The factory was situated to Sætre as Håøya served as a natural shield that would help reduce the spread of an explosion and cause major damage. Embankments were also built around the factory to protect Sætre. In addition, Sætre had several other advantages such as access to hydropower, access to the sea to ship out dynamite and its remoteness from the largest towns.

The factory was a cornerstone company in Sætre; Around two-thirds of the population had their income from it. Workers' housing, a village hall and a school were built, and the local community grew. The life of the workers at the Engene dynamite factory was tough and risky, with the risk of explosions and accidents, of which there were several over the years. Dynamite production required accuracy and precision. The workers were also at risk of poisoning, health problems due to long working hours and poorly ventilated working conditions that caused chronic suffering.

How dynamite is made:

The main ingredient in dynamite was nitroglycerin, an extremely explosive liquid. Nitroglycerin was made by mixing glycerin with a strong acid mixture, usually nitric acid and sulfuric acid. Liquid is very unstable and can easily detonate on impact, heat or friction, so workers had to be careful. Then, the nitroglycerin had to be stabilized before it could be used to make dynamite. This was done by mixing with a porous absorbent material, usually diatomaceous earth (a naturally occurring silicate mineral). The dynamite was then sent to the "bakery" and mixed with other substances into a thicker mass that could be shaped into rods or other desired shapes. The dynamite was usually wrapped in cardboard or metal cover to protect it during storage and transportation.

After the dynamite was produced, it was carefully checked to test its explosiveness and stability, as well as to ensure that each production batch was uniform.

Due to the dangerous working conditions, technological developments and changes in the market, dynamite production ended in 1973 and the production of nitroglyceration in 1976. Nitrocellulose was produced until 1991, while production of dynamite continued at the plant at Gullhaug in Lier. Dynamite production at Engene was an important contribution to Norway's industrial development, but also a symbol of the risky working conditions that characterized the industry of the time.