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==History==
==History==
The company was founded in 1849 by Carl Johann Freudenberg, the son of a wine merchant,<ref>Johannes Hucke, "Weingut Carl Freudenberg, Weinheim," in ''Bergstraße Weinlesebuch: die Winzer der Badischen und der Hessischen Bergstrasse von Süd nach Nord; mit kulinarischen, anekdotischen und sogar landeskundlichen Hinweisen'', Regio Guide 6, Karlsruhe: Info, 2009, {{ISBN|978-3-88190-504-6}}, pp. 191&ndash;95, [https://books.google.com/books?id=qDbODGRW-BIC&pg=PA195&dq=Freudenberg-Stiftung+Hermannshof&hl=en&sa=X&ei=Q7j3TrO4GOiSiAKTrcDCDg&ved=0CEwQ6AEwBA#v=onepage&q=Freudenberg-Stiftung%20Hermannshof&f=false p. 195] {{in lang|de}}</ref> and his partner, Heinrich Christoph Heintze; the two took over a [[Tanning (leather)|tannery]] at Weinheim. For the next 80 years, the company produced leather products exclusively.<ref name=Familie>Martin Scheele, [http://www.manager-magazin.de/unternehmen/karriere/0,2828,282882,00.html "Familie Freudenberg: Die Wischmopp-Millionäre,"] ''Manager Magazin'' 22 January 2004 {{in lang|de}}</ref><ref name=Zeit>Dietmar H. Lamparter, [http://www.zeit.de/2011/09/Industriekonzern-Freudenberg/komplettansicht "Von der Kunst des Häutens: Freudenberg – oder wie aus einer kleinen Gerberei ein breit aufgestellter Industriekonzern wurde,"] ''[[Die Zeit]]'' 27 February 2011 {{in lang|de}}</ref> Hurt by the [[Great Depression|worldwide economic depression]] that began in 1929, and by shortages during World War II, it diversified into [[Radial shaft seal|seal]]s for motors made first of leather and later of artificial rubber (the Simmerring, named for an engineer called Walther Simmer),<ref name=Sywottek>Christian Sywottek, [http://www.brandeins.de/archiv/magazin/wir-rechnen-mit-allem-die-kunst-der-improvisation/artikel/das-matroschka-prinzip.html "Das Matroschka-Prinzip,"] {{Webarchive|url=https://archive.today/20130210145833/http://www.brandeins.de/archiv/magazin/wir-rechnen-mit-allem-die-kunst-der-improvisation/artikel/das-matroschka-prinzip.html |date=10 February 2013 }}, interview with Wolfram Freudenberg, ''Brand Eins'' October 2008 {{in lang|de}}</ref> which led to fabrics and to cleaning fabrics and tools when it was noted that the company's cleaning ladies were using discarded scraps of the experimental fabrics.<ref name=Familie/><ref name=Zeit/> [[Vileda]] (from {{lang-de|wie Leder}}, "like leather") window-cleaning cloths were first marketed in 1948.<ref name=Directory>Tina Grant, ''International Directory of Company Histories'', Gale Virtual Reference Library, volume 41 Detroit: St. James, 2001, {{ISBN|978-1-55862-682-9}}, [https://books.google.com/books?id=d_3XAAAAMAAJ&q=Freudenberg+Weinheim&dq=Freudenberg+Weinheim&hl=en&sa=X&ei=YY73Tvl3xJOJAtGUkYQN&ved=0CDUQ6AEwAQ p. 171].</ref>
The company was founded in 1849 by Carl Johann Freudenberg, the son of a wine merchant,<ref>{{Cite book|last=Hucke|first=Johannes|url=https://books.google.co.in/books?id&#61;qDbODGRW-BIC&pg&#61;PA195&dq&#61;Freudenberg-Stiftung+Hermannshof&hl&#61;en&sa&#61;X&ei&#61;Q7j3TrO4GOiSiAKTrcDCDg&redir_esc&#61;y|title=Bergstraße-Weinlesebuch: die Winzer der Badischen und der Hessischen Bergstraße von Süd nach Nord ; mit kulinarischen, anekdotischen und sogar landeskundlichen Hinweisen ; &#91;Special: Heidelberger Wein&#93;|date=2009|publisher=Info Verlag|isbn=978-3-88190-504-6|language=de}}</ref> and his partner, Heinrich Christoph Heintze; the two took over a [[Tanning (leather)|tannery]] at Weinheim. For the next 80 years, the company produced leather products exclusively.<ref name=Familie>{{Cite web|last=magazin|first=Martin Scheele, manager|title=Familie Freudenberg: Die Wischmopp-Millionäre|url=https://www.manager-magazin.de/unternehmen/karriere/a-282882.html|access-date=2022-03-31|website=www.manager-magazin.de|language=de}}</ref><ref name=Zeit>{{Cite web|title=ZEIT ONLINE &#124; Lesen Sie zeit.de mit Werbung oder im PUR-Abo. Sie haben die Wahl.|url=https://www.zeit.de/zustimmung?url&#61;https%253A%252F%252Fwww.zeit.de%252F2011%252F09%252FIndustriekonzern-Freudenberg%252Fkomplettansicht|access-date=2022-03-31|website=www.zeit.de}}</ref> Hurt by the [[Great Depression|worldwide economic depression]] that began in 1929, and by shortages during World War II, it diversified into [[Radial shaft seal|seal]]s for motors made first of leather and later of artificial rubber (the Simmerring, named for an engineer called Walther Simmer),<ref name=Sywottek>Christian Sywottek, [http://www.brandeins.de/archiv/magazin/wir-rechnen-mit-allem-die-kunst-der-improvisation/artikel/das-matroschka-prinzip.html "Das Matroschka-Prinzip,"] {{Webarchive|url=https://archive.today/20130210145833/http://www.brandeins.de/archiv/magazin/wir-rechnen-mit-allem-die-kunst-der-improvisation/artikel/das-matroschka-prinzip.html |date=10 February 2013 }}, interview with Wolfram Freudenberg, ''Brand Eins'' October 2008 {{in lang|de}}</ref> which led to fabrics and to cleaning fabrics and tools when it was noted that the company's cleaning ladies were using discarded scraps of the experimental fabrics.<ref name=Familie/><ref name=Zeit/> [[Vileda]] (from {{lang-de|wie Leder}}, "like leather") window-cleaning cloths were first marketed in 1948.<ref name=Directory>{{Cite book|last=Grant|first=Tina|url=https://books.google.co.in/books?id&#61;d_3XAAAAMAAJ&q&#61;Freudenberg+Weinheim&dq&#61;Freudenberg+Weinheim&hl&#61;en&sa&#61;X&ei&#61;YY73Tvl3xJOJAtGUkYQN&redir_esc&#61;y|title=International Directory of Company Histories|date=2001|publisher=St. James Press|isbn=978-1-55862-446-7|language=en}}</ref>


