KONE under Heikki Herlin set out to become a first-class engineering and service company. Its first foreign subsidiary - AB KONE Hissar of Sweden - was established in 1957.
After World War II, KONE was called upon by the Finnish government to contribute elevators, electric hoists and cranes to the war reparations being paid to the Soviet Union. This program forced KONE to expand its capacity, rationalize production processes and learn to meet demanding manufacturing schedules.
In the 1950s KONE introduced its first group controls, automatic doors and hydraulic elevators. Heikki Herlin turned over the president's duties in 1964 to his son, Pekka, who had served as administrative director since 1958.
Growth Through Acquisitions
KONE opened a purpose-built elevator factory in 1966 in Hyvinkää, Finland. The following year KONE was listed on the Helsinki Exchanges and started its international expansion through the acquisition of Sweden's Asea-Graham and its Norwegian and Danish affiliates.
Numerous acquisitions followed during the 1970s and 1980s with only the most significant being listed here. The acquisitions of companies larger and older than KONE itself brought KONE respectability and lifted the company to a position of market prominence.
Growth through Diversification
KONE's expansion was not limited to elevators alone. The company also became one of the world's largest hoist and crane manufacturers as well as a producer of high-tech electronic hospital and laboratory equipment.
The addition of Navire Cargo Gear in 1982 and International MacGregor a year later made KONE number one worldwide in shipboard cargo access equipment. Wood-handling systems and equipment for pulp and paper mills, hydraulic piping systems, mining equipment and conveyors, and specialized steel components from KONE's own steel foundry rounded out the company's offerings to industrial customers.
In 1987, after 60 years as a member of KONE's board of directors and 46 as its chairman, Heikki Herlin retired. Prevented by Finnish law from serving simultaneously as president and board chairman, Pekka Herlin ceded the presidency to Matti Matinpalo, the first non-Herlin to occupy the position in 55 years, and continued as Chairman of the Board.
