CORPORATE HISTORY

In 1918 Hermann Steger founded a wool-trading company which his son, Erich, joined four years later. After leaving the Soviet occupied Zone, "Hermann Steger - Wolle & Garne" was re-established in Central Franconia. The move to Nürnberg two years later was followed by an intensive phase of expansion culminating in the establishment of Südwolle Gebr. Steger OHG. The foundation stone of Südwolle's success today was laid when the company's first spinning mill in Weiden/Upper Palatinate was constructed in 1972. Only three years later, strong demand led to a doubling of capacity and this success was followed by further expansion every two or three years.

A second mill in Weiden was completed in 1977 and three years later, the administration moved in to a brand new building in Nürnberg. In 1981, the KSR mill in Berlin was opened, followed by a second just two years later.

As the market constantly demands quick reaction and as Südwolle's product range had increased considerably over this period, a central warehouse was built in Weiden in 1984. In the same year, the first mill was completely rebuilt. In 1985, Wollspinnerei Interlaken (WSI) was constructed and still in 1985 a third mill in Weiden. Three years later, a third mill in Berlin, built especially for polyester/wool yarns, went outstream.

In 1989 Südwolle Gebr. Steger OHG changed its title to Südwolle AG (Inc), then in 1990 the fourth and largest mill in the Südwolle Group was constructed in Weiden, at the same time as a complete re-equipping of Mill 2. During this period, the increase in capacity led to a 50% expansion of the central warehouse.

Thus, the major investment programme in Germany was completed and the Company then shifted emphasis towards foreign locations. East West Spinning in Lodz, Poland, was the first non-German mill to be built in 1992, and a small mill in Teichwolframsdorf in Thuringia was also bought and immediately expanded.

Increased international competition and pressure on costs forced the company to shift production sites. This led to the closing down of production in Switzerland and Berlin. At the same time, the construction of two modern worsted spinning mills in China was put into effect, along with the re-equipment of the second mill in Poland. Now, not only is yarn sold in Asia, it is produced there too. (Just two years later, again in China, capacity doubles with the construction of a second mill).

Beginning of 2002 a third mill goes into production which completes the increase in capacity in the worsted field and strengthens Südwolle's market leadership in the world.

Focussing on diversification, Südwolle bought over 80% of Textilgruppe Hof in 1997 and for the first time in its history, the group turned over 500.000.000 EURO. In 2001 the group restructured and the newly founded ERWO Holding AG acts as head company. From then on all worsted yarn activities are concentrated in the Südwolle GmbH & Co KG.