Brown, Boveri & Cie
Encyclopedia
Brown, Boveri & Cie was a Swiss group of electrical engineering
Electrical engineering
Electrical engineering is a field of engineering that generally deals with the study and application of electricity, electronics and electromagnetism. The field first became an identifiable occupation in the late nineteenth century after commercialization of the electric telegraph and electrical...

 companies.

It was founded in Baden, Switzerland
Baden, Switzerland
Baden is a municipality in the Swiss canton of Aargau, on the west bank of the river Limmat, located in the Limmat Valley , northwest of Zürich. It is the seat of the district of Baden...

, in 1891 by Charles Eugene Lancelot Brown
Charles Eugene Lancelot Brown
thumb|200pxCharles Eugene Lancelot Brown founded BBC Brown Boveri with Walter Boveri.He was born in Winterthur and was one of 6 children. His mother was Swiss and his father, a British engineer, was the founder of SLM - Schweizerische Lokomotiv- und Maschinenfabrik...

 and Walter Boveri who worked at the Maschinenfabrik Oerlikon. In 1970 BBC took over the Maschinenfabrik Oerlikon. In 1988 it merged with ASEA
ASEA
Allmänna Svenska Elektriska Aktiebolaget was a Swedish industry company. It merged with the Swiss Brown, Boveri & Cie in 1988 to form Asea Brown Boveri...

 to form ABB.

The company produced DC Motor
DC motor
A DC motor is an electric motor that runs on direct current electricity.-Brush:The brushed DC electric motor generates torque directly from DC power supplied to the motor by using internal commutation, stationary magnets , and rotating electrical magnets.Like all electric motors or generators,...

s, AC Motor
AC motor
An AC motor is an electric motor driven by an alternating current.It commonly consists of two basic parts, an outside stationary stator having coils supplied with alternating current to produce a rotating magnetic field, and an inside rotor attached to the output shaft that is given a torque by the...

s, generators
Electrical generator
In electricity generation, an electric generator is a device that converts mechanical energy to electrical energy. A generator forces electric charge to flow through an external electrical circuit. It is analogous to a water pump, which causes water to flow...

, steam turbine
Steam turbine
A steam turbine is a mechanical device that extracts thermal energy from pressurized steam, and converts it into rotary motion. Its modern manifestation was invented by Sir Charles Parsons in 1884....

s, gas turbine
Gas turbine
A gas turbine, also called a combustion turbine, is a type of internal combustion engine. It has an upstream rotating compressor coupled to a downstream turbine, and a combustion chamber in-between....

s, transfomers and the electrical equipments of locomotive
Locomotive
A locomotive is a railway vehicle that provides the motive power for a train. The word originates from the Latin loco – "from a place", ablative of locus, "place" + Medieval Latin motivus, "causing motion", and is a shortened form of the term locomotive engine, first used in the early 19th...

s. Some of BBC's technology went into German U-boat
U-boat
U-boat is the anglicized version of the German word U-Boot , itself an abbreviation of Unterseeboot , and refers to military submarines operated by Germany, particularly in World War I and World War II...

s of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, such as the depth controls.

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

Brown Boveri's early activities included manufacturing electrical components such as electric motor
Electric motor
An electric motor converts electrical energy into mechanical energy.Most electric motors operate through the interaction of magnetic fields and current-carrying conductors to generate force...

s for locomotives
Electric locomotive
An electric locomotive is a locomotive powered by electricity from overhead lines, a third rail or an on-board energy storage device...

 and power-generating equipment
Electrical generator
In electricity generation, an electric generator is a device that converts mechanical energy to electrical energy. A generator forces electric charge to flow through an external electrical circuit. It is analogous to a water pump, which causes water to flow...

 for Europe's railway systems. In 1919 the company entered into a licensing agreement with the British manufacturing firm Vickers
Vickers
Vickers was a famous name in British engineering that existed through many companies from 1828 until 1999.-Early history:Vickers was formed in Sheffield as a steel foundry by the miller Edward Vickers and his father-in-law George Naylor in 1828. Naylor was a partner in the foundry Naylor &...

 which gave the British firm the right to manufacture and sell Brown Boveri products throughout the British Empire
British Empire
The British Empire comprised the dominions, colonies, protectorates, mandates and other territories ruled or administered by the United Kingdom. It originated with the overseas colonies and trading posts established by England in the late 16th and early 17th centuries. At its height, it was the...

 and in some parts of Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

. The agreement gave Brown Boveri a significant amount of money and the promise of substantial annual revenue, and also helped the company expand into foreign markets at a time when protectionist
Protectionism
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...

 policies inhibited international expansion.

