KONE

KONE is a Finnish engineering and building-technology company whose name is closely associated with elevators, escalators and the movement of people within buildings. The company was established in 1910 as a subsidiary of Gottfr. Strömberg to import and sell Graham Brothers elevators. After ending that licensing arrangement, KONE began manufacturing and installing its own elevators in Finland in 1918. Entrepreneur Harald Herlin acquired the company in 1924, beginning the Herlin family's long association with its ownership and governance. KONE's early development was shaped by Finnish industrialization and postwar reconstruction. During the Second World War and the subsequent Finnish war-reparations program, the company supplied elevators, electric hoists and cranes for delivery to the Soviet Union. The demanding production requirements helped KONE expand manufacturing capacity and improve its industrial processes. During the 1950s, it introduced group-control systems, automatic elevator doors and hydraulic elevators. Its first foreign subsidiary, in Sweden, was established in 1957, providing a foundation for later international growth. From the 1960s through the 1980s, KONE expanded through new factories, international subsidiaries and acquisitions. It entered the United States elevator market in 1981 through the purchase of Armor Elevator Company and subsequently acquired or developed businesses in Canada, Europe, Australia, New Zealand and other regions. For a period, the company operated well beyond elevators and escalators, with activities involving cranes, hoists, shipboard cargo equipment, forest machinery, mining equipment, conveyors, piping systems and electronic medical equipment. The acquisition of Partek in 2002 temporarily enlarged this industrial portfolio further. The company later refocused on people-flow and building-access businesses. Its non-core operations were progressively sold or separated, including the businesses that became Cargotec Corporation. In 2005, the demerger of KONE's elevator, escalator and building-door operations from Kone Cargotec created two separately listed companies. KONE continued as the building-technology business, while Cargotec became the separately listed materials-handling company. Technology has been central to KONE's modern positioning. The EcoDisc permanent-magnet hoisting machine and MonoSpace machine-room-less elevator concept helped reduce machinery requirements and energy consumption. KONE was an early large-scale promoter of machine-room-less elevator systems, which place the principal machinery within the hoistway rather than in a separate machine room. In 2007, the company announced that it would discontinue hydraulic-elevator production and concentrate on traction technology, citing energy efficiency, oil-contamination and installation-related considerations. In 2013, it introduced UltraRope, a carbon-fiber-based elevator-rope technology intended to support substantially greater travel heights than conventional steel ropes while reducing mass and cable sway. Today, KONE's business spans new-equipment sales, installation, maintenance, repair, modernization and digital monitoring. Its offerings include elevators for residential, commercial, public-transit and high-rise environments; escalators and moving walkways; automatic doors and gates; and systems intended to improve traffic flow, accessibility, safety and energy performance. Because a large installed base requires recurring service, maintenance and modernization are important parts of the business model. KONE serves customers such as property developers, building owners, contractors, architects, infrastructure operators and facility managers. KONE remains controlled by the Herlin family through ownership and voting arrangements, while its shares are traded in Helsinki. The company has developed from a Finnish elevator importer and manufacturer into a global people-flow technology group, with sustainability,…

