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Demag

From Alfawiki
Demag
Company typePublic (formerly)
IndustryHeavy machinery, industrial cranes, construction machinery, injection moulding machines
PredecessorMärkische Maschinenbau-Anstalt L. Stuckenholz AG, Duisburg Mechanical Engineering AG, Benrath Machine Works GmbH
Founded1910 in Duisburg, Germany
FounderConsolidation of three companies
FateSegmented and sold to various companies; brand continues in Demag Cranes & Components and Sumitomo (SHI) Demag
Headquarters
Duisburg (historically), Wetter an der Ruhr (Demag Cranes & Components GmbH)
,
Germany
Area served
Worldwide
ProductsIndustrial cranes (bridge cranes, hoists, overhead cranes, gantry cranes), excavators, locomotives, railway cars, armored military vehicles, hydraulic excavators, construction machinery, vehicle-mounted cranes, conveying systems, steel mill technologies, compressors, injection moulding machines
OwnerVarious over time: Mannesmann (1973), Siemens-Bosch partnership (2000), KKR (2001), Terex (2011), Konecranes (2017), Sumitomo Heavy Industries (for plastics machinery)
Number of employees
Approximately 250–300 employees in early years; varied over time
Websitewww.demagcranes.com

Demag (from the German Deutsche Maschinenbau-Aktiengesellschaft) was a prominent German industrial group specializing in heavy machinery, which has since been segmented into multiple companies. The Demag name endures through organizations such as Demag Cranes and Components and Sumitomo (SHI) Demag.

Before its formal establishment, the company operated as Märkische Maschinenbau-Anstalt, Ludwig A.-G starting in 1906, becoming the largest crane manufacturer in Germany with a workforce of approximately 250 to 300 employees. Its offerings included various types of industrial cranes like bridge cranes, hoists, overhead cranes, and gantry cranes. In 1910, the Deutsche Maschinenfabrik based in Duisburg adopted the Demag designation (currently known as Demag Cranes & Components GmbH).

The Mannesmann group took over Demag in 1973.

Founding

Demag was created in 1910 in Duisburg through the consolidation of three companies: Märkische Maschinenbau-Anstalt L. Stuckenholz AG, Duisburg Mechanical Engineering AG, and Benrath Machine Works GmbH.

The roots of Märkische Maschinenbau-Anstalt L. Stuckenholz AG trace back to Mechanische Werkstätten Harkort & Co., founded in 1819 in Wetter an der Ruhr, which had commenced crane production by 1840.

In 1908, Demag engineered the largest floating crane globally for Harland & Wolff in Belfast, which played a key role in building the ocean liners RMS Olympic and RMS Titanic.

Starting from 1925, Demag diversified into manufacturing excavators, locomotives, and railway cars. During World War II, its Berlin Staaken facility produced armored military vehicles, including the Bergepanther tank recovery vehicle. The company also developed halftrack military vehicles such as the unarmored Sd.Kfz. 10 artillery tractors and the armored Sd.Kfz. 250 series; over 6,600 units were produced by Demag and subcontractors.

Hydraulic era

In 1954, Demag introduced its first hydraulic excavators and rapidly broadened its portfolio to include construction machinery, vehicle-mounted cranes, conveying systems (such as workshop cranes and control apparatus), steel mill technologies—especially continuous casting equipment—compressors, and compressed air systems. Additionally, Demag emerged as a global frontrunner in manufacturing injection moulding machines.

As part of the Mannesmann group

In 1973, the Mannesmann conglomerate from Düsseldorf acquired Demag. A decade later, Mannesmann-Demag AG collaborated with Wean United, Inc. from Pittsburgh to establish Mannesmann Demag Wean Co., focusing on steelworking machinery production.

A strategic alliance with Japanese firm Komatsu resulted in spinning off large excavation equipment manufacturing into Komatsu Mining.

The Duisburg-based steel and rolling mill segment was divested to Schloemann-Siemag (SMS), currently operating under SMS group.

The compressor division was sold off in 1996 to CompAir—then part of British Siebe/Invensys—and subsequently became an independent entity.

In 1999, injection moulding operations merged with those of Krauss-Maffei, another Mannesmann acquisition, creating Mannesmann Demag Krauss Maffei under Mannesmann Atecs—a holding company for non-telecommunications businesses. Krauss Maffei’s general equipment and defense sectors were later transferred to Linke/Hoffmann/Busch. The holding was renamed Mannesmann Plastics Machinery (MPM), comprising divisions such as Demag Plastics and Krauss-Maffei.