In the mid-1990s the company reorganized with a "highly decentralized organizational structure": it has 16 divisions or areas of business incorporating 430 independent units.<ref name=Zeit/><ref>{{As of|2013|04}}, under [http://www.freudenberg.com/en/Company/Structure/Pages/BusinessGroups.aspx Business Groups] the company lists the following four Business Areas, each of which incorporates several Business Groups: Seals and vibration control technology; nonwovens and filtration; household products; specialties and others. See also [http://www.freudenberg.com/en/Company/Structure/Pages/default.aspx Company Structure], Freudenberg Group.</ref><ref>In 2008, 434 subsidiary companies: Sywottek, cited in Jörn Hendrich Block, ''Long-Term Orientation of Family Firms: An Investigation of R&nbsp;&&nbsp;D investments, Downsizing Practices, and Executive Pay'', Thesis, [[Technical University of Munich]], Wiesbaden: Gabler, 2009, [https://books.google.com/books?id=Aa0IVOUGMIIC&pg=PA3&dq=Freudenberg+Weinheim&hl=en&sa=X&ei=YY73Tvl3xJOJAtGUkYQN&ved=0CFMQ6AEwBw#v=snippet&q=434%20subsidiary%20firms%20and%20306%20family%20shareholders&f=false p. 102, note 188].</ref> Three-quarters of its business is as a supplier to other companies.<ref name=Behrens3>Bolke Behrens, "Freudenberg-Gruppe bewahrt beharrlich den Familiencharakter: Ein ganz unauffälliges Weltunternehmen," ''Handelsblatt'' 24 January 2005, [https://www.handelsblatt.com/unternehmen/industrie/ein-ganz-unauffaelliges-weltunternehmen/2467328.html?p2467328=3 p. 3] {{in lang|de}}</ref> In 2004 Freudenberg had employees in 43 countries.<ref name=Familie/><ref>53 in 2008, according to Sywottek.</ref><ref>{{As of|2013|04}}, 58 countries: [http://www.freudenberg.com/en/Company/Pages/default.aspx Freudenberg Group], retrieved 13 April 2013.</ref> Recently it has focused attention on markets in China and Japan; for example, it provided the floor coverings for the [[Shanghai Metro]] stations.<ref name=Scheele3>Scheele, [http://www.manager-magazin.de/unternehmen/karriere/0,2828,282882-3,00.html p. 3].</ref>
In the mid-1990s the company reorganized with a "highly decentralized organizational structure": it has 16 divisions or areas of business incorporating 430 independent units.<ref name=Zeit/><ref>{{As of|2013|04}}, under [http://www.freudenberg.com/en/Company/Structure/Pages/BusinessGroups.aspx Business Groups] the company lists the following four Business Areas, each of which incorporates several Business Groups: Seals and vibration control technology; nonwovens and filtration; household products; specialties and others. See also [http://www.freudenberg.com/en/Company/Structure/Pages/default.aspx Company Structure], Freudenberg Group.</ref><ref>{{Cite book|last=Block|first=Joern H.|url=https://books.google.co.in/books?id&#61;Aa0IVOUGMIIC&pg&#61;PA3&dq&#61;Freudenberg+Weinheim&hl&#61;en&sa&#61;X&ei&#61;YY73Tvl3xJOJAtGUkYQN&redir_esc&#61;y|title=Long-term Orientation of Family Firms: An Investigation of R&D Investments, Downsizing Practices, and Executive Pay|last2=Block|first2=Jörn|date=2009-10-27|publisher=Gabler Verlag|isbn=978-3-8349-1959-5|language=en}}</ref> Three-quarters of its business is as a supplier to other companies.<ref name=Behrens3>{{Cite web|title=Freudenberg-Gruppe bewahrt beharrlich den Familiencharakter: Ein ganz unauffälliges Weltunternehmen|url=https://www.handelsblatt.com/unternehmen/industrie/freudenberg-gruppe-bewahrt-beharrlich-den-familiencharakter-ein-ganz-unauffaelliges-weltunternehmen/2467328.html|access-date=2022-03-31|website=www.handelsblatt.com|language=de}}</ref> In 2004 Freudenberg had employees in 43 countries.<ref name=Familie/><ref>53 in 2008, according to Sywottek.</ref><ref>{{As of|2013|04}}, 58 countries: [http://www.freudenberg.com/en/Company/Pages/default.aspx Freudenberg Group], retrieved 13 April 2013.</ref> Recently it has focused attention on markets in China and Japan; for example, it provided the floor coverings for the [[Shanghai Metro]] stations.<ref name=Scheele3>{{Cite web|last=magazin|first=Martin Scheele, manager|title=Familie Freudenberg: Die Wischmopp-Millionäre|url=https://www.manager-magazin.de/unternehmen/karriere/a-282882.html|access-date=2022-03-31|website=www.manager-magazin.de|language=de}}</ref>


