Thyssen AG
Encyclopedia
Thyssen was a major German steel producer founded by August Thyssen
. After over 100 years of existence the company merged with Friedrich Krupp AG Hoesch-Krupp
to form ThyssenKrupp
in 1999.
and his brother Joseph came to be in possession of all shares of Gewerkschaft Deutscher Kaiser a coal mining company. On 17 December 1891 the steelworks of the same company opened in Hamborn, Duisburg
.
Subsequently the plant was modernized and expanded by August Thyssen, becoming a vertically integrated company
producing iron and steel and manufacturing ships, machines etc.
After the First World War came the occupation of the Ruhr
and the loss of many foreign interests; however the company remained viable.
On 4 April 1926 August Thyssen died; his son, Fritz Thyssen
became chairman of a new group Vereinigte Stahlwerke AG
(united steelworks) which was formed by a consortium of companies, with Thyssen representing 26% of the company's value. In 1934 August Thyssen-Hütte AG was founded as part of the new group.
The Nazi rearmament policy
and subsequent war made the plants essential to the war economy. After the end of World War II
, the Allies
ordered the company to be liquidated and in 1953 a new company, also named August Thyssen-Hütte AG, was formed in Duisburg. The other mills of the company in Duisburg became legally independent entities; in the 1950s and 1960s they were reintegrated into the Thyssen group. However the mining division was not reconglomerated; thus Thyssen became largely a steel company.
In 1954/55 the group focused on acquisitions to restore the vertical integration
by acquiring mining
concerns.
Further companies were acquired: Niederrheinischen Hütte AG in 1956, Deutschen Edelstahlwerke AG in 1957, Phoenix-Rheinrohr AG (metallurgical works and mills) and Hüttenwerk Oberhausen AG in 1968. The product range included steel sections and flat steel in all grades including high-alloy steel. By the mid 1960s August Thyssen-Hütte AG was Europe's largest crude steel producer, and the fifth-largest in the world.
In the 1960s the company also formed cooperative alliances with companies such as Mannesmann AG. By 1972 it employed 92,200 people and generated annual sales of 9.8 billion DM.
In 1973 the company acquired Rheinstahl AG, a mainly manufacturing company. This takeover
reduced the company's dominance in the steel industry and converted it to a conglomerate
. In 1977 the company became Thyssen AG, with Rheinstahl AG already having been renamed Thyssen Industrie AG in 1976.
In 1983 Thyssen Stahl AG was spun off. During the 1980s talks on a merger between Thyssen Stahl AG and Krupp Stahl AG took place. An alliance did not take place at that time but there began cooperation on certain business areas (tinplate, electrical steel
and stainless steel
).
In 1997 the flat steel production divisions of both groups were merged to form Thyssen Krupp Stahl AG.
On 17 March 1999 a new group formed by the merger of Thyssen and Krupp was registered, and on 23 October of the same year the merger took place, forming Thyssen-Krupp AG.
August Thyssen
August Thyssen was a German industrialist.-Career and marriage:...
. After over 100 years of existence the company merged with Friedrich Krupp AG Hoesch-Krupp
Krupp
The Krupp family , a prominent 400-year-old German dynasty from Essen, have become famous for their steel production and for their manufacture of ammunition and armaments. The family business, known as Friedrich Krupp AG Hoesch-Krupp, was the largest company in Europe at the beginning of the 20th...
to form ThyssenKrupp
ThyssenKrupp
ThyssenKrupp AG is a German multinational conglomerate corporation headquartered in Duisburg Essen, Germany. The corporation consists of 670 companies worldwide. While ThyssenKrupp is one of the world's largest steel producers, the company also provides components and systems for the automotive...
in 1999.
History
On 29 September 1891 August ThyssenAugust Thyssen
August Thyssen was a German industrialist.-Career and marriage:...
and his brother Joseph came to be in possession of all shares of Gewerkschaft Deutscher Kaiser a coal mining company. On 17 December 1891 the steelworks of the same company opened in Hamborn, Duisburg
Duisburg
- History :A legend recorded by Johannes Aventinus holds that Duisburg, was built by the eponymous Tuisto, mythical progenitor of Germans, ca. 2395 BC...
