The history of Verket
The explosive industrial development worldwide set new demands that the small artisanal mills in Sweden could not meet. In order to run mill operations, regulated hydropower, large-scale operations and good transport systems were required.
1872 Hjalmar Petre and Hampus buys August Cornelius Stora Kopparberg's Avesta Jernverk with waterfalls and estates. In 1873 they form Avesta-Garpenberg AB with Cornelius as CEO and site manager. At the site, there were buildings from the abandoned copper mill and a small iron bar. The company was not interested in the old buildings, but immediately started to plan and build the new large ironworks.
It was a boom when the new ironworks were formed and the calculations were based on continued high revenues. In 1878, Sweden passed a financial crisis which was precisely a consequence of large investments being made in areas that could not provide profitability within a reasonable time. In 1879, Avesta-Garpenberg AB went bankrupt. After the bankruptcy, Cornelius is appointed to continue to take care of the business under the new owners Jernkontoret and Norrköpings Enskilda Bank. In 1883, Avesta Jernverk AB is formed with Jernkontoret as majority shareholder. One of the minority shareholders is then Axel Johnson. In 1905, Axel Johnson acquires the majority shareholding and the ironworks became completely owned by Johnson.
Great industrial conditions
Cornelius is the driving force behind management, behind the first phase of the development of the ironworks. He understands that if one is to run a large-scale modern business, one must be involved in influencing the development of society in the direction that is good for the business.
An important development phase in the infrastructure was the railway. In addition to his task at the ironworks, Cornelius was also CEO of Southern Dalarnas Järnvägs AB in 1878 - 98. The railway Krylbo - Norberg was completed in 1874 and was a prerequisite for the ore transport to the cabin. In 1875, the Avesta - Krylbo stretch was completed, in 1881 the Avesta - Borlänge section was put into use.
Cornelius also took the initiative for the first telephone lines between Krylbo, Avesta, Fors, Garpenberg, Finnhyttan and Dormsjö, which were established in 1885.
To get over Storforsen, a highway bridge was built in 1891
Another important prerequisite for running modern industry is the energy supply. The channels built for the needs of the copper mill gave too little power. In 1881 - 83, the first large dam was built at Storforsen. The water was led into a newly built canal between the manor house and the cab and the development of turbine-driven works in the cabin took off. The first power station at the cabin was completed in 1898. The current power plant building at Storforsen came to 19
The new company invested in large-scale operations. The blast furnaces were considerably larger than the older ones. All the new technology needed to improve the results was also accepted. Future companies continued to build on the same tradition, namely to invest large and best technology. To achieve these results, well-known engineers were hired. As a designer and builder of the new ironworks, Albert Bergström, 1873-1884, was hired. Henrik Tholander, 1875-1892, employed as cabin engineer and metallurgist. The investments made Avesta Jernverk grow into a large industry.