In 2002 the company closed its last leather tannery, marking the effective end of the leather industry in Germany.<ref name=Zeit/> However, today Vileda is a market leader in Europe.<ref>Manfred von Dworschak, [http://www.spiegel.de/spiegel/print/d-17483323.html "Hygiene: Materie am falschen Ort,"], ''[[Der Spiegel]]'' 2 October 2000 {{in lang|de}}</ref> All German cars contain parts made by another Freudenberg subsidiary, and German-made outdoor clothing contains fibers made by yet another.<ref name=Zeit/> Almost all major airports have flooring made by another Freudenberg subsidiary.<ref>Behrens, [https://www.handelsblatt.com/unternehmen/industrie/ein-ganz-unauffaelliges-weltunternehmen/2467328.html p. 1].</ref> In 2004, Freudenberg Group made an initial entry into the global medical market with the creation of Freudenberg Medical EN. In 2020, the group was a 8,8 billion [[euro]] business with more almost 48,000 employees, approximately 11,000 in Germany. .<ref name=Zeit/>
In 2002 the company closed its last leather tannery, marking the effective end of the leather industry in Germany.<ref name=Zeit/> However, today Vileda is a market leader in Europe.<ref>{{Cite news|last=Dworschak|first=Manfred|date=2000-10-01|title=»Materie am falschen Ort«|language=de|work=Der Spiegel|url=https://www.spiegel.de/wissenschaft/materie-am-falschen-ort-a-bd5ebebf-0002-0001-0000-000017483323|access-date=2022-03-31|issn=2195-1349}}</ref> All German cars contain parts made by another Freudenberg subsidiary, and German-made outdoor clothing contains fibers made by yet another.<ref name=Zeit/> Almost all major airports have flooring made by another Freudenberg subsidiary.<ref>{{Cite web|title=Freudenberg-Gruppe bewahrt beharrlich den Familiencharakter: Ein ganz unauffälliges Weltunternehmen|url=https://www.handelsblatt.com/unternehmen/industrie/freudenberg-gruppe-bewahrt-beharrlich-den-familiencharakter-ein-ganz-unauffaelliges-weltunternehmen/2467328.html|access-date=2022-03-31|website=www.handelsblatt.com|language=de}}</ref> In 2004, Freudenberg Group made an initial entry into the global medical market with the creation of Freudenberg Medical EN. In 2020, the group was a 8,8 billion [[euro]] business with more almost 48,000 employees, approximately 11,000 in Germany. .<ref name=Zeit/>


