Birth of a global machine

When World War I struck Europe, Finland was still part of the Russian Empire. KONE produced 10 million brass shells and casings for the Russian army. KONE’s revenues grew, and staff numbers increased from 10 to 600. But elevator sales were low as the war strained Finland’s economy, bringing construction to a virtual halt.

Finland – formerly the Grand Duchy of Finland in the Russian Empire – becomes an independent republic.

KONE’s advertisement appeared in the magazine Paperi ja Puu.

The first elevators made of components produced by KONE were installed in the Helsinki area in 1918. Post-World War I elevator demand was low, and KONE started with an annual production of 4 elevators in 1918, a figure that grew to 100 in 1924. By 1928 KONE was cranking out an elevator a day.

KONE featured in Finland’s sporting history in 1920 when its technical director at the time, Walter Jakobsson, and his wife, Ludovika, won Olympic gold in mixed pairs skating. The pair remain the only Finnish ice skaters to bring home Olympic gold.

In 1924 KONE’s parent company, Strömberg, faced bankruptcy, weighed down by post-war debt and aging technology. Businessman Harald Herlin noticed that the KONE subsidiary was profitable and worth slightly more than its parent company’s debt. He bought the subsidiary, and in 1924 KONE became an independent company with Harald Herlin as its chairman and principal owner.

KONE’s business grew in the 1920s, and in 1927 it consolidated factory operations in a former margarine plant. Production jumped to 200 elevators that year.

Harald Herlin’s son Heikki Herlin joined KONE’s board.

KONE started producing industrial cranes to counter weak elevator sales. It also began producing its own electric motors, determined to boost and gain better control over the quality of its products.

In 1939 KONE celebrated the production of its 3,000th elevator. During World War II, most of the company’s production capacity was converted to serve Finland’s defense efforts. KONE manufactured ammunition and wood gas generators for vehicles but also managed to maintain a modest level of elevator and crane production.

KONE delivered its 200th crane.

The bombing of Helsinki and demand for industrial cranes to meet wartime production needs forced KONE in 1943 to move its crane production from its increasingly cramped factory in the Finnish capital to Hyvinkää, 55 kilometers away.

When World War II ended, the peace agreement stipulated that Finland pay heavy war reparations to the Soviet Union in the form of capital goods. Between 1945 and 1952, KONE sent 108 elevators (mostly huge service elevators), 202 industrial cranes, and 265 electric hoists to the Soviet Union, all paid for by Finland’s government.

From 1947 workers had to spend their summers fulfilling the company’s share of Finland’s war reparations. KONE began to run summer camps for employees’ children, a KONE tradition that has been maintained to this day.

The KONE logo was redesigned in 1948. Cogwheels were added behind the name plate to represent the expanding business focus on elevators, industrial cranes, and hoisting machinery.

Heikki Herlin’s son Pekka Herlin joined KONE in 1954. In 1958, as part of a thorough management reorganization, he was put in charge of administration. The new management team began rethinking how the company should work: putting KONE’s dormant capital to work, considering how to modernize outmoded production processes, and looking at ways to develop its products

Pekka Herlin replaced his father as KONE president in 1964. His team immediately began planning a modern elevator factory in Hyvinkää to replace the cramped and inefficient Helsinki plant.

KONE opened its new elevator factory. It had a capacity of 2,000 units per year, double the size of Finland’s total elevator market and far more than KONE’s total annual output, which was only about 1,200 units.

By 1967 KONE’s business had evolved, and the logo was redesigned to represent the company’s international ambitions. It symbolizes elevator cars and shafts and perhaps buildings. The blue and white colors reflect those of the Finnish flag and serve as a link to KONE’s heritage.

KONE’s breakthrough came in 1968 when it bought ASEA’s elevator business. The Swedish business unit, with its Norwegian and Danish subsidiaries, was bigger than KONE. In one leap, KONE became market leader in Northern Europe. More acquisitions followed. Six years later, KONE had production, sales and service operations in nine countries.

KONE started escalator production based on its own design at Chateauroux in France.

KONE built a new electric motor factory in Hyvinkää, Finland.

