Vereinigte Stahlwerke AG
Encyclopedia
The Vereinigte Stahlwerke AG (VSt or Vestag) (English:United Steelworks) was a German industrial conglomerate producing coal
, iron
, and steel
in the interbellum and during World War II
.
The VSt were founded in 1926 when economic pressures (decreasing prices and excess capacities) led to the union of several companies including Thyssen AG
, Phoenix AG für Bergbau und Hüttenbetrieb, Rheinische Stahlwerke, Rhein-Elbe-Union GmbH, Deutsch-Luxemburgische Bergwerks- und Hütten-AG, Bochumer Verein, and Gelsenkirchener Bergwerks-AG. This group united of most German iron, steel and coal producers, but did not include Hoesch AG
, Krupp AG, Klöckner-Werke, Gutehoffnungshütte, and Mannesmann
.
The company was headquartered in Düsseldorf
. During the thirties VSt was one of the biggest German companies and, at times, also the largest steel producer in Europe. With up to about 250,000 workers it produced about 40% of the steel and 20% of the coal produced in Germany. Chief executive officer (chief of the Vorstand
) was initially Albert Vögler
, until 1935. Fritz Thyssen
was chairman of the board (Aufsichtsrat).
In 1932, as a result of the effects of the Great Depression
, part of the company was nationalized to prevent bankruptcy
. The Weimar government bought stock valued at 25 million Reichsmark (RM) for 99 million RM. This transaction like the similar Gelsenberg affair led to a public outcry. According to Heinrich Brüning
the company then went on to support the Nazi party with 500,000 RM for the 1932 elections. The Nazi government re-privatized the stocks four years later so that the Vst achieved a net win of 33 million RM. The Vst became a major contributor in supplying materiel and munitions to the war effort. However, as the Vst was unable to fulfill the demands of the Nazi government, another steelwork, the Reichswerke Hermann Göring
were founded in Salzgitter
.
During WWII most of the production facilities were destroyed by bombing, and after the war, the company was dismanteled. From the residuals several companies were founded in the Federal Republic of Germany
after 1951, including Hörder Bergwerks- und Hütten-Verein, August Thyssen-Hütte AG, Rheinstahl, and Bochumer Verein.
Coal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
, iron
Iron
Iron is a chemical element with the symbol Fe and atomic number 26. It is a metal in the first transition series. It is the most common element forming the planet Earth as a whole, forming much of Earth's outer and inner core. It is the fourth most common element in the Earth's crust...
, and steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
in the interbellum and during 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 VSt were founded in 1926 when economic pressures (decreasing prices and excess capacities) led to the union of several companies including Thyssen AG
Thyssen AG
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.-History:...
, Phoenix AG für Bergbau und Hüttenbetrieb, Rheinische Stahlwerke, Rhein-Elbe-Union GmbH, Deutsch-Luxemburgische Bergwerks- und Hütten-AG, Bochumer Verein, and Gelsenkirchener Bergwerks-AG. This group united of most German iron, steel and coal producers, but did not include Hoesch AG
Hoesch AG
The Hoesch AG was an important steel and mining company with locations in the Ruhr area and Siegen.Hoesch was taken over by Krupp in 1991.-Nazi involvement:...
, Krupp AG, Klöckner-Werke, Gutehoffnungshütte, and Mannesmann
Mannesmann
Mannesmann AG was a German corporation with headquarters in Düsseldorf. The company was founded in 1890 originally to produce seamless steel tubes. It was traded on the Frankfurt Stock Exchange. The company had 130,860 employees worldwide and revenues of €23.27 billion.Over time, Mannesmann...
.
The company was headquartered in Düsseldorf
Düsseldorf
Düsseldorf is the capital city of the German state of North Rhine-Westphalia and centre of the Rhine-Ruhr metropolitan region.Düsseldorf is an important international business and financial centre and renowned for its fashion and trade fairs. Located centrally within the European Megalopolis, the...
. During the thirties VSt was one of the biggest German companies and, at times, also the largest steel producer in Europe. With up to about 250,000 workers it produced about 40% of the steel and 20% of the coal produced in Germany. Chief executive officer (chief of the Vorstand
Vorstand
In German corporate governance, a Vorstand is the management board of a corporation. It is hierarchically subordinate to the Aufsichtsrat , as German corporate law imposes a two-tier board system....
) was initially Albert Vögler
Albert Vögler
Albert Vögler , was a German liberal politician, industrialist and entrepreneur. He was a co-founder of the German People's Party, and an important executive in the munitions industry during the Second World War....
, until 1935. 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...
was chairman of the board (Aufsichtsrat).
In 1932, as a result of the effects of the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
, part of the company was nationalized to prevent bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
. The Weimar government bought stock valued at 25 million Reichsmark (RM) for 99 million RM. This transaction like the similar Gelsenberg affair led to a public outcry. According to Heinrich Brüning
Heinrich Brüning
Heinrich Brüning was Chancellor of Germany from 1930 to 1932, during the Weimar Republic. He was the longest serving Chancellor of the Weimar Republic, and remains a controversial figure in German politics....
the company then went on to support the Nazi party with 500,000 RM for the 1932 elections. The Nazi government re-privatized the stocks four years later so that the Vst achieved a net win of 33 million RM. The Vst became a major contributor in supplying materiel and munitions to the war effort. However, as the Vst was unable to fulfill the demands of the Nazi government, another steelwork, the Reichswerke Hermann Göring
Reichswerke Hermann Göring
Reichswerke Hermann Göring was an industrial conglomerate of Nazi Germany. It was established in July 1937 to extract and process domestic iron ores from Salzgitter that were deemed uneconomical by the privately held steel mills...
were founded in Salzgitter
Salzgitter
Salzgitter is an independent city in southeast Lower Saxony, Germany, located between Hildesheim and Braunschweig. Together with Wolfsburg and Braunschweig, Salzgitter is one of the seven Oberzentren of Lower Saxony...
.
During WWII most of the production facilities were destroyed by bombing, and after the war, the company was dismanteled. From the residuals several companies were founded in the Federal Republic of Germany
West Germany
West Germany is the common English, but not official, name for the Federal Republic of Germany or FRG in the period between its creation in May 1949 to German reunification on 3 October 1990....
after 1951, including Hörder Bergwerks- und Hütten-Verein, August Thyssen-Hütte AG, Rheinstahl, and Bochumer Verein.
Literature
- Alfred Reckendrees: Das "Stahltrust"-Projekt. Die Gründung der Vereinigte Stahlwerke A.G. und ihre Unternehmensentwicklung 1926-1933/34. Schriftenreihe zur Zeitschrift für Unternehmensgeschichte, 5. München: C. H. Beck Verlag, 2000. ISBN 3-406-45819-X.