==Ownership and philosophy==
==Ownership and philosophy==
Freudenberg remains a family-owned private company, structured as a [[Kommanditgesellschaft]] ([[limited partnership]]) jointly held by descendants of the founder (some 300 in 2011).<ref name=Zeit/><ref name=Scheele2>Scheele, [http://www.manager-magazin.de/unternehmen/karriere/0,2828,282882-2,00.html p. 2].</ref><ref>Block, [https://books.google.com/books?id=Aa0IVOUGMIIC&pg=PA3&dq=Freudenberg+Weinheim&hl=en&sa=X&ei=YY73Tvl3xJOJAtGUkYQN&ved=0CFMQ6AEwBw#v=onepage&q=Freudenberg%20Weinheim&f=false p. 3].</ref> Stock cannot be sold to non-family members and must be surrendered by in-laws upon divorce.<ref>Block, [https://books.google.com/books?id=Aa0IVOUGMIIC&pg=PA3&dq=Freudenberg+Weinheim&hl=en&sa=X&ei=YY73Tvl3xJOJAtGUkYQN&ved=0CFMQ6AEwBw#v=onepage&q=partnership%20agreement%20states%20that%20shares%20can%20only%20be%20sold%20to%20other%20family%20members&f=false p. 4].</ref> No stockholder holds more than 2% ownership.<ref name=Behrens2>Behrens, [https://www.handelsblatt.com/unternehmen/industrie/ein-ganz-unauffaelliges-weltunternehmen/2467328.html?p2467328=2 p. 2].</ref> An annual three-day General Meeting<ref name=Zeit/> elects the Board of Partners, which consists of 7 to 13 members of whom the majority must be Freudenberg family members.<ref>[http://www.freudenberg.com/en/Company/Structure/Pages/default.aspx Company Structure], Freudenberg Group.</ref><ref>[http://www.freudenberg.com/en/Company/Structure/Pages/FreudenbergCo.aspx Company Structure: Freudenberg & Co. > Board of Partners], Freudenberg Group.</ref> The divisions are managed by a Management Board, who need not be family members.<ref>[http://www.freudenberg.com/en/Company/Structure/Pages/FreudenbergCo.aspx Company Structure: Freudenberg & Co. > Management Board], Freudenberg Group.</ref> Stockholders receive a semi-annual family newsletter and have access to an owners' [[intranet]]. A select few are on the Wine Commission, which oversees the private Freudenberg vineyards.<ref name=Scheele3/> These vineyards are the largest in the [[Badische Bergstraße|Bergstraße region]], producing 60,000 bottles of wine annually.<ref name=Behrens3/>
Freudenberg remains a family-owned private company, structured as a [[Kommanditgesellschaft]] ([[limited partnership]]) jointly held by descendants of the founder (some 300 in 2011).<ref name=Zeit/><ref name=Scheele2>{{Cite web|last=magazin|first=Martin Scheele, manager|title=Familie Freudenberg: Die Wischmopp-Millionäre|url=https://www.manager-magazin.de/unternehmen/karriere/a-282882.html|access-date=2022-03-31|website=www.manager-magazin.de|language=de}}</ref><ref>{{Cite book|last=Block|first=Joern H.|url=https://books.google.co.in/books?id&#61;Aa0IVOUGMIIC&pg&#61;PA3&dq&#61;Freudenberg+Weinheim&hl&#61;en&sa&#61;X&ei&#61;YY73Tvl3xJOJAtGUkYQN&redir_esc&#61;y|title=Long-term Orientation of Family Firms: An Investigation of R&D Investments, Downsizing Practices, and Executive Pay|last2=Block|first2=Jörn|date=2009-10-27|publisher=Gabler Verlag|isbn=978-3-8349-1959-5|language=en}}</ref> Stock cannot be sold to non-family members and must be surrendered by in-laws upon divorce.<ref>{{Cite book|last=Block|first=Joern H.|url=https://books.google.co.in/books?id&#61;Aa0IVOUGMIIC&pg&#61;PA3&dq&#61;Freudenberg+Weinheim&hl&#61;en&sa&#61;X&ei&#61;YY73Tvl3xJOJAtGUkYQN&redir_esc&#61;y|title=Long-term Orientation of Family Firms: An Investigation of R&D Investments, Downsizing Practices, and Executive Pay|last2=Block|first2=Jörn|date=2009-10-27|publisher=Gabler Verlag|isbn=978-3-8349-1959-5|language=en}}</ref> No stockholder holds more than 2% ownership.<ref name=Behrens2>{{Cite web|title=Freudenberg-Gruppe bewahrt beharrlich den Familiencharakter: Ein ganz unauffälliges Weltunternehmen|url=https://www.handelsblatt.com/unternehmen/industrie/freudenberg-gruppe-bewahrt-beharrlich-den-familiencharakter-ein-ganz-unauffaelliges-weltunternehmen/2467328.html|access-date=2022-03-31|website=www.handelsblatt.com|language=de}}</ref> An annual three-day General Meeting<ref name=Zeit/> elects the Board of Partners, which consists of 7 to 13 members of whom the majority must be Freudenberg family members.<ref>{{Cite web|title=Freudenberg Group: Organization & Portfolio|url=https://www.freudenberg.com/company/organization-portfolio|access-date=2022-03-31|website=www.freudenberg.com|language=en}}</ref><ref>{{Cite web|title=Freudenberg Group: Freudenberg & Co.|url=https://www.freudenberg.com/company/organization-portfolio/freudenberg-co|access-date=2022-03-31|website=www.freudenberg.com|language=en}}</ref> The divisions are managed by a Management Board, who need not be family members.<ref>{{Cite web|title=Freudenberg Group: Freudenberg & Co.|url=https://www.freudenberg.com/company/organization-portfolio/freudenberg-co|access-date=2022-03-31|website=www.freudenberg.com|language=en}}</ref> Stockholders receive a semi-annual family newsletter and have access to an owners' [[intranet]]. A select few are on the Wine Commission, which oversees the private Freudenberg vineyards.<ref name=Scheele3/> These vineyards are the largest in the [[Badische Bergstraße|Bergstraße region]], producing 60,000 bottles of wine annually.<ref name=Behrens3/>


