Kone Bundle
What is the history of KONE?
KONE, a global leader in the elevator and escalator industry, has profoundly impacted urban development for over a century. Its journey began in 1910 in Helsinki, Finland.
A pivotal moment was the 1996 introduction of the KONE MonoSpace® elevator, powered by the KONE EcoDisc® hoisting machine, which revolutionized the industry by eliminating the need for a machine room.
Founded as Osakeyhtiö Kone Aktiebolag, the company started as a machine repair shop with an initial vision to import and install elevators. Today, KONE operates in nearly 70 countries, employing over 60,000 people. In 2024, net sales reached EUR 11.1 billion, with a maintenance base of over 1.7 million units, moving two billion people daily. This growth reflects its adaptability and strategic foresight, as detailed in a Kone PESTEL Analysis.
What is the Kone Founding Story?
The story of KONE begins on October 27, 1910, when it was incorporated as Osakeyhtiö Kone Aktiebolag. Initially, it operated as a subsidiary of Gottfr. Strömberg Oy, a Helsinki-based machine repair shop. The company's early activities focused on refurbishing and selling used Strömberg motors and importing elevators from Sweden, addressing a growing need for vertical transportation in urban areas.
The Founding Story of KONE
KONE's journey started as a subsidiary focused on motor refurbishment and elevator imports. The company's early operations laid the groundwork for its future expansion in vertical transportation solutions.
- Incorporated on October 27, 1910, as Osakeyhtiö Kone Aktiebolag.
- Began as a subsidiary of Gottfr. Strömberg Oy.
- Early operations included refurbishing motors and importing elevators.
- Addressed the nascent demand for vertical transportation.
A pivotal moment in the kone history occurred in 1918 when the company started manufacturing and installing its own elevators, utilizing internally produced components. This marked a significant step in the kone company history, moving from reliance on external suppliers to internal production capabilities. The kone origins trace back to this period of developing its own technological base.
The year 1924 proved to be a landmark for the kone establishment when Harald Herlin acquired KONE from its parent company, which was facing financial difficulties. This acquisition transitioned KONE into an independent entity, initiating the Herlin family's enduring influence over the corporation. Harald Herlin's leadership as chairman, and the subsequent involvement of his son Heikki H. Herlin as technical director from 1928, were instrumental in solidifying KONE's foundation and navigating the challenges of a developing market, setting the stage for its future growth and Growth Strategy of Kone.
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What Drove the Early Growth of Kone?
The early growth of the company was marked by strategic diversification and expansion. After gaining independence in 1924, it quickly became the dominant player in the Finnish elevator market. To navigate the challenges of the Great Depression, the company expanded its offerings to include industrial cranes and electric motors, enhancing its production capabilities.
Early Diversification and Market Dominance
Following its independence in 1924, the company established dominance in the Finnish elevator market. During the 1930s, it diversified into industrial crane production and began manufacturing its own electric motors, a move that bolstered quality control and production efficiency. By 1939, the company had produced over 3,000 elevators.
Post-War Expansion and Innovation
After World War II, the company played a key role in Finland's war reparations, necessitating a significant increase in production capacity. The 1950s saw the introduction of innovative products like group controls, automatic doors, and hydraulic elevators. International expansion commenced in 1957 with the establishment of its first foreign subsidiary in Sweden.
European and US Market Entry
A significant milestone occurred in 1968 with the acquisition of a Swedish company's elevator and escalator business, which tripled the company's volume and established it as a Nordic leader. The 1970s and 1980s were characterized by numerous European acquisitions, including the purchase of Westinghouse's European operations in 1974, which doubled revenues. Entry into the United States market occurred in 1981 through the acquisition of Armor Elevator Co.
Strategic Focus and Leadership Transitions
By the late 1980s, the company had become a conglomerate with diverse divisions. A strategic shift between 1993 and 1995 involved divesting non-core businesses to concentrate solely on elevator, escalator, and automatic door operations. This period also saw leadership changes, with Pekka Herlin succeeding his father and Antti Herlin, the great-grandson of the founder, taking over as CEO in 1996. Understanding the Revenue Streams & Business Model of Kone provides further context to its historical development.
