Brown, Boveri & Cie

Brown, Boveri & Cie. (Brown, Boveri & Company; BBC) was a Swiss group of electrical engineering companies. It was founded in Baden bei Zürich,[1] in 1891 by Charles Eugene Lancelot Brown and Walter Boveri who worked at the Maschinenfabrik Oerlikon. In 1988 BBC merged with ASEA to form ABB.[2]

Early history of BBC Brown Boveri

BBC Brown Boveri was established in 1891. The company was one of only a few multinational corporations to operate subsidiaries that were larger than the parent company. Because of the limitations of the Swiss domestic market, Brown Boveri established subsidiaries throughout Europe relatively early in its history, and at times had difficulty maintaining managerial control over some of its larger operating units. The merger with ASEA, a company which was praised for its strong management, was expected to help Brown Boveri reorganize and reassert control over its vast international network.

Activity in Britain

Reorganization of Brown Boveri in 1970

In 1970 Brown Boveri acquired Maschinenfabrik Oerlikon [2] and began an extensive reorganization. The company's subsidiaries were divided into five groups: German, French, Swiss, "medium-sized" (seven manufacturing bases in Europe and Latin America), and Brown Boveri International (the remaining facilities). Each of these groups was further broken down into five product divisions: power generation, electronics, electric power distribution, traction equipment, and industrial equipment.

The United States

Throughout the 1970s, Brown Boveri struggled to expand into the US market. The company negotiated a joint venture with Rockwell, the American manufacturer of high-tech military and aerospace applications, but the deal collapsed when the two companies could not agree on financial terms. Brown Boveri had a handful of major U.S. customers as its clients, among them large utilities such as the Tennessee Valley Authority and American Electric Power's Nuclear Plant in southwest Michigan DC Cook Unit 2 steam turbine. Brown Boveri's American market share was low considering the company's international standing (North American sales accounted for only 3.5% of total sales in 1974 and 1975), and the company continued to seek entry into U.S. markets.

Great Britain

During the electrification of the British West Coast Main Line in the early 1970s, Brown Boveri traction insulators were used.

In July 1974, Brown Boveri offered to buy 53% of British controls and instrument manufacturer, George Kent, Limited. The deal at first raised concern in Britain over foreign ownership of such highly sensitive technology although the Brown Boveri offer proposed moving George Kent's scientific and medical business into a separate company. In September 1974, the General Electric Company (GEC) put in a counter offer and the British Government and The Rank Organisation, who together had a large shareholding in George Kent, preferred the GEC offer and signified their intent to accept it. Brown Boveri prevailed after reducing their proposed participation to 49% of George Kent and increasing their cash injection, together with the encouragement of George Kent's rank-and-file employees, who feared the alternative of being bought by GEC. The newly acquired company was renamed Brown Boveri Kent with The Rank Organisation holding an almost 9% interest in the expanded group.[6]

The Middle East and Africa

In the mid-1970s growing demand in the Middle East for large power-generating facilities distracted the company from its push into North America. Oil-rich African nations, like Nigeria, attempting to diversify their manufacturing capabilities also created new markets for Brown Boveri's heavy electrical engineering expertise.

industry	Electrical engineering
founded	1891
defunct	1 January 1988 (merged with ASEA to form ABB)
fate	Merged with ASEA to form ABB
successor	ABB
hq location country	Switzerland

Brown, Boveri & Cie

Early history of BBC Brown Boveri

Activity in Britain

Activity in Continental Europe

Growth

Nazi era 1933-1945

After World War II

Reorganization of Brown Boveri in 1970

The United States

Great Britain

The Middle East and Africa

The 1980s

Unification of research

Supercharger development

Merger

Locomotives and railcars

Electric

Gas turbine

Trams

Gallery

See also

External links

References