Andritz Bundle
What is the history of Andritz?
From its start as an iron foundry in 1852, the company has grown into a global technology leader. Founded by Josef Körösi in Austria, it began by making metal goods and soon moved to larger items like pumps and water turbines.
Today, it's a major player in industries like hydropower and pulp & paper. The company's journey shows a strong ability to adapt and innovate over time.
What is the history of Andritz?
What is the Andritz Founding Story?
The Andritz company history began in 1852 when Hungarian entrepreneur Josef Körösi established an iron foundry and machine works in Andritz, a suburb of Graz, Austria. Initially, Körösi focused on producing smaller cast iron items, but the business quickly evolved to meet the growing industrial demand for larger, more complex machinery.
The Founding Story of Andritz
The Andritz company origins trace back to 1852, founded by Josef Körösi in Austria. What started as a small iron foundry rapidly grew into a significant industrial player, driven by an opportunistic approach to market needs.
- Founded in 1852 by Josef Körösi.
- Initial focus on cast iron goods like nails and gratings.
- Quickly expanded to large capital goods such as cranes and pumps.
- By 1860, employed over 500 people, highlighting early success.
- The company's development was fueled by the industrialization of Central Europe.
The early years of the Andritz company timeline show a remarkable trajectory of growth and diversification. By 1860, the company had already grown to employ over 500 individuals, a testament to the strong demand for its expanding product line. This growth continued, reaching 1,300 employees by 1870. The business model was centered on manufacturing and supplying essential industrial equipment, which soon included steam boilers, engines, mining equipment, and even bridges. This responsiveness to industrial needs laid the foundation for its future specialization in heavy machinery and plant engineering, a key aspect of the Revenue Streams & Business Model of Andritz.
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What Drove the Early Growth of Andritz?
The early years of the Andritz company marked a significant transformation from a regional iron foundry to a global machinery manufacturer. This period saw the company embrace new technologies and expand its product offerings, laying the groundwork for future success.
From Local Foundry to Public Corporation
In 1900, the company transitioned into a public corporation, becoming 'Maschinenfabrik Andritz Actiengesellschaft' and integrating into the Gutmann group. During this era, it began producing equipment for the pulp and paper sector and developed advanced high-pressure centrifugal pumps, showcasing early technological advancements.
Strategic Partnership and Pulp & Paper Focus
A pivotal moment in the Andritz company history occurred in 1949 with a lasting cooperation with the Escher Wyss Group. This collaboration initially focused on water turbines and, from 1951, expanded to include the production of complete paper machines, solidifying its position in the pulp and paper industry.
Diversification and Environmental Technologies
The company experienced consistent growth through the 1960s and 1970s. By 1983, it established its Environmental and Process Technologies Division, adapting dewatering and drying technologies for industrial sludge treatment, demonstrating a commitment to evolving market needs.
Aggressive Expansion and Global Reach
A significant strategic shift began in 1987 when AGIV AG acquired a majority stake, propelling the company towards becoming an international supplier of its own high-tech systems. This led to an aggressive expansion policy through acquisitions, starting with Sprout-Bauer in 1990. Key acquisitions in the early 1990s, including Durametal (1992), Kone Wood (1994), and Jesma-Matador A/S (1995), significantly broadened its product portfolio and global presence, a testament to its evolving Marketing Strategy of Andritz.
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What are the key Milestones in Andritz history?
The Andritz company history is marked by significant strategic shifts, continuous innovation, and adept navigation of challenges. A pivotal transformation occurred in the late 1980s and 1990s, moving from a licensing model to developing proprietary high-tech production systems, which fueled expansion through strategic acquisitions. This period saw the company solidify its position as a global leader in various industrial sectors, a trajectory that continues to define its development.
| Year | Milestone |
|---|---|
| Late 1980s/1990s | Shifted from a licensee model to developing proprietary high-tech production systems, initiating a period of robust expansion through acquisitions. |
| 2000 | Acquired Ahlstrom Machinery Group, becoming a globally leading supplier of pulp production systems. |
| 2006 | Acquired VA TECH HYDRO, establishing itself as a leading supplier of electromechanical equipment for hydropower plants. |
| 2013 | Acquired Schuler GmbH, a German press manufacturer and global market leader in metal forming technology, marking the largest acquisition at that time. |
| April 2022 | Joachim Schönbeck was appointed CEO, succeeding Wolfgang Leitner who moved to the Supervisory Board. |
| June 2025 | The Science Based Targets initiative (SBTi) officially approved the company's near-term climate targets, aligning its decarbonization plans with the 1.5°C trajectory of the Paris Agreement. |
Innovation at the company is deeply rooted in sustainable technologies and digitalization. The company's 'We Care' sustainability program aims to halve its CO₂ footprint by 2025 (from 2019 levels) and significantly reduce water consumption and waste. By 2024, approximately 40% of its revenue is already generated from sustainable products and solutions, with a target to exceed 50% by 2025.
Sustainable Technologies Focus
The company's 'We Care' program underscores a strong commitment to environmental responsibility, targeting substantial reductions in CO₂ emissions and resource consumption.