In the 1980s, KONE became a conglomerate with a presence on several geographic markets. It had divisions for elevators and escalators, cranes, electronic medical technology, wood handling for the pulp and paper industry, high-pressure hydraulic piping systems, and shipboard cargo access solutions. KONE started investing in R&D with the creation of a state-of-the-art facility in Hyvinkää, Finland, and placed service increasingly at the center of its offerings.

KONE elevators and escalators were ordered for some of the most iconic buildings of the time, including the 120-meter high “Tête Défense” in Paris, the Opéra Bastille in Paris, and the new building of the ministry of interior for Saudi Arabia.

By the late 1980s, KONE was one of the world’s top 3 companies in elevators and escalators, cranes, wood-handling systems, and shipboard cargo handling systems. But Pekka Herlin and his team were growing older and finding it increasingly difficult to keep this diverse empire functioning efficiently.

In 1996, KONE also bought the remaining shares in its escalator partner, Germany’s O&K Rolltreppen, making it the world’s leading escalator supplier. KONE went quickly from straggler to head of the class.

In the autumn of 1996, Pekka’s son Antti Herlin was named deputy chairman of the board and CEO.

KONE opened a Greenfield factory in Kunshan, China, just in time to catch the crest of the wave that would make China the biggest elevator and escalator market in the world.

KONE opened its high-rise elevator testing laboratory Tytyri in Lohja, Finland. For the first time, elevator travel distances of more than 200 meters could be tested before installation. The facility, still one of the world’s tallest test shafts, is situated in a limestone mine extending 305 meters below ground. At Tytyri, KONE can test speeds of up to 17 m/s – the only test site in the world where such speeds can be reached.

An indication of how deeply KONE was committed to globalization was the naming of a Frenchman, Jean-Pierre Chauvarie, as President.

KONE also entered into a strategic alliance with Toshiba Elevators and Building Systems Corporation, giving Toshiba the right to make and market elevators based on KONE’s machine-room-less technology in Japan.

In 1999 the KONE logo was tweaked. The letters inside the blue blocks were updated to a simple, modern font that suits KONE’s unified global business.

When Pekka Herlin passed away in 2003, his inheritance was deeply tied up in KONE shares. The Partek purchase provided a way for the inheritance to be divided up among his five children. Partek’s companies would be reorganized into a new company, Cargotec, whose shares were held by four of the Herlin children while Antti retained principal ownership of KONE. Antti took over as KONE chairman in 2003.

KONE extended its strategic alliance with Japan’s Toshiba, a cooperative relationship that was topped off with the installation of KONE EcoDisc® hoisting machines in all but two of the elevators in the Taipei Financial Center in Taiwan, the world’s tallest building from 2004 until 2010.

KONE was profitable, but it had fallen behind the industry leader in many key indicators. When Matti Alahuhta was appointed KONE president at the beginning of 2005, he set out to streamline KONE’s organization and improve performance across the board. Smooth people flow in and around buildings, and positive customer experience became central themes. KONE began to outperform competitors and established itself as a major player in the world’s fastest growing markets.

On June 1, KONE Corporation was demerged into two separate companies. One retained the name KONE Corporation, the other became Cargotec Corporation.

KONE was awarded a Good Design Award for its innovative KONE Design Collection. KONE was the first elevator and escalator company to receive a Good Design award. Founded in 1950, the Good Design Award is one of the most recognized design award programs in the world.

As the first company in the elevator and escalator industry, KONE claimed its ambition to be ‘the leader in sustainability’ as part of the company strategy. This was also the year when KONE published its first annual Sustainability Report annually, again as the first in the industry. Sustainability is in the KONE DNA.

The iconic machine-room-less KONE MonoSpace® elevator was completely upgraded in 2012, resetting the industry benchmark with leading eco-efficient performance, premium ride comfort and award-winning design.

KONE revolutionized the high-rise elevator industry with its groundbreaking KONE UltraRope® technology. The superlight hoisting cable has a carbon fiber core and eliminates many of the disadvantages of conventional steel rope, enabling future elevator travel of up to 1 kilometer while providing unparalleled elevator eco-efficiency, reliability and durability.