Activity in Continental Europe

In the early 1920s, Brown Boveri, already a geographically diversified company with successful operating subsidiaries in Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

, Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...

, and the Balkans, suffered losses due to the devaluation
Devaluation
Devaluation is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can be exchanged....

 of the French franc
French franc
The franc was a currency of France. Along with the Spanish peseta, it was also a de facto currency used in Andorra . Between 1360 and 1641, it was the name of coins worth 1 livre tournois and it remained in common parlance as a term for this amount of money...

 and the German mark
German mark
The Deutsche Mark |mark]], abbreviated "DM") was the official currency of West Germany and Germany until the adoption of the euro in 2002. It is commonly called the "Deutschmark" in English but not in German. Germans often say "Mark" or "D-Mark"...

. At the same time, in the Swiss domestic market, production costs increased while sales remained static, causing the company further losses. In 1924 Brown Boveri devalued its capital by 30 percent to cover the losses it had incurred. In 1927 the agreement with Vickers ran out and was not renewed.

Growth

During the same time, Brown Boveri's various subsidiaries grew rapidly. Industrialization throughout Europe created strong demand for the company's heavy electrical equipment. Italy's burgeoning railroad industry provided a particularly strong boost to Brown Boveri's Italian subsidiary, and the company's German facility actually did considerably more business than the Swiss parent. For the next few decades Brown Boveri grew as fast as technological developments in electrical engineering. Each of the company's subsidiaries tended to develop individually, as if it were a domestic company in the country in which it operated, and broad geographic coverage helped insulate the parent from severe crises when a certain region experienced economic difficulties.

After World War II

After World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, the Cold War
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...

 presented a variety of business opportunities for defense
Defense (military)
Defense has several uses in the sphere of military application.Personal defense implies measures taken by individual soldiers in protecting themselves whether by use of protective materials such as armor, or field construction of trenches or a bunker, or by using weapons that prevent the enemy...

-related electrical contractors, but Brown Boveri's subsidiaries were seen as foreign companies in many of the countries in which they operated, sometimes making it difficult for the company to win lucrative contracts involving sensitive technology and other government contracts. The company, nevertheless, excelled at power generation, including nuclear power
Nuclear power
Nuclear power is the use of sustained nuclear fission to generate heat and electricity. Nuclear power plants provide about 6% of the world's energy and 13–14% of the world's electricity, with the U.S., France, and Japan together accounting for about 50% of nuclear generated electricity...

 generators, and prospered in this field. Electrification in the Third World
Third World
The term Third World arose during the Cold War to define countries that remained non-aligned with either capitalism and NATO , or communism and the Soviet Union...

 also provided Brown Boveri with substantial profits.

Reorganization of Brown Boveri in 1970

In 1970 Brown Boveri 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
Latin America
Latin America is a region of the Americas where Romance languages  – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...

), and Brown Boveri International (the remaining facilities). Each of these groups was further broken down into five product divisions: power generation, electronics
Electronics
Electronics is the branch of science, engineering and technology that deals with electrical circuits involving active electrical components such as vacuum tubes, transistors, diodes and integrated circuits, and associated passive interconnection technologies...

, power distribution, traction equipment
Railway electrification system
A railway electrification system supplies electrical energy to railway locomotives and multiple units as well as trams so that they can operate without having an on-board prime mover. There are several different electrification systems in use throughout the world...

, 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
Rockwell International
Rockwell International was a major American manufacturing conglomerate in the latter half of the 20th century, involved in aircraft, the space industry, both defense-oriented and commercial electronics, automotive and truck components, printing presses, valves and meters, and industrial automation....