Wolfram Freudenberg, a fifth-generation family member who formerly headed the [[Stuttgart Stock Exchange]], was Chairman of the Board of Partners from 2005 to 2014, succeeding Reinhart Freudenberg, who stepped down for reasons of age.<ref name=Sywottek/><ref>[http://www.manager-magazin.de/unternehmen/karriere/0,2828,362343,00.html "Freudenberg: Neue Führung im Gesellschafterausschuss"], ''Manager Magazin'' 27 June 2005 {{in lang|de}}</ref> In 2014 he was succeeded by Martin Wentzler, also a fifth-generation family member.<ref>[http://www.freudenberg.com/en/Press/Pressereleases/Pages/Wechsel-im-Vorsitz-des-Gesellschafterausschusses.aspx "Change in Board of Partners' Chair"] {{Webarchive|url=https://web.archive.org/web/20140811104711/http://www.freudenberg.com/en/Press/Pressereleases/Pages/Wechsel-im-Vorsitz-des-Gesellschafterausschusses.aspx |date=11 August 2014 }}, Press Release, Freudenberg Group, 1 July 2014.</ref> The spokesperson of the Management Board is Mohsen Sohi;<ref>[http://www.freudenberg.com/en/Press/Pressereleases/Pages/Management-Board-Changes-at-Freudenberg.aspx "Management Changes at Freudenberg"] {{Webarchive|url=https://web.archive.org/web/20140811110217/http://www.freudenberg.com/en/Press/Pressereleases/Pages/Management-Board-Changes-at-Freudenberg.aspx |date=11 August 2014 }}, Press Release, Freudenberg Group, 29 June 2012.</ref> his predecessor, Peter Bettermann, formerly head of German [[BP]], in 1997 became the first non-family member to run the company.<ref name=Zeit/><ref name=Sywottek/><ref name=Scheele3/><ref name=Scheele2/><ref name=Behrens2/>
Wolfram Freudenberg, a fifth-generation family member who formerly headed the [[Stuttgart Stock Exchange]], was Chairman of the Board of Partners from 2005 to 2014, succeeding Reinhart Freudenberg, who stepped down for reasons of age.<ref name=Sywottek/><ref>{{Cite web|last=magazin|first=manager|title=Freudenberg: Neue Führung im Gesellschafterausschuss|url=https://www.manager-magazin.de/unternehmen/karriere/a-362343.html|access-date=2022-03-31|website=www.manager-magazin.de|language=de}}</ref> In 2014 he was succeeded by Martin Wentzler, also a fifth-generation family member.<ref>[http://www.freudenberg.com/en/Press/Pressereleases/Pages/Wechsel-im-Vorsitz-des-Gesellschafterausschusses.aspx "Change in Board of Partners' Chair"] {{Webarchive|url=https://web.archive.org/web/20140811104711/http://www.freudenberg.com/en/Press/Pressereleases/Pages/Wechsel-im-Vorsitz-des-Gesellschafterausschusses.aspx |date=11 August 2014 }}, Press Release, Freudenberg Group, 1 July 2014.</ref> The spokesperson of the Management Board is Mohsen Sohi;<ref>[http://www.freudenberg.com/en/Press/Pressereleases/Pages/Management-Board-Changes-at-Freudenberg.aspx "Management Changes at Freudenberg"] {{Webarchive|url=https://web.archive.org/web/20140811110217/http://www.freudenberg.com/en/Press/Pressereleases/Pages/Management-Board-Changes-at-Freudenberg.aspx |date=11 August 2014 }}, Press Release, Freudenberg Group, 29 June 2012.</ref> his predecessor, Peter Bettermann, formerly head of German [[BP]], in 1997 became the first non-family member to run the company.<ref name=Zeit/><ref name=Sywottek/><ref name=Scheele3/><ref name=Scheele2/><ref name=Behrens2/>