KONE moved decisively into smart building technology, introducing its KONE People Flow Intelligence family of equipment and software aimed at enabling people to move around buildings as smoothly as possible.

KONE Park, the company’s largest manufacturing unit, was opened in Kunshan, China in April 2013. The site includes an engineering facility, R&D center, three elevator factories, and an escalator factory.

A service mindset, delivering on promises and working closely with customers has helped KONE seal deals for some of the busiest and most impressive buildings in the world, including the Delhi Metro in India, the Leadenhall Building in England, and, in 2014, the Jeddah Tower (previously Kingdom Tower) in Saudi Arabia, set to become the world's first 1-kilometer-tall building.

Henrik Ehrnrooth was appointed president and CEO in April, and his vision is to build on KONE’s strong service roots while continuing to introduce industry leading innovations that enable the best people flow experience in the world’s rapidly growing cities.

KONE repositioned itself for the digital era, announcing the creation of a new Technology & Innovation unit that brings together KONE’s R&D and IT functions.

KONE opened its 36-floor test tower at the KONE Park manufacturing site in Kunshan, China. The 235.6-meter tower contains 12 shafts that can be configured for the testing of high-rise solutions and components at speeds of up to 15 m/s. A high-speed, double-decker elevator featuring Kone UltraRope™ technology carries visitors to a sky lobby and showroom at a speed of up to 10m/s.

The world's first arched escalators were installed at the new Elbphilharmonie concert hall in Hamburg, Germany, which opened at the beginning of November. The city's newest landmark features two arched escalators, which are also the longest in Europe.

KONE brought new levels of flexibility to elevator maintenance with the introduction of its new, customizable KONE Care™ service offering, designed to meet the individual needs of different customers. KONE also launched its 24/7 Connected Services, which use the IBM Watson Internet of Things (IoT) platform and other advanced technologies to connect, remotely monitor, and optimize equipment performance, reliability, and safety.

KONE opened its expanded and renovated high-rise elevator testing laboratory in Tytyri, Finland. The deepest shaft reaches a depth of 350 meters, making it the longest test shaft in the world.

KONE introduced a new digital platform that transforms the people flow experience in buildings and cities by connecting people to equipment and data. This enables KONE to better meet the opportunities of a connected world.

KONE introduced KONE Care™ DX, the first carbon-neutral maintenance service in the elevator industry, complete with predictive capabilities and rapid response times.

KONE became the first in the global elevator and escalator industry to gain IEC 62443 cybersecurity certification for its DX class elevators, and ISO 27001 certification for its digital services, including KONE 24/7 Connected Services.

KONE manufacturing units became carbon neutral at the end of June 2023, reaching a major milestone 18 months ahead of schedule. This achievement showcases KONE's dedication to its climate pledge and ensuring best-in-class supply chain operations globally.

 Philippe Delorme, MSc, MBA, was appointed President and CEO of KONE Corporation as of January 1, 2024. His passion for technology and sustainability, together with his experience in a broad range of leadership roles and international background makes him well suited to develop KONE forward together with his Executive team.

KONE team provided visitors with a great urban flow experience during the summer games in Paris. The Grand Paris Express is a major project for KONE with more than 300 KONE escalators and elevators installed overall. Saint-Denis – Pleyel station is the jewel of the project with an impressive 56 TransitMaster™ escalators moving people up and down, the most equipment installed in a single project for KONE.

KONE launched its new purpose: ‘We shape the future of cities’. In a world where cities are constantly evolving and more and more people choose to live in them, we at KONE stand with one clear aim: to shape the future of cities. We make urban life more vibrant and livable. And we do it by enabling safe, sustainable, and effortless people flow for all. We help cities leave a positive mark on the planet - for the next century and beyond. We shape the future of cities.

KONE was ranked as the 15th most sustainable company in Europe by Corporate Knights, a leading sustainable business magazine and ranking organization. KONE was the only company in the elevator and escalator industry on the Europe 50 Most Sustainable Companies list.

In April, KONE announced plans to combine with TKE to form a world‑class company in the elevator and escalator industry. For over a century, both KONE and TKE have successfully developed their businesses and driven innovation, in tandem with an urbanizing world. The combination would build a joint path for sustainable growth and lasting value creation.