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What are the key Milestones in Kone history?
The kone company history is marked by significant advancements and strategic adaptations. From its early days, the company has consistently pushed boundaries in vertical transportation, establishing a legacy of innovation and resilience. This Brief History of Kone outlines key moments in its development.
| Year | Milestone |
|---|---|
| 1910 | The company was founded in Helsinki, Finland. |
| 1924 | Acquired its first elevator factory, marking a significant step in its manufacturing capabilities. |
| 1967 | Introduced its first escalator, expanding its product portfolio. |
| 1996 | Launched the KONE MonoSpace®, the world's first machine-room-less elevator. |
| 2014 | Introduced KONE UltraRope®, a carbon fiber hoisting rope for high-rise buildings. |
| 2019 | Launched KONE DX Class elevators, integrating digital connectivity. |
| 2020 | Introduced KONE 24/7 Connected Services, utilizing AI for predictive maintenance. |
| 2025 | Received multiple Red Dot design awards for its innovations. |
Key innovations have redefined the industry, including the revolutionary KONE MonoSpace® elevator in 1996, which eliminated the need for a separate machine room, saving space and energy. Further advancements include the KONE UltraRope®, a superlight carbon fiber hoisting rope enabling travel distances of up to one kilometer, and the KONE DX Class elevators, which integrate digital connectivity for an enhanced user experience.
KONE MonoSpace® Elevator
This groundbreaking machine-room-less elevator, launched in 1996, significantly reduced space requirements and energy consumption, setting a new industry standard.
KONE UltraRope®
A superlight carbon fiber hoisting rope introduced in 2014, enabling elevator travel distances of up to one kilometer, crucial for supertall buildings.
KONE DX Class Elevators
These elevators integrate digital connectivity and a platform approach, enhancing user experience and building management capabilities.
KONE 24/7 Connected Services
This AI-equipped service brings predictive maintenance to the forefront, aiming to minimize downtime and optimize elevator performance.
Design Recognition
The company has received prestigious awards, including a Good Design Award for its KONE Design Collection and multiple Red Dot design awards in 2025, highlighting its commitment to aesthetics and user-centric design.
Innovation Leadership
In 2016, Forbes business magazine recognized the company's forward-thinking approach by ranking it among the world's top 50 innovation leaders.
The company has navigated significant challenges throughout its kone evolution. The Great Depression in the 1930s necessitated diversification into industrial cranes to counter reduced elevator sales. In the 1990s, a strategic review identified a need to divest non-core businesses to sharpen focus on elevators and escalators. A substantial hurdle was the European Union's €992 million fine for price-fixing activities between 1995 and 2004.
Economic Downturns
The Great Depression in the 1930s forced diversification into industrial cranes to mitigate losses in elevator sales, showcasing early adaptability.
Strategic Refocusing
In the 1990s, the company recognized competitive gaps and divested non-core assets between 1993 and 1995 to concentrate on its primary elevator and escalator operations.
Regulatory Fines
A significant challenge was the €992 million fine imposed by the European Union for price-fixing conduct that occurred between 1995 and 2004.
Market Headwinds
The declining New Building Solutions market in China presents a current challenge for 2025, prompting a greater emphasis on the company's Service and Modernization businesses.
Adaptation and Resilience
The company has consistently overcome obstacles through strategic restructuring, continuous innovation, and adapting its business model, including leveraging digitalization for service efficiency and prioritizing sustainability.
Competitive Landscape
Acknowledging a lag in technology and production costs in the 1990s led to a critical strategic shift, demonstrating a commitment to staying competitive.
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What is the Timeline of Key Events for Kone?