In the late 1930s, the company developed operating principles that include broad diversification in both products and markets, spreading of risk, long-term thinking and the maintenance of an [[Private equity|equity ratio]] of at least 40%, and avoidance of large acquisitions while favoring small ones.<ref name=Zeit/><ref name=Directory/><ref>[http://www.freudenberg.com/en/Company/Values/Pages/GuidingPrinciples.aspx Corporate Values: Guiding Principles] {{Webarchive|url=https://web.archive.org/web/20130922004532/http://www.freudenberg.com/en/Company/Values/Pages/GuidingPrinciples.aspx |date=22 September 2013 }}, Freudenberg Group.</ref> The company would rather acquire "a handful of interesting smaller enterprises" every year than a large company that might endanger the company philosophy.<ref name=Familienunternehmen>{{cite news| author1=Heide Neukirchen | author2= Brigitta Palass | url=http://www.manager-magazin.de/magazin/artikel/0,2828,199444,00.html | title= Familienunternehmen: Freudenberg-Gruppe | magazine= Manager Magazin | date= 22 March 2002}}{{in lang|de}}</ref> In each area of activity, the company operates only where it can be first or second in the market; for example, it sells motor seals worldwide but Vileda mops mostly in Europe.<ref name=Familienunternehmen />
In the late 1930s, the company developed operating principles that include broad diversification in both products and markets, spreading of risk, long-term thinking and the maintenance of an [[Private equity|equity ratio]] of at least 40%, and avoidance of large acquisitions while favoring small ones.<ref name=Zeit/><ref name=Directory/><ref>[http://www.freudenberg.com/en/Company/Values/Pages/GuidingPrinciples.aspx Corporate Values: Guiding Principles] {{Webarchive|url=https://web.archive.org/web/20130922004532/http://www.freudenberg.com/en/Company/Values/Pages/GuidingPrinciples.aspx |date=22 September 2013 }}, Freudenberg Group.</ref> The company would rather acquire "a handful of interesting smaller enterprises" every year than a large company that might endanger the company philosophy.<ref name=Familienunternehmen>{{cite news| author1=Heide Neukirchen | author2= Brigitta Palass | url=http://www.manager-magazin.de/magazin/artikel/0,2828,199444,00.html | title= Familienunternehmen: Freudenberg-Gruppe | magazine= Manager Magazin | date= 22 March 2002}}{{in lang|de}}</ref> In each area of activity, the company operates only where it can be first or second in the market; for example, it sells motor seals worldwide but Vileda mops mostly in Europe.<ref name=Familienunternehmen />
Line 35: Line 35:
==Brands==
==Brands==
[[File:ViledaFreudenbergGroup.jpg|thumb|Vileda Freudenberg Group office]]
[[File:ViledaFreudenbergGroup.jpg|thumb|Vileda Freudenberg Group office]]
Brands listed on the company's website<ref>[https://www.freudenberg.com/company/portfolio/ The Freudenberg Brands], Freudenberg Group, retrieved 13 April 2013</ref> are:
Brands listed on the company's website<ref>{{Cite web|title=Freudenberg Group: Organization & Portfolio|url=https://www.freudenberg.com/company/organization-portfolio|access-date=2022-03-31|website=www.freudenberg.com|language=en}}</ref> are:
* Chem-Trend
* Chem-Trend
* Corteco
* Corteco
Line 69: Line 69:


==Philanthropy==
==Philanthropy==
The Freudenberg Group owns the [[Schau- und Sichtungsgarten Hermannshof]], a public [[botanical garden]] in Weinheim, which opened in 1983 and is jointly operated with the town.<ref name=Behrens3/><ref>Countess Ursula Dohna, Princess Marianne Sayn-Wittgenstein-Sayn, and Count Philipp Schönborn, ''Private Gardens of Germany'', New York: Harmony, 1986, {{ISBN|978-0-517-56512-4}}, [https://books.google.com/books?ei=t7b3Tu6QLYOOigLZzfG9Dg&id=KssLAQAAMAAJ&dq=Freudenberg+Weinheim+Private+Gardens+of+Germany&q=In+recent+years+Weinheim+has+acquired.&redir_esc=y p. 122].</ref><ref>''Gardens Illustrated'' 2002, [https://books.google.com/books?ei=N773Ttz4F4qSiALPsZGJDQ&id=yHVMAAAAYAAJ&dq=Freudenberg+Hermannshof&q=Owned+by+the+multinational&redir_esc=y n.p.].</ref><ref>"Nachrichten," ''Garten und Landschaft'' 112 (2002) [https://books.google.com/books?ei=Q7j3TrO4GOiSiAKTrcDCDg&id=krdVAAAAMAAJ&dq=Freudenberg-Stiftung+Hermannshof&q=Der+Garten%2C+der+1983+er%C3%B6ffnet+wurde%2C+ist+eine+Stiftung+der+Familie+Freudenberg.+#search_anchor p. 44] {{in lang|de}}</ref>
The Freudenberg Group owns the [[Schau- und Sichtungsgarten Hermannshof]], a public [[botanical garden]] in Weinheim, which opened in 1983 and is jointly operated with the town.<ref name=Behrens3/><ref>{{Cite book|last=Dohna|first=Countess Ursula|url=https://books.google.com/books?ei&#61;t7b3Tu6QLYOOigLZzfG9Dg&id&#61;KssLAQAAMAAJ&dq&#61;Freudenberg+Weinheim+Private+Gardens+of+Germany&q&#61;In+recent+years+Weinheim+has+acquired.&redir_esc&#61;y|title=Private Gardens of Germany|date=1986|publisher=Harmony Books|isbn=978-0-517-56512-4|language=en}}</ref><ref>{{Cite book|url=https://books.google.com/books?ei&#61;N773Ttz4F4qSiALPsZGJDQ&id&#61;yHVMAAAAYAAJ&dq&#61;Freudenberg+Hermannshof&q&#61;Owned+by+the+multinational&redir_esc&#61;y|title=Gardens Illustrated|date=2002|publisher=John Brown Pub.|language=en}}</ref><ref>{{Cite book|url=https://books.google.co.in/books?ei&#61;Q7j3TrO4GOiSiAKTrcDCDg&id&#61;krdVAAAAMAAJ&dq&#61;Freudenberg-Stiftung+Hermannshof&q&#61;Der+Garten,+der+1983+er%25C3%25B6ffnet+wurde,+ist+eine+Stiftung+der+Familie+Freudenberg.+&redir_esc&#61;y|title=Garten und Landschaft|date=2002|publisher=Callwey.|language=de}}</ref>


