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Developers. Krupp MaK (Germany)

Ideas make history

"The purpose of work shall be to serve the common weal." Essen, February 1873, Alfred Krupp.

"The history of Krupp is a succession of ideas and inventions. They begin shortly after the company is founded in 1811 with the factory-scale manufacture of high-quality cast steel. The invention of the seamless forged and rolled railway tyre in 1852/53 represented a milestone in the company's history. Today, Krupp is among the leaders of the European capital goods industry, with activities in mechanical engineering, plantmaking, the production and processing of steel, and in trading and services. From the outset the name Krupp stood for pioneering entrepreneurial spirit, technical progress and economic prowess - endowed with a sense of social responsibility. On this firm foundation of experience and tradition Krupp today continues to offer ideas and inventive stimulus in many areas of modern life.

On November 20, 1811, during Napoleon's Continental Blockade on Britain, Friedrich Krupp, member of an old family of Essen merchants, establishes a factory with two partners "for the making of English cast steel and all products therefrom".

Successful production of crucible steel

Now the factory's sole proprietor, in 1816 he develops a process for making high quality crucible steel on a factory scale. His first products are files and cast steel bars, which are followed by tanner's tools, coining dies and roll blanks.

High capital outlay on a new building to house the works and the proprietor's ill health lead the firm into financial straits. When Friedrich Krupp dies in 1826 the factory is heavily in debt.

Alfred Krupp registers the company's trademark - three overlapping seamless railway tyres - in 1875.

Manufacturing activities gain strength

Alfred Krupp, the eldest son, is 14 when he takes over the small works. He continues to make cast steel but soon moves on to the manufacture of finished products, which he endorses with his personal guarantee of quality. At first these are finish-machined rolls and rolling machines, mainly supplied to gold and silver smiths, and later to cutlery manufacturers.

The expansion of the railways opens up new applications for hard-wearing cast steel. Along with axles and springs, the firm's most important product in this field is the forged and rolled seamless railway tyre invented by Alfred Krupp in 1852/53 which is able to withstand the increasing track speeds without fracturing. From 1859 the manufacture of machinery and, to an increasing extent, cannon offers further applications for cast steel.

New markets, economic steelmaking processes, secure sources of supply

Looking beyond Germany and Europe, the company seeks new markets on other continents. To this end Alfred Krupp journeys abroad, establishes agencies and participates in the international exhibitions held from 1851 onwards.

Alfred Krupp endeavours at an early stage to introduce new economic steelmaking processes. As early as 1862 he adopts the Bessemer process and in 1869 installs open-hearth furnaces. At around the same time Alfred Krupp embarks on a policy of acquiring ore deposits, coal mines and iron and steel works to meet his company's growing raw materials needs.

Code of principles

In 1862 Alfred Krupp establishes a corporate body of management, independent of himself, bearing joint responsibility for the affairs of the firm. In 1872 he lays down the managerial principles to be applied in running his enterprise along with the rights and obligations of all his employees in a "General Directive".

Pioneering achievements in employee welfare

From the outset Alfred Krupp strives to create and maintain a loyal, highly skilled workforce. Only thus can he guarantee the high quality of his products.

To lessen the social problems caused by industrialization he introduces employee welfare schemes. As early as 1836 he sets up a voluntary sickness and burial fund, which becomes a compulsory sickness and death benefit insurance scheme in 1853. In 1855 Alfred Krupp establishes a pension scheme and in 1858 a works bakery which is to evolve into the employees' retail store. In 1856 the first hostels are built offering board and lodging to unmarried workers. 1861 sees the introduction of company dwellings for foremen. Workers' housing estates incorporating schools and branches of the retail store follow in 1863 and from the early 1870s grow apace. In 1872 the works acquires its own hospital. When Alfred Krupp dies in 1887, the firm's employees number some 20,000.

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