Nordstjernan
Encyclopedia
Nordstjernan is a Swedish investment company. Nordstjernan is a fourth-generation family company controlled by the Axel and Margaret Ax:son Johnson Foundation. The origin is the shipping company Nordstjernan, which was founded in 1890.
By the start of the twentieth century, Axel Johnson was already a leading shipowner in Sweden
and a pioneer of regular traffic to South America, with the La Plata route. It was Axel Johnson's final business transaction that put Nordstjernan on the map. He managed to break the international coffee
monopoly, "the coffee conference", a strictly controlled pricing cartel for the transportation of coffee to Europe. Axel Johnson built, thanks to his talent, will and ambition, combined with favourable external factors, the company that was to form the basis of the Johnson Group, and which was later developed by his son, Axel Ax:son Johnson (1876-1958).
on competitors meant the ability to open new routes, particularly the Pacific Lines to the west coasts of North and South America via the Panama Canal
. In 1924, he launched stainless steel
in Sweden and, in 1928, he had Sweden's first oil refinery
built in Nynäshamn
.
The diversification and expansion of the Johnson Group was guided by the integration principle. The aim was to make the Group self-sufficient in goods and services. The trading house took care of the sales (steel) and purchases (coal) for Avesta Jernverk, the shipping company was partially formed to take care of the trading house's transport requirements, the oil refinery supplied the vessels of the shipping company with oil and the Swedish roads with asphalt
. The investments formed the core of the empire, which comprised a hundred companies at the time of his death. The Consul-General left behind him Sweden's largest individually controlled group of companies.
Under the leadership of the Mining Engineer, the computer company Datema was started and connections with the Soviet Union
were developed and increased. In 1918, Johnson had become the first foreign company to sign a trade agreement with the new communist government. The Johnson Group gradually became one of the Soviet Union's largest single trading partners.
At the beginning of the 1960s, Nordstjernan was expanded and internationalized, like the rest of Swedish industry. This was a consequence of the head-start achieved because Sweden was not involved in World War II
. New markets opened up and trade was liberalized. Nordstjernan evolved into a vast conglomerate
. The crisis experienced by Sweden in the 1970s was reflected in all of Nordstjernan's sectors. Long-term structural changes and economic cycles caused major losses in most of the businesses operated by the Group - shipping, engineering, oil and steel. The 1970s crisis forced Nordstjernan to break with the sacred principle of complete independence and the listing of the company began to be discussed with the aim of gaining access to external venture capital.
In 1981, Bo Ax:son Johnson (1917-1997) took over his brother's earlier assignments and functions in the Johnson Group, with the exception of those taken over by Axel's daughter Antonia Ax:son Johnson (1943- ), A. Johnson & Co and A. Johnson & Co Inc (now the Axel Johnson Group
).
Bo Ax:son Johnson began what is called a "cultural revolution
" and implemented major changes in Nordstjernan's operations. This meant investment in one core business, the construction sector, which constituted about 30 percent of Nordstjernan's sales in 1985, and was a sector in which the Group had long had an interest in the form of wholly owned companies, including Strå Kalkbruk (1915), Nya Asfalt (1928) and Svenska Väg (1930).
The structural transformation and concentration into one core operation is something of a record in Swedish industry. Some 180 companies and legal entities were sold in the ensuing years. No fewer than five companies were listed on the stock market in the process, including Avesta Jernverk (1987), Databolin (1987), Silja Line
(1990), NK
(1987 and 1997) and Linjebuss (1992). This streamlining process created the opportunities for NCC
, the construction and real estate company, to expand. This company was originally listed as Nordstjernan, but changed its name to NCC following the acquisition of ABV in 1988.