The [[Freudenberg Foundation|Freudenberg Stiftung]] was founded in 1984 and is endowed with stock in the parent company. It has a broad mandate "to promote science, the humanities and education as well as strengthening peaceful coexistence in society and culture" and focuses particularly on assistance to and democratic education of young people, primarily in Germany.<ref>[http://www.freudenberg.com/ecomaXL/index.php?site=FCO_EN_foundation Freudenberg foundation] {{Webarchive|url=https://web.archive.org/web/20120407040417/http://www.freudenberg.com/ecomaXL/index.php?site=FCO_EN_foundation |date=7 April 2012 }}, Freudenberg group.</ref>
The [[Freudenberg Foundation|Freudenberg Stiftung]] was founded in 1984 and is endowed with stock in the parent company. It has a broad mandate "to promote science, the humanities and education as well as strengthening peaceful coexistence in society and culture" and focuses particularly on assistance to and democratic education of young people, primarily in Germany.<ref>[http://www.freudenberg.com/ecomaXL/index.php?site=FCO_EN_foundation Freudenberg foundation] {{Webarchive|url=https://web.archive.org/web/20120407040417/http://www.freudenberg.com/ecomaXL/index.php?site=FCO_EN_foundation |date=7 April 2012 }}, Freudenberg group.</ref>

Revision as of 06:56, 31 March 2022

Freudenberg SE
Company typeFamily-owned
Societas Europaea
IndustryConglomerate
Founded1849
FounderCarl Johann Freudenberg
HeadquartersWeinheim, Baden-Wuerttemberg, Germany
Area served
Worldwide
Key people
Dr. Mohsen Sohi (CEO)
ProductsHousehold and other products
RevenueIncrease €10.038 billion (2021)[1]
Number of employees
49,836 (2021)
Websitewww.freudenberg.com

The Freudenberg Group is a German family-owned diversified group of companies whose products include housewares and cleaning products, automobile parts, textiles, building materials, and telecommunications. Its headquarters are in Weinheim, Baden-Württemberg, and it has production facilities in Europe, Asia, Australia, South and North America. The parent company was founded in 1849 as a producer of leather goods. Currently the company is owned by stock holders who are all descendants of the original founder, most of which are now affluent families that live in primarily Europe or North America.

History

The company was founded in 1849 by Carl Johann Freudenberg, the son of a wine merchant,[2] and his partner, Heinrich Christoph Heintze; the two took over a tannery at Weinheim. For the next 80 years, the company produced leather products exclusively.[3][4] Hurt by the worldwide economic depression that began in 1929, and by shortages during World War II, it diversified into seals for motors made first of leather and later of artificial rubber (the Simmerring, named for an engineer called Walther Simmer),[5] which led to fabrics and to cleaning fabrics and tools when it was noted that the company's cleaning ladies were using discarded scraps of the experimental fabrics.[3][4] Vileda (from German: wie Leder, "like leather") window-cleaning cloths were first marketed in 1948.[6]

In the mid-1990s the company reorganized with a "highly decentralized organizational structure": it has 16 divisions or areas of business incorporating 430 independent units.[4][7][8] Three-quarters of its business is as a supplier to other companies.[9] In 2004 Freudenberg had employees in 43 countries.[3][10][11] Recently it has focused attention on markets in China and Japan; for example, it provided the floor coverings for the Shanghai Metro stations.[12]

In 2002 the company closed its last leather tannery, marking the effective end of the leather industry in Germany.[4] However, today Vileda is a market leader in Europe.[13] All German cars contain parts made by another Freudenberg subsidiary, and German-made outdoor clothing contains fibers made by yet another.[4] Almost all major airports have flooring made by another Freudenberg subsidiary.[14] In 2004, Freudenberg Group made an initial entry into the global medical market with the creation of Freudenberg Medical EN. In 2020, the group was a 8,8 billion euro business with more almost 48,000 employees, approximately 11,000 in Germany. .[4]

Ownership and philosophy

Freudenberg remains a family-owned private company, structured as a Kommanditgesellschaft (limited partnership) jointly held by descendants of the founder (some 300 in 2011).[4][15][16] Stock cannot be sold to non-family members and must be surrendered by in-laws upon divorce.[17] No stockholder holds more than 2% ownership.[18] An annual three-day General Meeting[4] elects the Board of Partners, which consists of 7 to 13 members of whom the majority must be Freudenberg family members.[19][20] The divisions are managed by a Management Board, who need not be family members.[21] Stockholders receive a semi-annual family newsletter and have access to an owners' intranet. A select few are on the Wine Commission, which oversees the private Freudenberg vineyards.[12] These vineyards are the largest in the Bergstraße region, producing 60,000 bottles of wine annually.[9]

Wolfram Freudenberg, a fifth-generation family member who formerly headed the Stuttgart Stock Exchange, was Chairman of the Board of Partners from 2005 to 2014, succeeding Reinhart Freudenberg, who stepped down for reasons of age.[5][22] In 2014 he was succeeded by Martin Wentzler, also a fifth-generation family member.[23] The spokesperson of the Management Board is Mohsen Sohi;[24] his predecessor, Peter Bettermann, formerly head of German BP, in 1997 became the first non-family member to run the company.[4][5][12][15][18]

