Nokia Corp - Early History

EARLY HISTORY

Oy Nokia Ab was established in 1865 to sell paper and other products that would result from harvesting the forests that grew near the small town of Nokia, Finland. When the rebuilding of Europe following World War II spurred demand for construction materials, Nokia found itself operating as a major exporter of paper and wood products. To increase its international presence, Nokia began to diversify by purchasing other companies.

In 1966, Nokia merged with Finnish Rubber Works, a rubber products manufacturer created in 1898, and Finnish Cable Works, a power transmission cable and phone line manufacturer founded in 1912. The new firm was renamed Nokia Corp., and operations were restructured into four units: pulp, paper, and power; Finnish Rubber Works; Finnish Cable Works; and Nokia Electronics. The following year, Nokia created a fifth unit, hoping to move into the areas of data processing, industrial automation, and communications systems. By the early 1970s, the Soviet Union accounted for 12 percent of Nokia's sales. Most of the firm's business with the Soviet Union was done via trade, as lumber products and machinery were exchanged for petroleum.