.
Subsequently the plant was modernized and expanded by August Thyssen, becoming a vertically integrated company
Vertical integration
In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to...
producing iron and steel and manufacturing ships, machines etc.
After the First World War came the occupation of the Ruhr
Occupation of the Ruhr
The Occupation of the Ruhr between 1923 and 1925, by troops from France and Belgium, was a response to the failure of the German Weimar Republic under Chancellor Cuno to pay reparations in the aftermath of World War I.-Background:...
and the loss of many foreign interests; however the company remained viable.
On 4 April 1926 August Thyssen died; his son, Fritz Thyssen
Fritz Thyssen
Friedrich "Fritz" Thyssen was a German businessman born into one of Germany's leading industrial families.-Youth:Thyssen was born in Mülheim in the Ruhr area...
became chairman of a new group Vereinigte Stahlwerke AG
Vereinigte Stahlwerke AG
The Vereinigte Stahlwerke AG was a German industrial conglomerate producing coal, iron, and steel in the interbellum and during World War II....
(united steelworks) which was formed by a consortium of companies, with Thyssen representing 26% of the company's value. In 1934 August Thyssen-Hütte AG was founded as part of the new group.
The Nazi rearmament policy
German re-armament
The German re-armament was a massive effort led by the NSDAP in the early 1930s in violation of the Treaty of Versailles.During its struggle for power the National Socialist party promised to recover Germany's lost national pride...
and subsequent war made the plants essential to the war economy. After the end of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, the Allies
Allies
In everyday English usage, allies are people, groups, or nations that have joined together in an association for mutual benefit or to achieve some common purpose, whether or not explicit agreement has been worked out between them...
ordered the company to be liquidated and in 1953 a new company, also named August Thyssen-Hütte AG, was formed in Duisburg. The other mills of the company in Duisburg became legally independent entities; in the 1950s and 1960s they were reintegrated into the Thyssen group. However the mining division was not reconglomerated; thus Thyssen became largely a steel company.
In 1954/55 the group focused on acquisitions to restore the vertical integration
Vertical integration
In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to...
by acquiring mining
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
concerns.
Further companies were acquired: Niederrheinischen Hütte AG in 1956, Deutschen Edelstahlwerke AG in 1957, Phoenix-Rheinrohr AG (metallurgical works and mills) and Hüttenwerk Oberhausen AG in 1968. The product range included steel sections and flat steel in all grades including high-alloy steel. By the mid 1960s August Thyssen-Hütte AG was Europe's largest crude steel producer, and the fifth-largest in the world.
In the 1960s the company also formed cooperative alliances with companies such as Mannesmann AG. By 1972 it employed 92,200 people and generated annual sales of 9.8 billion DM.
In 1973 the company acquired Rheinstahl AG, a mainly manufacturing company. This takeover
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
reduced the company's dominance in the steel industry and converted it to a conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
. In 1977 the company became Thyssen AG, with Rheinstahl AG already having been renamed Thyssen Industrie AG in 1976.
In 1983 Thyssen Stahl AG was spun off. During the 1980s talks on a merger between Thyssen Stahl AG and Krupp Stahl AG took place. An alliance did not take place at that time but there began cooperation on certain business areas (tinplate, electrical steel
Electrical steel
Electrical steel, also called lamination steel, silicon electrical steel, silicon steel, relay steel or transformer steel, is specialty steel tailored to produce certain magnetic properties, such as a small hysteresis area and high permeability.The material is usually manufactured in the form of...
and stainless steel
Stainless steel
In metallurgy, stainless steel, also known as inox steel or inox from French "inoxydable", is defined as a steel alloy with a minimum of 10.5 or 11% chromium content by mass....
).
In 1997 the flat steel production divisions of both groups were merged to form Thyssen Krupp Stahl AG.
On 17 March 1999 a new group formed by the merger of Thyssen and Krupp was registered, and on 23 October of the same year the merger took place, forming Thyssen-Krupp AG.