Digitalization Strategy
The Metris All-in-One platform offers over 50 applications designed to enhance production quality, improve operational reliability, and lower emissions for its customers.
Climate Target Alignment
The official approval of its near-term climate targets by the SBTi in June 2025 validates the company's alignment with critical global climate goals.
Revenue from Sustainable Solutions
As of 2024, a significant portion of the company's revenue, around 40%, is derived from sustainable products and solutions, with a forward-looking target to increase this share.
Acquisition-Driven Growth
Strategic acquisitions, such as those of Ahlstrom Machinery Group and Schuler GmbH, have been instrumental in expanding its market leadership and technological capabilities across key sectors.
Technological Advancement
The company's evolution from a licensee to a developer of proprietary high-tech systems showcases a consistent drive for technological advancement and market differentiation.
The company has faced significant challenges, including market downturns like the early 1930s global economic crisis which halted production, and the early 1980s second global oil crisis that resulted in losses and necessitated government subsidies and rationalization. These periods of adversity were met with strategic restructuring, including workforce reductions and the closure of its foundry in the 1980s, to restore profitability and adapt to changing economic landscapes.
Economic Downturns
The company experienced production halts during the early 1930s economic crisis and faced losses during the early 1980s oil crisis, requiring significant adjustments.
Restructuring and Rationalization
In response to financial difficulties, strategic measures such as workforce reductions and operational closures were implemented to ensure long-term viability and profitability.
Leadership Transitions
Key leadership changes, such as the CEO appointment in 2022, have guided the company through evolving market conditions and strategic priorities.
Adaptive Capacity
Past challenges have fostered a strong adaptive capacity, enabling the company to maintain its commitment to technological leadership and sustainability.
Market Volatility
Navigating global economic shifts and industry-specific downturns has been a recurring challenge, requiring strategic foresight and operational flexibility.
Government Subsidies
During difficult economic periods, the company has, at times, relied on government subsidies to maintain operations and undergo necessary restructuring, as seen in the 1980s.
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What is the Timeline of Key Events for Andritz?
The Andritz company history is a narrative of consistent growth and strategic adaptation, beginning with its founding in 1852. From its origins as an iron foundry, the company has evolved through significant milestones, including its transformation into a stock corporation and a series of pivotal acquisitions that have shaped its global presence and technological capabilities.
| Year | Key Event |
|---|---|
| 1852 | Josef Körösi establishes an iron foundry in Graz, Austria, marking the Andritz company founding. |
| 1900 | The company becomes a stock corporation, known as 'Maschinenfabrik Andritz Actiengesellschaft'. |
| 1949 | A cooperation begins with Escher Wyss Group, focusing on water turbine development. |
| 1951 | Production of complete paper machines commences in partnership with Escher Wyss. |
| 1987 | AGIV AG secures a majority stake, initiating a strategic shift towards proprietary high-tech systems. |
| 1990 | The acquisition of Sprout-Bauer signals the start of aggressive expansion through mergers and acquisitions. |
| Mid-1990s | The company's name is officially changed to 'Andritz AG'. |
| 2000 | Acquiring a 50% stake in Ahlstrom Machinery Group positions the company as a global pulp production systems supplier. |
| 2001 | Andritz lists on the Vienna Stock Exchange, enhancing its public profile. |
| 2006 | The acquisition of VA TECH HYDRO solidifies its position as a leading hydropower equipment supplier. |
| 2013 | The acquisition of Schuler Group expands the company's Metals business segment. |
| 2021 | The 'We Care' sustainability program is launched, underscoring a commitment to environmental responsibility. |
| 2022 | Joachim Schönbeck is appointed as the new CEO. |
| 2024 | Reported revenue reaches EUR 8.31 billion, with service revenue accounting for 41% of the total. |
| 2025 (Q1) | Order intake sees nearly 20% growth, driven by demand in renewables and pulp projects. |
| 2025 (June) | The Science Based Targets initiative (SBTi) approves Andritz's climate targets, aligning with a 1.5°C trajectory. |
| 2025 (July) | A significant contract, valued in the mid-three-digit million-euro range, is secured for the Cahora Bassa hydropower plant rehabilitation in Mozambique. |
Financial Performance and Projections
For 2025, Andritz projects revenue between EUR 8.0 billion and EUR 8.3 billion. The comparable EBITA margin is expected to range from 8.6% to 9.0%, supported by robust demand for services and green technologies.
Strategic Focus on Sustainability and Innovation
The company is committed to achieving its ESG goals, including significant reductions in Scope 1, 2, and 3 greenhouse gas emissions by 2030. This aligns with global decarbonization trends and resource efficiency initiatives.
Digitalization and Targeted Acquisitions
Digitalization efforts are centered on the Metris platform, enhancing operational efficiency. Strategic acquisitions, such as LDX Solutions for emission reduction technologies and Salico Group for metal flat strip processing equipment, are key to future growth.
Enabling a Greener Economy
Andritz's vision is to foster long-term growth by enabling a greener economy. This commitment is rooted in its foundational dedication to industrial progress and innovation, ensuring its relevance in a changing global landscape. Learn more about the Growth Strategy of Andritz.
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