APC 2006 Annual Report Download - page 17

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1
Description of
the company and
its businesses
1. From steel to electricity:
170 years of history
Schneider Electric’s history is a rich tapestry woven
from the achievements of Schneider, Merlin Gerin and
Telemecanique in France, Square D in the United
States, and many other companies that have joined
the Group around the world. All are fully devoted to
controlling and optimizing electricity and automation
management to build the new electric world. Each
strengthens the Group with its market positions and
know-how, as well as with its people’s skills and diver-
sity. Openness and diversity are at the center of the
Schneider Electric model as the Group works to devel-
op and promote high-quality multicultural teams
around the world.
1836 – 1980: the gradual
creation of a conglomerate
In 1836, Adolphe and Joseph-Eugène Schneider
acquired steel foundries in Le Creusot, France. They
founded Schneider & Cie in 1838. From that point until
the mid-twentieth century, the Company steadily built a
presence in heavy mechanical engineering and trans-
portation equipment, gradually becoming a huge, high-
ly diversified conglomerate.
Merlin Gerin, a leading French manufacturer of elec-
trical distribution equipment, joined the Group in 1975,
strengthening a position in electricity that had been
established at the end of the 19th century.
1981 – 2001: refocusing
and building on electricity
In 1988, Schneider Electric acquired France’s Tele-
mecanique, a pioneer in remote control systems for
electric motors.
In 1991, the Group made a major acquisition in the
United States, bringing in Square D, the US electrical
equipment market leader with sales of $1.65 billion.
At the same time, the Group accelerated its interna-
tional expansion. It set up operations in China in 1987.
The country, with 17 production units, now ranks third
in terms of revenue generation, contributing some
800 million in 2006.
Schneider Electric completed its refocusing on elec-
tricity in 1997 with the sale of building and public works
company Spie Batignolles.
In 1998, the Group created the Schneider Electric
Youth Opportunities Foundation to promote its values
of involvement and solidarity. The Group’s employees
work in close partnership with the Foundation around
the world.
1. From steel to electricity:
170 years of history . . . . . . . . . . . . . . . . .
p. 15
2. An ambitious strategy of
profitable growth . . . . . . . . . . . . . . . . . . . .
p. 16
3. The new2company program . . . . . . . . . .
p. 17
4. Major prospects in four main markets . . .
p. 18
5. Forefront positions worldwide . . . . . . . . .
p. 19
6. Our customers are our partners . . . . . . .
p. 22
7. A global organization with local roots . . . .
p. 24
8. Human resources . . . . . . . . . . . . . . . . . . .
p. 26
9. Risk factors . . . . . . . . . . . . . . . . . . . . . . . .
p. 28
15
1