text: In 1866, Hughes announced a sale of timber and associated equipment from the "Falcon Railway Plant Works" as he had decided to close down the timber side of his business, also sold was a portable steam engine and thrashing engine.
  In 1877, a limited company (Hughes's Locomotive & Tramway Engine Works Ltd) was created with Henry Hughes as managing director, to carry on the business previously under the name of the "Falcon Railway Plant Works". The business included the production of the original small saddle tank locomotives, but was anticipating increased demand for the production of tram engines, lightweight steam engines (usually with condensers) which drew passenger cars, made possible by the Tramways Act 1870 (33 & 34 Vict. c. 78). His original patented tramway engine was reported to have been tested on the Vale of Clyde and other tramways with good results. Tram engines were distinct from those tramcars where the boiler mechanism was an integral part of the passenger car.
  Examples of early engines are the tramway locomotive The Pioneer of 1877 for the Swansea and Mumbles Railway, and Belmont (an 0-4-2 saddle tank), which ran on the Snailbeach District Railways, and three  gauge 0-4-0STs for the Corris Railway supplied in 1878 (converted in the 1880s to 0-4-2ST).
  In 1881, Hughes' built two  gauge 0-4-0STs for the Liverpool Corporation Waterworks Committee for use in the construction of the waterworks at Lake Vyrnwy in Wales.