Norsk Jernverk - Fra Planlegging Til Moderne Industri

Norsk Jernverk has a rich history that spans from planning to modern industry. The company was founded in 1916, with the goal of establishing a large-scale ironworks in Norway.

The first ironworks was established in 1917, marking the beginning of Norsk Jernverk's journey. This was a significant milestone in the company's history, as it paved the way for future growth and development.

Norsk Jernverk's early years were marked by rapid expansion and modernization. The company invested heavily in new technology and equipment, which enabled it to increase production and reduce costs.

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In 1940, the Norwegian government was heavily involved in planning a Norwegian ironworks, with a special industrial committee established to oversee the project, led by Professor Fredrik Vogt.

The committee focused on building technical expertise, including visiting British iron and steel works.

Self-sufficiency and preparedness were key motivations for a national ironworks, as Norway had strong electrometallurgical expertise, access to iron ore resources, and abundant power resources.

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The ironworks was envisioned as a "mother industry" that would support the rest of the industry.

In 1953, the government allocated 8 million kroner for a pilot plant to explore using iron ore from the Dunderdalsfeltet deposit.

The ironworks was initially planned to use iron ore from Fosdalen Bergverk, but this proved insufficient, and additional resources were needed.

Rana Gruber and Norsk Koksverk were established in the early 1960s to provide raw materials for the ironworks.

The ironworks underwent significant expansion, with a new production facility and other upgrades.

Despite initial setbacks and criticism, the ironworks continued to operate and expand, with a focus on producing high-quality steel products.

In 1963, the Norsk Koksverk facility began producing coke, which would be used in the ironworks' production process.

The ironworks' management developed a four-year plan in 1968, which included investing 181 million kroner in new production equipment and infrastructure.

The plan aimed to improve the ironworks' efficiency and competitiveness, while also reducing costs and increasing productivity.

In 1973, the government approved a major restructuring plan for the ironworks, which included writing off all debt and injecting new capital.

The plan was seen as a way to stabilize the ironworks' finances and ensure its long-term viability.

Despite the challenges it faced, the ironworks continued to operate and produce high-quality steel products, playing a crucial role in Norway's industrial economy.

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Norsk Jernverk's leadership and management underwent significant changes in the mid-1960s. The Backe committee was given full powers to investigate the management of the ironworks, revealing a clear conflict between central figures at the Oslo headquarters and the local management.

General Director Dagfin Efjestad's old-fashioned and authoritarian leadership style was a major contributor to the problems. In 1966, the engineers at Jernverk took matters into their own hands and appointed Herman Ramsted as the new director, an event known as "Påskeopprøret".

The new management team, led by Per Blidensol, introduced significant changes, including the relocation of the headquarters from Oslo to Mo i Rana. They also strengthened the market and sales organization, emphasized research and development, and implemented more specialized and flexible production methods.

The new leadership style was based on Alfred Chandler's model for industrial leadership, which was also adopted by other Norwegian companies. In 1967, Blidensol was formally appointed as the administrating director.

The Stålkrise, a period of significant change for Norsk Jernverk. It started in 1975 with a sudden drop in steel prices, leading to a crisis in the industry.

This crisis was fueled by the oil crisis and restrictive policies. Initially, the company invested heavily in Jernverket, hoping to overcome the crisis.

However, this investment didn't pay off, and the company struggled to balance its operations. The production of steel profiles for ships, which was a key focus area, didn't meet expectations, with a capacity of 200,000 tons per year but sales below 75,000 tons.

The crisis worsened in 1977, with the tank ship industry also experiencing difficulties. The market for ship profiles became dead.

The second phase of the Stålkrise began in 1982, with drastic capacity reductions and closures in European steel plants. Between 1974 and 1984, 700,000 jobs were lost in the OECD's steel industry, with 300,000 in Europe, or 40% of the workforce.

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This led to significant changes in industrial towns with long traditions. Governments intervened with support measures to prevent the industry from collapsing. In France, the state took over the entire steel industry, while Germany avoided such drastic measures.

In Norway, the demand for steel decreased, and the domestic production, which was covered by Christiania Spigerverk and Jernverket, accounted for only 10-15% of the country's steel consumption.

Norsk Jernverk underwent a significant modernization and restructuring process in the 1980s. A plan for modernization was presented to the government in 1980, with an investment need of around 760 million kroner.

The plan aimed to transition to continuous casting of steel, a production method that had become common in the 1970s worldwide. Modernization of the fin valseverket was also part of the plan.

The Forhandlingsutvalget, however, was in doubt about the wisdom of making large investments when the long-term development was not well mapped out. They presented their report in March 1980, but could not agree on a joint statement.

In 1985, Norsk Jernverk took over Christiania Spigerverk from Elkem, and Spigerverket became a wholly-owned subsidiary of Norsk Jernverk. Elkem, on the other hand, acquired 20% of the shares in Norsk Jernverk.

The restructuring process led to the establishment of several new companies on the former jernverksområdet. Norsk Jern Eiendom AS, now Mo Industripark AS, was set up as a central infrastructure company, owning the land and providing services such as water, sewage, electricity, and roads.

