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Saturday, September 3, 2011

From paper manufacturing to an era of cellphones. (Brief History of Nokia, Worlds Leader in Mobile Technology)

The history of Nokia Corporation begins with the foundation of the three greatest companies: Nokia, Finnish Rubber Works and Finnish Cable Works.

In 1865 Fredrik Idestam established a ground wood pulp mill in the town of Tampere (South Finland) and started manufacturing paper. Three years after he built another mill near the town of Nokia by the Nokiavirta river. In 1871 a statesman Leo Menchin who was also Fredrik's friend joined him in paper business and together they founded the Nokia Company which is still known by its original name.

At the end of 19th Century Mechelin took over as the company's chairman. With his help in 1902 company entered into electricity business. 

In 1898 another great company was created. Eduard Polon established Finish Rubber Works that was manufacturing galoshes and other rubber products. This company started using Nokia's electricity. 

In 1912 the Finish Cable Works was founded by Arvid Winchstrom. It became the biggest producer of telephone, telegraph and electrical cables. 

Shortly after the World War I the Nokia experienced financial downfall and was almost bankrupt. The Finnish Rubber Works decided to buy it in order to continue electricity supply from Nokia's generators. Eleven years later the company became a new owner of Finnish Cable Works. In 1967 the three companies merged to form a Nokia Corporation. At this point companies business included production of paper products, tires, cables, electronics, PCs, robotics, military communications and chemicals. Nevertheless, the board decided to step away from the consumers products and focus on the growing perspective of communication business. The more attention was driven to earlier created electronics section of the company's cable division. 

In 1970 the company developed the Nokia DX 200, a digital switch for telephone exchanges. Nine years after this Nokia merged with Salora Oy and on the sixth year into the merger it bought all of the companies shares. In 1984 Nokia acquired Telefonno Company and changed its name to the Nokia Telecomunications. The same year it introduced one of the world's first handheld phones. In 1991 company's equipment was used to make the world's first GSM call. 

In 1992 with the beginning of the Technology Revolution took a strategic plan and focused on its telecommunications business. By the end of the 20th Century Nokia became the world's leader of mobile phone industry.

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