When the telephone operators Televerket and Stockholms Allmänna Telefonaktiebolag (SAT) started their own manufacturing operations in the 1890s, Ericsson found itself in difficulties. Without orders from these two major customers, the business was threatened.
During the same decade, Ericsson began manufacturing telephone equipment in Russia. This business, which was started in leased premises, was successful, and by 1900, Ericsson was able to open its own plant in St Petersburg. At this point, there were very advanced plans to move the entire company to Russia.
But in 1901 SAT discontinued its manufacturing operations, and the Swedish market was once again opened to Ericsson. Investments in Russia continued, however, and as of 1905, the St Petersburg plant became an Ericsson subsidiary. The foundation for Ericsson’s development as an international company had been established.
Author: Centre for Business History, Stockholm