The site for Dyfi Furnace was chosen downstream of the waterfall on the River Einion to take advantage of the water power from the river and charcoal produced from the local woodlands, with the iron ore being shipped in from Cumbria via the Afon Dyfi.
The furnace was built by Ralph Vernon and the brothers Edward Bridge and William Bridge. Vernon retired between 1765 and 1770, and the Bridges (who also owned Conwy Furnace) became bankrupt in 1773. The furnace probably passed to Kendall & Co. (probably Jonathan Kendall and his brother Henry), West Midlands Ironmasters with extensive interests scattered across Staffordshire, Cheshire, The Lake District and Scotland. After the original lease expired in 1796, the furnace was probably owned by Bell and Gaskell, including Thomas Bell, who had managed it for the Kendalls, whose main activity by then was running the Beaufort Ironworks in Beaufort, Ebbw Vale, in the South Wales Valleys.
- James Dinn, 'Dyfi Furnace excavations 1982-87', Post-medieval Archaeology 22 (1988), 111-42.
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