Here is a list of the different company names and owners:

The restructuring process also led to the establishment of several public institutions with many job opportunities. The Nasjonalbibliotek avdelingen Rana, Statens Innkrevingssentral, and Arbeidsmarkedsetatens Grønne linjer (telefontjeneste for arbeids- og utdanningssøkere) were some of the institutions set up.

In 2022, there were over 100 companies in Mo Industripark with more than 2500 employees. A significant investment was also made in education as part of the restructuring process.

The McKinsey consultants were hired to investigate Jernverkets problems. They had a "stålindustrimodell" that included economic and technical data for Europe's major steelworks. Jernverket was compared to an average of these works, and found to have a very weak competitive position.

The consultants recommended a significant reduction in the number of employees, but the Forhandlingsutvalget was skeptical about this. The styre of Jernverket presented a new plan in January 1984, which included a reduction in the number of employees and an investment of 800 million kroner.

The plan was accepted by the government, and the first year saw an increase in sales of 13% due to increased production and higher steel prices. However, the cost of electricity increased by 25%.

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The fabrikkanlegg, or factory facilities, of Norsk Jernverk were a massive undertaking. A large flat area east of the Mo i Rana settlement was chosen for the site.

Two kaier, or quays, were built, one for unloading goods and the other for shipping and loading. A taubane, or tramway, and a jernbanelinje, or railway line, were constructed to connect the quays to the factory and the local railway station.

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Transportbelter, or conveyor belts, were installed to transport the raw materials between the factory, storage facilities, and silos. The factory was designed to be highly efficient, with a focus on minimizing waste and maximizing productivity.

The factory's electrical steel smelting facilities were equipped with the Norwegian-developed Tysland-Hole ovens, which were a significant investment for the company.

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The Norwegian government played a significant role in the development of the country's industry, particularly in the production of iron and steel. Norsk Jernverk was a key part of this effort, aiming to establish a modern iron industry in Norway.

The government's industry policy after World War II prioritized industrialization and investments in heavy industry, with Jernverket being a crucial part of this strategy. The production of iron and steel was seen as essential for national self-sufficiency, given the country's experience with critical shortages during the war.

The government's approach to industry was pragmatic, focusing on achieving economic goals such as generating profits, securing foreign exchange, creating employment, and utilizing resources efficiently.

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Norge hadde en kraftig voksende stål-, maskin- og verkstedindustri i 1870-årene.

Landet måtte importere stål på grunn av dette.

I 1870-årene hadde noen ingeniører og teknisk- og samfunnsinteresserte personer begynt å se på mulighetene for moderne jernproduksjon.

Geologi Johan Herman Lie Vogt foreslo å etablere en ny norsk jernindustri i tilknytning til de store jernforekomstene i Nord-Norge.

En elektrisk råjernsovn ble utviklet av de norske ingeniørene Georg Tysland og Ivar Hole, kalt for Tysland-Hole-ovnen.

Denne ovnen ble videreutviklet og patentert av A/S Elektrokemisk (Elkem).

Fordelen med Tysland-Hole-ovnen var at den sterkt reduserte forbruket av koks og kull.

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In 1946, the Norwegian government decided to establish A/S Årdal Verk, a large industrial enterprise with the state as owner, in addition to Jernverket.

Industrialization was the long-term strategy for the Labor Party's modernization of the country, with industrial investments receiving top priority.

Import needs were high for both production and consumption goods, making valuta policy crucial.

New export industries were meant to provide goods and foreign currency, while domestic industry would reduce the need for imported goods.

The Labor Party's strategy was to create a strong export industry once world trade was liberalized.

Jernverket was intended to be a key part of the country's infrastructure, along with power plants, schools, healthcare, communication, and other essential services.

The goal was to achieve national self-sufficiency in iron and steel, as the experience of two world wars had shown that industry was critically vulnerable without a secure supply of these essential materials.

The Labor Party saw Jernverket as part of the infrastructure, rather than focusing on profitability or market conditions.

In the late 1940s, the opposition in parliament had a different view on infrastructure, prioritizing business economic goals over the Labor Party's vision.

This shift in thinking continued in the 1950s, with even some Labor Party representatives adopting a more business-oriented approach.

By the 1960s, the Labor Party's infrastructure-focused approach had been abandoned.

The country's hydroelectric power was a significant competitive advantage, making it an ideal location for large-scale industry.

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The Labor Party's focus on mass production was driven by a desire to rapidly industrialize the country.

The state took on the role of leading industry, as the private sector was unable to meet the country's needs.

Some saw the state's involvement in industry as a guarantee of success, with Jernverket serving as a model for organizing industry in the "new workday."

The idea of a "Pattern City" was a key concept in the planning of Mo i Rana, where the Jernverket was to be built.

The planners were concerned with the social aspects of the project, wanting to create a community where people lived in harmony.

They envisioned "vakre og lyse boligstrøk" or "beautiful and light residential areas" with gardens and plantings, and "pene og praktiske forretningsgater" or "nice and practical business streets".