, the American manufacturer of high-tech military and aerospace
Aerospace
Aerospace comprises the atmosphere of Earth and surrounding space. Typically the term is used to refer to the industry that researches, designs, manufactures, operates, and maintains vehicles moving through air and space...

 applications, but the deal fell through when the two companies could not agree on financial terms. While Brown Boveri counted a handful of major U.S. customers as its clients, among them large utilities such as the Tennessee Valley Authority
Tennessee Valley Authority
The Tennessee Valley Authority is a federally owned corporation in the United States created by congressional charter in May 1933 to provide navigation, flood control, electricity generation, fertilizer manufacturing, and economic development in the Tennessee Valley, a region particularly affected...

 and American Electric, Brown Boveri's American market share was low considering the company's international standing (North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...

n sales accounted for only 3.5 percent of total sales in 1974 and 1975), and the company continued to search for a means of effectively entering U.S. markets.

Great Britain

During the electrification of the British West Coast Main Line
West Coast Main Line
The West Coast Main Line is the busiest mixed-traffic railway route in Britain, being the country's most important rail backbone in terms of population served. Fast, long-distance inter-city passenger services are provided between London, the West Midlands, the North West, North Wales and the...

 in the early 1970s, Brown Boveri traction insulators were used.

In 1974 Brown Boveri acquired the British controls and instrument manufacturer, George Kent. The deal at first raised concern in Britain over foreign ownership of such highly sensitive technology, but Brown Boveri prevailed with the encouragement of George Kent's rank-and-file employees, who feared the alternative of being bought by Britain's General Electric Company (GEC). The newly acquired company was renamed Brown Boveri Kent and made an excellent addition to the parent company's already diverse product line.

The Middle East and Africa

In the mid-1970s growing demand in the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...

 for large power-generating facilities distracted the company from its push into North America. Oil-rich Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...

n nations, like Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...

, attempting to diversify their manufacturing capabilities also created new markets for Brown Boveri's heavy electrical engineering expertise.

The 1980s

In the early 1980s Brown Boveri's sales flattened out and the company's earnings declined. In 1983 Brown Boveri's German subsidiary in Mannheim
Mannheim
Mannheim is a city in southwestern Germany. With about 315,000 inhabitants, Mannheim is the second-largest city in the Bundesland of Baden-Württemberg, following the capital city of Stuttgart....

, West Germany, which accounted for nearly half of the entire parent company's sales, rebounded. In spite of an increase in orders, the company's cost structure kept earnings down. In 1985 the subsidiary's performance improved as a result of cost-cutting measures but price decreases in the international market and unfavorable shifts in currency exchanges rates largely offset these gains. In 1986 the parent company acquired a significant block of shares in the Mannheim subsidiary, bringing its total stake to 75 percent.

Unification of research

In the later 1980s Brown Boveri took steps to reduce duplication of research and development among its various groups. While each subsidiary continued to do some product-development research for its individual market, theoretical research was unified under the parent company, making more efficient use of research funding.

Supercharger development

In 1987 the company introduced a supercharging
Supercharger
A supercharger is an air compressor used for forced induction of an internal combustion engine.The greater mass flow-rate provides more oxygen to support combustion than would be available in a naturally aspirated engine, which allows more fuel to be burned and more work to be done per cycle,...

 system for diesel engine
Diesel engine
A diesel engine is an internal combustion engine that uses the heat of compression to initiate ignition to burn the fuel, which is injected into the combustion chamber...

s called Comprex. This system was capable of increasing an engine's horsepower by 35 percent and delivering up to 50 percent more torque at lower speeds. The Japanese automaker Mazda
Mazda
is a Japanese automotive manufacturer based in Fuchū, Aki District, Hiroshima Prefecture, Japan.In 2007, Mazda produced almost 1.3 million vehicles for global sales...

 planned to use the new supercharger in its new diesel passenger models.

Merger

In 1988, Brown Boveri merged with the Swedish company ASEA
ASEA
Allmänna Svenska Elektriska Aktiebolaget was a Swedish industry company. It merged with the Swiss Brown, Boveri & Cie in 1988 to form Asea Brown Boveri...

 to form Asea Brown Boveri (ABB Group).

Electric

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