Demag
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Demag is a German manufacturer of heavy equipment. The company is made up of several divisions, including crane and port technology, crane manufacturing, injection molding machines, and automated material handling equipment.
Demag manufactures cranes through Demag Cranes & Components in 16 countries but is represented in more than 100 countries through various subsidiaries and services.
As of the end of the 2006/2007 financial year, the Demag Group comprised about 5,813 employees and had generated sales of approximately EUR 1.1 billion.[1]
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[edit] History
Demag Cranes & Components GmbH was founded in 1819 under the name Mechanische Werkstatten Harkort & Co. in Wetter an de Ruhr in Germany. The onset of the Industrial Revolution was crucial to the success of the company and in influencing its production of steam engines, steel works, and rolling mills. The growing need for mechanization led them to become the first crane manufacturing company in Germany, and their market was focused largely on marine transport and manufacturing for industrial and trading purposes.
[edit] Gottwald’s History and Eventual Inclusion in the Demag Group
In 1906, another company was formed that would play a huge significance in the future of Demag. Gottwald Port Technology GmbH was formed in Dusseldorf, Germany, but was then known as Mmaschinenfabrik Ernst Halbach AG.
Leo Gottwald KG built the first mobile harbor crane in 1956.[2] Previously, cranes had to be taken apart in order to be brought from one location to the next, or they had to be hauled by a larger and more powerful piece of machinery, which would increase the project costs. When cranes became mobile, this was no longer an issue. Although not associated with Demag until 1988 when Mannesmann acquired it and incorporated into Mannesmann Demag AG, Leo Gottwald KG provided Demag with historical knowledge crucial to expansion.
[edit] Early Acquisitions and Mergers
In 1910, several companies joined together to form the present day Demag Group. These included Marki Engineering Co., Duisburger Mechanical Engineering AG, the Benrather Engine Works GmbH, as well as Meschanische Werkstatten Harkort & Co. The result was Deutsch Maschinenfabrik AG Co. (Demag). The merging of so many engineering and mechanical manufacturing companies gave Demag a boost to thrive in the equipment manufacturing industry—so much so that production expanded to crane hoists and electric motors. [3]
[edit] World's Largest Floating Crane
One of the most infamous cranes to come from this union was the largest floating crane in the world, produced for a company called Harland & Wolff. Harland & Wolff used the crane for the construction of passenger liners on the RMS Olympic an RMS Titanic. [4]
[edit] Expansion: More Equipment, More Plants, and More Technology
The Demag Group began producing a wider range of machinery, including excavators, locomotives, and railroad cars in 1925. As with many manufacturers during the Second World War, Demag expanded, formed the Demag Zug GmbH in 1939, and prepared for the war. It produced a range of machinery specifically for the army, including an armored fighting vehicle. [5]
The Bad Bergzabern plant, constructed in 1961, was used to manufacture more machine components, including electric chain hoists and other electrical crane components.
By 1954, Demag was not only producing excavators, but hydraulic excavators, as well as a line of other machinery, including vehicle cranes. It became one of the three major German companies, along with Liebherr and O&K, to produce and manufacture giant mining excavators. However, Komatsu acquired this division when it took over in 1997.[6] It also started producing compressors for its engineering unit.
In addition to expanding its machinery line, Demag also integrated up-to-date technology and services, such as a conveying engineering workshop, and the implementation of steel mill technology for continuous casting installations.
Demag, comprising several companies crossing over several industries, was also one of the biggest manufacturers of injection molding machines; however, this was later acquired by Mannesmann Co. in Germany.
[edit] Mannesmann Restructuring in the 90s
The 1990s were characterized by a restructuring of the Mannesmann Demag Group. In 1992, it was reconfigured and another company, Mannesmann Demag Fordertechnik AG, with a base in Wetter, Germany, was created out of the mix. This new company within the Demag Group took over the mobile cranes division from Mannesmann Demag AG in 1996 and was renamed Mannesmann Dematic AG a year later.
Also in 1996, Demag completed an engineering project that Komatsu was also engaged in. After the venture was completed and the new rolling technology produced, Vodafone got involved with the company, specifically with a division of the metallurgical plants and rolling mills segment of the group. This was taken over by SMS and subsequently renamed as SMS Demag in 1999.
[edit] The 21st Century
In 2000, Mannesman Dematic became a part of the Atecs Mannesman AG Group. At the same time, the Demag Cranes & Components GmbH division of the Demag Group was formed.
Several acquisitions took place in this 2000: Vodafone acquired Mannesmann and Siemens AG, and Robert Bosch GmbH purchased Atecs Mannesmann. The latter acquisition, however, saw the division of Atecs Mannesman AG, which operated the Demag Cranes segment, belonging under the Siemens Group.
In just two short years, Demag Holdings acquired Demag Cranes & Components and Gottwald Port Technology. The combination of the group meant that private equity investment funds, which were primarily held by KKR, amounted to 81 percent interest, and 19 percent accounted for Siemens AG invested interest. This led to a massive downsizing of the company and more than 1,000 jobs were lost—a situation that became known as the "locust" debate.
As Siemens gave up the Demag Cranes & Components segment of the Demag Group, it was acquired by KKR, who restructured the group and its product lines.
In 2006, both Demag Cranes & Components and Gottwald Port Technology were consolidated under one company, Demag Cranes AG. [7]
[edit] The Company Today
Today, Demag Cranes AG supplies industrial cranes, harbor cranes, crane components, and port automation technology. As a part of its services division, Demag offers maintenance and refurbishment of the machines and parts it manufactures.
Demag manufactures a variety of cranes, including single and double-gird cranes with capacities up to 150 tons and reaching heights of 140 feet (43 m). It also produces suspension cranes capable of loading up to 7,000 pounds (3,175 kg) of materials, as well as cranes that are supplied to the U.S Air Force, Navy, and Coast Guard, and organizations such as American Airlines and USX. Another type of crane is the overhead crane, for which there is a large enough demand to account for 1/3 of Demag's crane production sales.
The components selection consists of hoists with capacities of up to 100 tons, output gear reducers, brake motors with signature conical rotor and stator designs, winch units, wheel blocks, DC chain hoists, DR wire ropes, and more.
Today, the Demag Group makes up several segments, including:
- Demag Cranes AG – crane and port technology
- Demag Cranes – crane manufacturing
- SMS Demag – steel mill and rolling technology
- Demag – Terex Demag mobile cranes
- DPG – injection molding machines
- Dematic – automated material handling equipment
[edit] Equipment List
[edit] References
- ↑ Homepage. Demag Cranes. 2008-09-30.
- ↑ History. Demag Cranes. 2008-09-30.
- ↑ History. Demag Cranes. 2008-09-30.
- ↑ Demag. Nationmaster. 2008-09-30.
- ↑ Demag. Nationmaster. 2008-09-30.
- ↑ Haddock, Keith. Earthmother Encyclopedia. Motorbooks: St. Paul’s, 2002.
- ↑ History. Demag Cranes. 2008-09-30.