This vision was rooted in the Arbeiderpartiets (Labour Party) ideals of a socialist society, where the state owned key industries and ensured equality among citizens.

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The party's vision was for Jernverket to be a "mønsterbedrift" or model company, and Mo i Rana to become a "sosial mønsterby" or social model city without class divisions.

However, this vision was not fully realized, as the Jernverket became a place of stark contrasts, with workers living in large blocks and managers in row houses.

Norsk Jernverk had a significant financial burden, with a debt of over 1 billion Norwegian krone. This made it difficult for the company to operate efficiently.

The Backe-utvalget, a committee formed in 1964, identified several issues that needed to be addressed. They believed that the company's financial situation was unsustainable and that a debt restructuring was necessary.

Jernverkets financial problems were exacerbated by its high electricity costs, which were a major expense for the company.

In 1964, a special committee was formed to investigate the problems of AS Norsk Jernverk, known as the Backe-utvalget. Led by Per Møystad Backe, the committee consisted of top industry experts from various Norwegian companies, including an American with 50 years of experience from the US steel industry.

The committee identified several issues that needed to be addressed, including a large debt burden that required restructuring, and the high cost of electricity, which had been a problem since the company's inception. They also recommended that the company take over the Nedre Røssåga power plant from the Norwegian Water and Energy Directorate.

The committee was critical of the company's leadership, which they deemed unprofessional and outdated, and recommended a more modern and efficient management structure. They also suggested that the company consider partnerships with other companies, such as Christiania Spigerverk and Elkem, to improve its competitiveness.

In the end, the committee proposed that Jernverket be reorganized as a new company, owned by the state, Spigerverk, and Elkem, but this plan was met with resistance from the company's general director, Dagfin Efjestad, who feared that it would lead to the company's demise.

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On July 10, 1946, the Norwegian Storting made the decision to build a steel plant in Mo i Rana.

The location of the steel plant was a crucial factor in the decision-making process, with several sites considered, including Hølen, Orkanger, Steinkjer, Spildra, and Mo i Rana. Mo i Rana was ultimately chosen due to its strategic location and modernization of Northern Norway.

The decision to build the steel plant was made with little debate about the need for it, and a proposal to delay the decision was rejected.

The decision to establish the Jernverket in Mo i Rana was made on July 10, 1946, in the Stortinget.

The location of the Jernverket was a crucial factor in the decision-making process, with several potential sites considered, including Hølen, Orkanger, Steinkjer, Spildra, and Mo i Rana.

The Jernverkskommisjon recommended Mo i Rana as the best location for the Jernverket. The decision to establish the Jernverket in Mo i Rana was made with a focus on district political considerations and the modernization of Northern Norway.

The board of the Jernverket was established with a diverse group of individuals, including Sven Arntzen as the chairman, Theodor Broch, Johannes Gahr, Alf Ihlen, Sigval Bergesen d.y., Robert Lepsøe, Tor Skjønsberg, Christian Brinch, Bråthen, Fredrik Vogt, Parelius Berntsen, Drogseth, and Amundsen.

Despite Arbeiderpartiets reservations about the composition of the board, they chose to select individuals with industrial leadership experience, as they believed it was essential for the Jernverket to be as efficient as private companies.

In the late 1970s, Jernverket's balance between its departments improved, and the steel production capacity increased to nearly 800,000 tons. The company's most modern facility, the ship profile workshop, had a capacity of over 200,000 tons per year.

However, the shipbuilding industry experienced overcapacity, and Jernverket couldn't sell more than 75,000 tons per year. The company struggled financially, with a growing debt that reached one billion kroner by 1978.

The state had to provide funds to keep Jernverket afloat, and the company's 2,000 employees faced reduced working hours. The government asked Industrikonsulent to assess potential cost-cutting measures, which recommended a 330-person staff reduction.

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Despite the opposition from employees, the company's leadership was advised to consider the report's findings. The state minister, Olav Haukvik, instructed Jernverket to work with the consultant's recommendations and engage in negotiations with labor unions to reduce staff.

The employees were upset that a consulting firm was suggesting cuts, and the company's leadership couldn't use the report internally due to the backlash. However, the leader of the labor union, Tor Halvorsen, acknowledged that changes were necessary but suggested starting from the bottom up.

In 1970, Jernverket had nearly 3,000 employees, with 800 working in maintenance and service. One of the concerns was the large number of maintenance workers, which some considered unnecessary.

Per Blidensol, the company's administrator, left his position in 1983 after 17 years, known for his mild demeanor and ability to create good working relationships. He was also known for his tough stance with the government, saying that if the state had made a mistake by building a steel plant, it should be willing to pay for it.

Norsk Jernverk's legacy is a testament to the country's rich industrial heritage. The company played a significant role in Norway's economic development during the 19th and early 20th centuries.

The ironworks was a major employer in the region, providing jobs for thousands of workers and their families. Its impact on the local economy was substantial.

Norsk Jernverk's innovative approach to iron production made it a leader in the industry. The company's use of new technologies and techniques helped to increase efficiency and productivity.

The ironworks was a major contributor to Norway's growth and development during the Industrial Revolution.