In the 1980s, Nordstjernan was transformed from a closed family company and industrial conglomerate to become a listed Nordic construction and real estate company - NCC. Following the acquisition of SIAB in spring 1997, which was Bo Ax:son Johnson's last business transaction, the aim of becoming the largest, market-leading construction company in the Nordic region had been realized. Nordstjernan remains the principal owner of NCC.
and management team was appointed. Today, the main investment of Nordstjernan is NCC, the second largest construction company in Northern Europe.
The first generation
The founder, Axel Johnson (1844-1910), was a businessman of his time and built up capital through knowledgeable share-trading. In 1890, he formed the Nordstjernan shipping company, which expanded rapidly. His business acumen, combined with personal contacts among the economic elite, meant that there were prerequisites for the development of the business concept in combination with a favourable level of financing.By the start of the twentieth century, Axel Johnson was already a leading shipowner in Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
and a pioneer of regular traffic to South America, with the La Plata route. It was Axel Johnson's final business transaction that put Nordstjernan on the map. He managed to break the international coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
monopoly, "the coffee conference", a strictly controlled pricing cartel for the transportation of coffee to Europe. Axel Johnson built, thanks to his talent, will and ambition, combined with favourable external factors, the company that was to form the basis of the Johnson Group, and which was later developed by his son, Axel Ax:son Johnson (1876-1958).
The second generation
Axel Ax:son Johnson, or the Consul-General as he called himself, took over from his father in 1910, aged 34. New technology was introduced and old technology was sold before anyone else understood that it had become out-dated, such as the sale of steam vessels and the purchase of diesel-driven ships. Slightly more than 20 years later, in 1936, the Johnson Group was an exponent of modern Sweden. The Consul-General , who was described as "a collector of synergies," already had three major industrial deeds behind him by that time. At the start of the 1920s, Nordstjernan had the world's first diesel-driven ocean-going fleet and the head-startHead start (positioning)
In positioning, a head start is a start in advance of the starting position of others in competition, or simply toward the finish line or desired outcome...
on competitors meant the ability to open new routes, particularly the Pacific Lines to the west coasts of North and South America via the Panama Canal
Panama Canal
The Panama Canal is a ship canal in Panama that joins the Atlantic Ocean and the Pacific Ocean and is a key conduit for international maritime trade. Built from 1904 to 1914, the canal has seen annual traffic rise from about 1,000 ships early on to 14,702 vessels measuring a total of 309.6...
. In 1924, he launched stainless steel
Stainless steel
In metallurgy, stainless steel, also known as inox steel or inox from French "inoxydable", is defined as a steel alloy with a minimum of 10.5 or 11% chromium content by mass....
in Sweden and, in 1928, he had Sweden's first oil refinery
Oil refinery
An oil refinery or petroleum refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas...
built in Nynäshamn
Nynäshamn
- References :...
.
The diversification and expansion of the Johnson Group was guided by the integration principle. The aim was to make the Group self-sufficient in goods and services. The trading house took care of the sales (steel) and purchases (coal) for Avesta Jernverk, the shipping company was partially formed to take care of the trading house's transport requirements, the oil refinery supplied the vessels of the shipping company with oil and the Swedish roads with asphalt
Asphalt
Asphalt or , also known as bitumen, is a sticky, black and highly viscous liquid or semi-solid that is present in most crude petroleums and in some natural deposits, it is a substance classed as a pitch...
. The investments formed the core of the empire, which comprised a hundred companies at the time of his death. The Consul-General left behind him Sweden's largest individually controlled group of companies.
The third generation
The Consul-General's oldest son, Mining Engineer Axel Ax:son Johnson (1910-1988), took over the reins and the further development of the Group. Nordstjernan became a pioneer in container transport. In this, the Mining Engineer was following the traditional Johnson principle, which was self-sufficiency through integration. Fruit companies were purchased, later becoming SABA in cooperation with Saléns, in order to fill the space in newly built refrigerated (reefer) vessels.Under the leadership of the Mining Engineer, the computer company Datema was started and connections with the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
were developed and increased. In 1918, Johnson had become the first foreign company to sign a trade agreement with the new communist government. The Johnson Group gradually became one of the Soviet Union's largest single trading partners.
