Marktsteeg is an alley of a type that was widespread in Leiden in the past, a real factory street. The first steam engine in the North Netherlands textile industry was put to use in Leiden in 1816. The 19th century building on the right side of this alley used to be the factory of J. Scheltema, producing blankets. Later a decorative facade was added to the factory on the Oude Singel side.

The building on the left side of the alley was originally a building materials factory. It was later absorbed by Scheltema’s factory. Thanks to steam power, the use of machines and cheap labour (children!), in the 19th century the Leiden textile industry managed to climb out of a deep recession. But it lost its dominant position in the Netherlands to other regions. Leiden industry was no longer solely concerned with textiles, as it had been in the 17th century. Now there were engineering firms, printers and canning plants.

Leiden long remained an industrial city. A forest of factory chimneys dominated its skyline. Traditional industry disappeared between 1965 and 1985. In 1959 the firm of J. Scheltema Jansz, closed for good. Today Scheltema is a centre for contemporary art.