On August 7, 1861 by orders of the President of the Republic, General Juan Antonio Pezet, the Naval Factory was entirely taken over by the Navy, arranging the creation of the Naval Factory Superintendence, thus achieving performance optimization. Years later the Naval Factory made history participating in the construction of the first South American armored ship monitor "Victoria" and the conversion of steamship "Loa" into an armored vehicle; installing machinery, artillery and hull armor. Both ships were part of the national fleet that confronted the Spanish fleet during the naval Battle of Callao in 1866.