At the beginning of the 1960s, Nordstjernan was expanded and internationalized, like the rest of Swedish industry. This was a consequence of the head-start achieved because Sweden was not involved in 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...
. New markets opened up and trade was liberalized. Nordstjernan evolved into a vast conglomerate
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
. The crisis experienced by Sweden in the 1970s was reflected in all of Nordstjernan's sectors. Long-term structural changes and economic cycles caused major losses in most of the businesses operated by the Group - shipping, engineering, oil and steel. The 1970s crisis forced Nordstjernan to break with the sacred principle of complete independence and the listing of the company began to be discussed with the aim of gaining access to external venture capital.
In 1981, Bo Ax:son Johnson (1917-1997) took over his brother's earlier assignments and functions in the Johnson Group, with the exception of those taken over by Axel's daughter Antonia Ax:son Johnson (1943- ), A. Johnson & Co and A. Johnson & Co Inc (now the Axel Johnson Group
Axel Johnson Group
The Axel Johnson Group is a Swedish fourth-generation family-owned company. It traces its origins to the trading company A. Johnson & Co, founded in 1873. The Group consists of four legally and financially independent groups with a common owner, Antonia Ax:son Johnson and her family...
).
Bo Ax:son Johnson began what is called a "cultural revolution
Cultural Revolution
The Great Proletarian Cultural Revolution, commonly known as the Cultural Revolution , was a socio-political movement that took place in the People's Republic of China from 1966 through 1976...
" and implemented major changes in Nordstjernan's operations. This meant investment in one core business, the construction sector, which constituted about 30 percent of Nordstjernan's sales in 1985, and was a sector in which the Group had long had an interest in the form of wholly owned companies, including Strå Kalkbruk (1915), Nya Asfalt (1928) and Svenska Väg (1930).
The structural transformation and concentration into one core operation is something of a record in Swedish industry. Some 180 companies and legal entities were sold in the ensuing years. No fewer than five companies were listed on the stock market in the process, including Avesta Jernverk (1987), Databolin (1987), Silja Line
Silja Line
Silja Line is a Finnish cruiseferry brand operated by the Estonian ferry company AS Tallink Grupp, for car and passenger traffic between Finland and Sweden. The former company Silja Oy – today Tallink Silja Oy – is a subsidiary of Tallink Grupp, handling marketing and sales for Tallink and Silja...
(1990), NK
NK
NK may refer to:*Nagorno-Karabakh*Natural killer cell*Neturei Karta, a group of anti-zionist orthodox Jews*New Kingdom*North Korea*Northrup-King Seed Company*Nippon Kaiji Kyokai*Nordiska Kompaniet, a department store in Stockholm, Sweden...
(1987 and 1997) and Linjebuss (1992). This streamlining process created the opportunities for NCC
Nordic Construction Company
NCC AB is a Swedish construction company, the second largest in the Nordic region with annual revenues of 49 billion Swedish krona and about 17,000 employees.-History:...
, the construction and real estate company, to expand. This company was originally listed as Nordstjernan, but changed its name to NCC following the acquisition of ABV in 1988.
In the 1980s, Nordstjernan was transformed from a closed family company and industrial conglomerate to become a listed Nordic construction and real estate company - NCC. Following the acquisition of SIAB in spring 1997, which was Bo Ax:son Johnson's last business transaction, the aim of becoming the largest, market-leading construction company in the Nordic region had been realized. Nordstjernan remains the principal owner of NCC.
The fourth generation
Following the death of Bo Ax:son Johnson in 1997, the two cousins Antonia Ax:son Johnson (1943-) and Viveca Ax:son Johnson (1963-) took over the responsibility of Nordstjernan. A new Board of DirectorsBoard of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
and management team was appointed. Today, the main investment of Nordstjernan is NCC, the second largest construction company in Northern Europe.