The kone company history is a narrative of consistent growth and strategic adaptation, beginning with its founding in Helsinki, Finland, in 1910 as Osakeyhtiö Kone Aktiebolag. The company quickly moved into manufacturing and installing its own elevators by 1918, marking a significant step in its kone origins. A pivotal moment in its kone establishment occurred in 1924 when Harald Herlin acquired the company, setting it on a path as an independent entity. The kone journey saw its first international expansion in 1957 with a subsidiary in Sweden, followed by a substantial increase in volume and Nordic market leadership after acquiring Asea's elevator business in 1968. The United States market entry in 1981 through the acquisition of Armor Elevator Co. further solidified its global presence. The period between 1993 and 1995 was characterized by divesting non-core businesses to sharpen its focus on elevators and escalators, a strategy bolstered by the 1994 acquisition of Montgomery Elevator Company, significantly enhancing its North American footprint. Key technological advancements, such as the introduction of KONE MonoSpace® and KONE EcoDisc® technologies in 1996, and the establishment of the high-speed elevator testing laboratory Tytyri in 1998, underscore its commitment to innovation. The demerger in 2005 into KONE Corporation and Cargotec marked a strategic realignment. By 2024, the company achieved annual net sales of EUR 11.1 billion, reflecting its extensive kone evolution and development. The announcement of its new 'Rise' strategy for 2025-2030 in September 2024 signals a continued focus on digital transformation, modernization, residential segment growth, and sustainability, aiming to cut carbon emissions significantly. The half-year sales growth of 2.9% to EUR 5,522.4 million reported in July 2025 further illustrates its ongoing momentum.
| Year | Key Event |
|---|---|
| 1910 | Founded as Osakeyhtiö Kone Aktiebolag in Helsinki, Finland, marking the kone beginnings. |
| 1918 | Began manufacturing and installing its own elevators, a key step in its kone development. |
| 1924 | Harald Herlin acquires KONE, establishing it as an independent company and a significant milestone in kone history. |
| 1957 | Established its first foreign subsidiary in Sweden, initiating its global kone journey. |
| 1966 | Opened a new, modern elevator factory in Hyvinkää, Finland, enhancing its manufacturing capabilities. |
| 1968 | Acquired Asea's elevator business, tripling its volume and becoming a Nordic market leader, a crucial part of its kone past. |
| 1981 | Entered the United States market by acquiring Armor Elevator Co., expanding its international reach. |
| 1993-1995 | Divested non-core businesses to focus on elevators and escalators, refining its business model. |
| 1994 | Acquired Montgomery Elevator Company, significantly boosting its North American presence and continuing its kone evolution. |
| 1996 | Introduced the revolutionary KONE MonoSpace® and KONE EcoDisc® technologies, showcasing its innovation. |
| 1998 | Opened the high-rise elevator testing laboratory Tytyri in Finland, capable of testing speeds up to 17 m/s. |
| 2005 | KONE Corporation demerged into two separate listed companies: KONE (elevators, escalators, building doors) and Cargotec (cargo handling). |
| 2010 | Celebrated its 100-year anniversary globally, marking a century of operation. |
| 2024 | Achieved annual net sales of EUR 11.1 billion, demonstrating substantial financial growth. |
| 2024 (September 19) | Announced its new ambitious 'Rise' strategy for 2025-2030, outlining future growth plans. |
| 2025 (July 18) | Reported half-year sales growth of 2.9% to EUR 5,522.4 million, with orders growing by 2.9%. |
'Rise' Strategy for 2025-2030
This strategy focuses on leading in employee and customer experience, sustainability, innovation, growth, and profitability. It aims to accelerate digital transformation for services and drive modernization opportunities.
Key Strategic Shifts
The strategy emphasizes four key shifts: accelerating digital transformation for service, driving modernization opportunities, winning in the residential segment, and significantly cutting carbon emissions. This approach is designed to deliver enhanced customer value.
Financial Projections for 2025
The company expects its sales to grow between 2% and 5% at comparable exchange rates in 2025. The adjusted EBIT margin is projected to be between 11.8% and 12.4% for the same period.
KONE Renaissance Program
The company is actively pursuing its KONE Renaissance program, a research and co-innovation ecosystem. This initiative aims to revive the built environment with sustainable solutions by the year 2030.
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