KONE was formed in 1910 as Osakeyhtiö Kone Aktiebolag, a subsidiary of Finnish electrical and engineering company Gottfr. Strömberg. Its initial business involved importing Graham Brothers elevators. After the license ended in 1917, KONE began producing and installing elevators itself in 1918. Harald Herlin purchased the company from Strömberg in 1924 and established the Herlin family's enduring influence over its ownership and governance. His son Heikki H. Herlin joined the business in the late 1920s, became president in 1932 and guided the company through a period of industrial expansion. The postwar Finnish reparations program required KONE to manufacture elevators, hoists and cranes for delivery to the Soviet Union. This accelerated the development of production capacity and industrial discipline. During the 1950s, KONE introduced group controls, automatic doors and hydraulic elevators. Internationalization began with the establishment of a Swedish subsidiary in 1957. Pekka Herlin, who had joined the company in the 1950s, became president in 1964. KONE opened a major elevator factory at Hyvinkää in 1966 and was listed on the Helsinki stock exchange in 1967. It then expanded through acquisitions in Scandinavia, Europe and North America. The company entered the United States in 1981 by acquiring Armor Elevator Company and later expanded its North American presence through Montgomery Elevator. Other acquisitions and alliances broadened KONE's geographic reach and technical capabilities. During this era, KONE also operated businesses in cranes, hoists, shipboard cargo equipment, forestry, mining, conveyors, piping and specialized industrial components. Under Antti Herlin, who became chief executive in 1996, KONE increasingly emphasized elevator technology and energy efficiency. The EcoDisc permanent-magnet motor and MonoSpace machine-room-less concept were important developments. By reducing or eliminating the need for a separate machinery room, these systems changed the design possibilities for many buildings and became a significant part of KONE's technology identity. The company also expanded in China, including investment in an elevator and escalator factory in Kunshan. KONE's diversification was subsequently reversed. It sold or separated shipboard cargo, crane, forest machinery, tractor, foundry and medical-equipment operations. The 2002 acquisition of Partek brought tractor, forest-machine, container-handling and load-handling businesses into the group, but these activities were reorganized. The tractor business was sold to AGCO, while the remaining materials-handling activities were developed into Kone Cargotec. A demerger approved in 2004 and completed in 2005 created two separately listed companies: KONE Corporation, focused on elevators, escalators and building doors, and Cargotec Corporation, focused on cargo and materials handling. The 2000s also brought legal and regulatory difficulties. In 2007, the European Commission fined KONE and several competitors for cartel activity involving elevator and escalator markets in four European countries. KONE appealed the amount of its fine. In the same period, the company announced that it would stop producing hydraulic elevators and concentrate on traction elevators, citing energy efficiency and environmental concerns. KONE continued to expand its service network and modernization business through regional acquisitions. It entered or strengthened positions in markets including the United States, Israel, East Africa and the United Kingdom. In 2013, it introduced UltraRope, using a carbon-fiber core to reduce the weight and oscillation of elevator ropes in very tall buildings. The technology extended KONE's high-rise engineering proposition beyond conventional steel-rope systems. Leadership transitioned again in the 2010s. Antti Herlin became chairman in 2003 after the death of Pekka Herlin. Matti Alahuhta, formerly associated with Nokia, became KONE's chief executive in 2006 and was succeeded by Henrik Ehrnrooth in 2014. KONE has since continued to develop connected equipment, predictive maintenance, digital customer services and lower-energy mobility systems. Its contemporary business combines new installations with a substantial recurring service and modernization base, serving buildings and infrastructure in markets around the world.

1. 2013UltraRope launched

   KONE introduced carbon-fiber-based rope technology for very high-rise elevators.

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2. 2007Ends hydraulic-elevator production

   KONE announced a transition to an all-traction elevator portfolio.

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3. 2005KONE and Cargotec demerge

   The elevator and building-door business was separated from the materials-handling operations into two listed companies.

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4. 2002Acquires Partek

   The acquisition expanded KONE's industrial portfolio into materials handling, tractors and forest machinery.

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5. 1996MonoSpace and EcoDisc technologies introduced

   KONE introduced its MonoSpace machine-room-less elevator concept and EcoDisc hoisting technology.

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6. 1981Enters the United States

   KONE entered the American elevator market through the acquisition of Armor Elevator Company.

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7. 1967Listed in Helsinki

   KONE shares began trading on the Helsinki stock exchange.

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8. 1966Hyvinkää factory opens

   KONE opened a new elevator factory in Hyvinkää, Finland.

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9. 1957First foreign subsidiary established

   KONE established AB Kone Hissar in Sweden.

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10. 1924Harald Herlin acquires KONE

    Harald Herlin purchased KONE, beginning the Herlin family's long-term control of the company.

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11. 1918Begins manufacturing and installing elevators

    After ending its original licensing arrangement, KONE began making and installing its own elevators.

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12. 1910Company founded

    Osakeyhtiö Kone Aktiebolag was established as a subsidiary of Gottfr. Strömberg to import elevators.

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A global, technology-led people-flow and building-access company emphasizing safety, reliability, energy efficiency, high-rise mobility, lifecycle services and connected building systems.

• KONE MonoSpaceMachine-room-less elevators1996

  MonoSpace is KONE's machine-room-less elevator concept. It integrates the hoisting machinery into the elevator shaft, reducing the space and construction requirements associated with a separate machine room. The concept is used across several building types and has been developed around energy efficiency, compact installation and suitability for modernization and new construction.

• KONE EcoDiscElevator hoisting technology1996

  EcoDisc is KONE's permanent-magnet motor and hoisting-machine technology. It was designed to provide a compact traction solution with lower energy requirements than many conventional systems. EcoDisc became a foundation for KONE's machine-room-less elevator architecture and has been incorporated into products serving residential, commercial and other building applications.