Dissolution following Vodafone's takeover of Mannesmann

In February 2000, Vodafone completed its acquisition of Mannesmann.

Mannesmann’s industrial sectors were consolidated under Atecs to clearly distinguish them from telecommunications operations and subsequently sold to a Siemens-Bosch partnership. Siemens and Bosch then divided these units; Demag’s operations—including plastics technology (in collaboration with Krauss-Maffei), compressor technology, and conveyor technology (covering mobile cranes and Gottwald cranes)—were incorporated into Siemens.

Restructuring, acquisitions, and divestitures by KKR

During the fall of 2001, Siemens divested the core segments of the former Demag business (Demag Cranes & Components, Gottwald, and MPM) to Kohlberg Kravis Roberts (KKR). The remaining divisions were restructured with an emphasis on future development; for instance, conveying engineering activities remained with Siemens under the Dematic brand. In 2002, Siemens sold the Demag Mobile Cranes division—excluded from the KKR transaction—to US-based Terex.

KKR restructured Demag Crane & Components, concentrating production on Overhead cranes, hoists, Gantry cranes, and Portal cranes marketed under the Gottwald name. In 2006, KKR merged Demag Cranes and Gottwald to form Demag Cranes AG and subsequently took it public.

By 2011, Terex had acquired an 82% stake in Demag Cranes AG, integrating the company into its Material Handling & Port Solutions (MHPS) division.

Current status of Demag

In 2008, KKR sold MPM to Sumitomo Heavy Industries, which now operates as Sumitomo (SHI) Demag.

In 2019, Terex divested its Mobile Cranes division to Japan-based Tadano, creating Tadano Demag GmbH. Following insolvency proceedings in 2020 and subsequent restructuring, Tadano announced in 2021 it would retire the Demag brand.

In 2017, Finland’s Konecranes purchased Terex's MHPS division, bringing ownership back to Europe and reviving the Demag brand as Demag Cranes & Components GmbH.

Key milestones

  • 1819: Mechanische Werkstätten Harkort & Co. established in Wetter an der Ruhr; Ludwig Stuckenholz’s company produces its first steam-powered crane—now part of Demag Cranes & Components GmbH.
  • 1840: Full-scale production of overhead cranes begins in Germany under Demag Cranes & Components.
  • 1906: Maschinenfabrik Ernst Halbach AG founded in Düsseldorf; currently Gottwald Port Technology GmbH.
  • 1910: Successor firms to Mechanische Werkstätten Harkort & Co. merge into Deutsche Maschinenfabrik AG; Demag initiates electric motor hoist manufacturing.
  • 1956: Leo Gottwald KG develops the first mobile harbor crane.
  • 1969: Introduction of the first AC motor with sliding rotor on cranes by Demag in the US market.
  • 1988: Mannesmann acquires Leo Gottwald KG and integrates it into Mannesmann Demag AG.
  • 1992: Mannesmann Demag Group undergoes restructuring; Mannesmann Demag Fördertechnik AG is spun off in Wetter.
  • 1996: Mannesmann Demag Fördertechnik AG acquires Mobile Cranes segment from Mannesmann Demag AG Duisburg.
  • 1997: Mannesmann Demag Fördertechnik AG renamed as Mannesmann Dematic AG.
  • 2000: Mannesmann Dematic becomes part of Atecs Mannesmann AG Group; Demag Cranes & Components GmbH is spun off; Vodafone acquires Mannesmann; Siemens AG and Robert Bosch GmbH acquire Atecs Mannesmann; mechanical engineering division remains within Siemens Group.
  • 2002: Acquisition of Demag Cranes & Components GmbH and Gottwald Port Technology GmbH by Demag Holding S.à r.l (KKR holds 81%, Siemens AG retains 19%).
  • 2005: Launch of the first "Smart hoist" with self-diagnostic functionality by Demag Crane & Components Corp.
  • 2006: Consolidation of Demag Cranes & Components GmbH and Gottwald Port Technology GmbH under Demag Cranes AG; IPO held on June 23.
  • 2010: Receipt of first industry certification from HMI by Demag.
  • 30 June 2011: Terex acquires a majority stake (67%) in Demag Cranes.
  • 2017: Finnish company Konecranes acquires Demag Overhead division (Wetter) and Gottwald Port Cranes from Terex; rebrands as Demag Cranes & Components GmbH.
  • 2019: Japanese firm Tadano purchases Demag Mobile Cranes business from Terex; renamed Tadano Demag GmbH.
  • 2020: Konecranes finalizes acquisition of MHE-Demag by obtaining Jebsen & Jessen’s share.

External links

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