly expanded over the next centuries.
Earlier the building of sailing ships had not required sheers to erect their mast, as it could be lifted into place by ropes and allowed to pivot around its foot. As ships became larger, it was no longer possible to mount their masts, taller and heavier, in this fashion. A crane was needed, tall enough to lift the entire mast vertically and then lower it into the ship. It was as a consequence of this development that the Masting Crane on Nyholm was erected in 1748–51. In the late 19th century, the increasing size and capacity of general harbour cranes began to overlap with the lofty but lightweight masting sheers and so their specialisation was no longer required. In 1918 all shipyard activities at Nyholm were discontinued and moved to Frederiksholm. (Source: Wikepedia)