• KONE UltraRopeHigh-rise elevator technology2013

  UltraRope uses a carbon-fiber-based core and a specialized coating rather than relying solely on conventional steel rope. Its lower mass is intended to improve the feasibility of very tall elevator travel, reduce energy consumption and limit cable sway. The technology is aimed particularly at high-rise and supertall buildings where rope weight and oscillation become major engineering constraints.

• KONE escalators and autowalksPeople-flow equipment

  KONE supplies escalators and moving walkways, which the company commonly calls autowalks. These systems are used in commercial buildings, airports, rail stations, metro systems and other high-traffic environments. The portfolio covers new installations as well as maintenance, safety upgrades, controls modernization and replacement of aging equipment.

• KONE automatic doors and gatesBuilding access systems

  KONE's automatic doors and gates extend its people-flow offering beyond vertical transportation. Products support entrances, internal circulation, accessibility and controlled movement in commercial, public and residential buildings. The business includes equipment supply, installation, service and modernization.

• KONE maintenance and modernization servicesLifecycle services

  KONE maintains, repairs and modernizes elevators, escalators, autowalks and doors from its own installed base and, in many markets, equipment made by other manufacturers. Services include inspections, replacement of controls and drives, equipment upgrades, connectivity and remote monitoring. This lifecycle activity supports recurring customer relationships after the initial installation.

• 2014Sustainability and green-company positioning

  Global

  KONE promoted its energy-efficiency and environmental performance credentials through its product portfolio and corporate sustainability communications. Newsweek's 2014 Green Rankings placed KONE among the highest-ranked companies in the assessment.

  Outcome. The ranking strengthened KONE's public positioning as an environmentally oriented industrial technology company.

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• 2013Launch UltraRopeProduct launch

  Very tall buildings face limits from the weight, elongation and sway of conventional steel elevator ropes.

  What changed. KONE introduced UltraRope, a carbon-fiber-based elevator-rope technology intended for high-rise travel of up to approximately one kilometer.

  Aftermath. UltraRope became a central part of KONE's high-rise technology proposition and was associated with planned supertall-building applications.

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• 2007Move away from hydraulic elevatorsStrategy

  KONE cited the energy consumption of hydraulic systems, concerns about hydraulic oil and buried cylinders, and broader environmental considerations.

  What changed. The company announced that it would stop producing hydraulic elevators and concentrate on traction-based systems, including machine-room-less products.

  Aftermath. KONE became a major elevator manufacturer focused exclusively on traction technology, reinforcing its energy-efficiency and machine-room-less positioning.

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• 2005Separate the elevator business from materials handlingStrategy

  The acquisition of Partek had made KONE's industrial portfolio broad and complex, while the elevator, escalator and building-door operations had different customers and strategic priorities from cargo and materials handling.

  What changed. KONE completed a demerger that created KONE Corporation as the people-flow company and Cargotec Corporation as the separately listed materials-handling company.

  Aftermath. The separation enabled KONE to focus on elevators, escalators, automatic doors, maintenance and modernization while Cargotec continued with cargo and load-handling activities.

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• 2007European elevator and escalator cartelControversy

  The European Commission found KONE and three major competitors involved in coordinated anti-competitive conduct in Belgium, Germany, Luxembourg and the Netherlands during the investigated period from 1995 to 2004. The companies received substantial fines, and KONE appealed the size of its penalty.

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• 2014Henrik Ehrnrooth succeeds Matti Alahuhta as chief executive

  KONE appointed CFO Henrik Ehrnrooth as president and chief executive officer after Matti Alahuhta stepped down.

  Leadership change
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• 2013KONE introduces UltraRope high-rise elevator technology

  KONE launched a carbon-fiber-based elevator-rope technology designed to reduce rope weight and sway and enable substantially taller elevator travel.

  Product launchProduct generation
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• 2007KONE announces the end of hydraulic-elevator production

  The company announced a shift away from hydraulic elevators toward traction-based machine-room-less systems, citing energy use and environmental considerations.

  Product generation
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• 2003Antti Herlin becomes chairman

  Following the death of Pekka Herlin, Antti Herlin was appointed chairman of KONE's board, continuing the Herlin family's long governance relationship with the company.

  Leadership change
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1. Kone
2. KONE official website