In the late 1930s, the company developed operating principles that include broad diversification in both products and markets, spreading of risk, long-term thinking and the maintenance of an equity ratio of at least 40%, and avoidance of large acquisitions while favoring small ones.[4][6][25] The company would rather acquire "a handful of interesting smaller enterprises" every year than a large company that might endanger the company philosophy.[26] In each area of activity, the company operates only where it can be first or second in the market; for example, it sells motor seals worldwide but Vileda mops mostly in Europe.[26]

Brands

Vileda Freudenberg Group office

Brands listed on the company's website[27] are:

  • Chem-Trend
  • Corteco
  • EagleBurgmann
  • evolon
  • Ecozero
  • FIT (Freudenberg IT)
  • Freudenberg Medical
  • Freudenberg Sealing Technologies
  • Gala
  • HelixMark
  • Klüber Lubrication
  • Lutradur
  • Lutraflor
  • Lutrasil
  • Merkel
  • MicronAir
  • OKS
  • Pellon
  • Simrit
  • Terbond
  • Texbond
  • SoundTex
  • SurTec
  • Vibracoustic
  • Vildona
  • Vileda
  • Viledon
  • Vilene
  • Vilmed

Freudenberg Household Products Division also sells products under the O-Cedar brand name in the US.[28]

Philanthropy

The Freudenberg Group owns the Schau- und Sichtungsgarten Hermannshof, a public botanical garden in Weinheim, which opened in 1983 and is jointly operated with the town.[9][29][30][31]

The Freudenberg Stiftung was founded in 1984 and is endowed with stock in the parent company. It has a broad mandate "to promote science, the humanities and education as well as strengthening peaceful coexistence in society and culture" and focuses particularly on assistance to and democratic education of young people, primarily in Germany.[32]

References

  1. ^ Report
  2. ^ Hucke, Johannes (2009). Bergstraße-Weinlesebuch: die Winzer der Badischen und der Hessischen Bergstraße von Süd nach Nord ; mit kulinarischen, anekdotischen und sogar landeskundlichen Hinweisen ; [Special: Heidelberger Wein] (in German). Info Verlag. ISBN 978-3-88190-504-6.
  3. ^ a b c magazin, Martin Scheele, manager. "Familie Freudenberg: Die Wischmopp-Millionäre". www.manager-magazin.de (in German). Retrieved 31 March 2022.{{cite web}}: CS1 maint: multiple names: authors list (link)
  4. ^ a b c d e f g h i j "ZEIT ONLINE | Lesen Sie zeit.de mit Werbung oder im PUR-Abo. Sie haben die Wahl". www.zeit.de. Retrieved 31 March 2022.
  5. ^ a b c Christian Sywottek, "Das Matroschka-Prinzip," Archived 10 February 2013 at archive.today, interview with Wolfram Freudenberg, Brand Eins October 2008 (in German)
  6. ^ a b Grant, Tina (2001). International Directory of Company Histories. St. James Press. ISBN 978-1-55862-446-7.
  7. ^ As of April 2013, under Business Groups the company lists the following four Business Areas, each of which incorporates several Business Groups: Seals and vibration control technology; nonwovens and filtration; household products; specialties and others. See also Company Structure, Freudenberg Group.
  8. ^ Block, Joern H.; Block, Jörn (27 October 2009). Long-term Orientation of Family Firms: An Investigation of R&D Investments, Downsizing Practices, and Executive Pay. Gabler Verlag. ISBN 978-3-8349-1959-5.
  9. ^ a b c "Freudenberg-Gruppe bewahrt beharrlich den Familiencharakter: Ein ganz unauffälliges Weltunternehmen". www.handelsblatt.com (in German). Retrieved 31 March 2022.
  10. ^ 53 in 2008, according to Sywottek.
  11. ^ As of April 2013, 58 countries: Freudenberg Group, retrieved 13 April 2013.
  12. ^ a b c magazin, Martin Scheele, manager. "Familie Freudenberg: Die Wischmopp-Millionäre". www.manager-magazin.de (in German). Retrieved 31 March 2022.{{cite web}}: CS1 maint: multiple names: authors list (link)
  13. ^ Dworschak, Manfred (1 October 2000). "»Materie am falschen Ort«". Der Spiegel (in German). ISSN 2195-1349. Retrieved 31 March 2022.
  14. ^ "Freudenberg-Gruppe bewahrt beharrlich den Familiencharakter: Ein ganz unauffälliges Weltunternehmen". www.handelsblatt.com (in German). Retrieved 31 March 2022.
  15. ^ a b magazin, Martin Scheele, manager. "Familie Freudenberg: Die Wischmopp-Millionäre". www.manager-magazin.de (in German). Retrieved 31 March 2022.{{cite web}}: CS1 maint: multiple names: authors list (link)
  16. ^ Block, Joern H.; Block, Jörn (27 October 2009). Long-term Orientation of Family Firms: An Investigation of R&D Investments, Downsizing Practices, and Executive Pay. Gabler Verlag. ISBN 978-3-8349-1959-5.
  17. ^ Block, Joern H.; Block, Jörn (27 October 2009). Long-term Orientation of Family Firms: An Investigation of R&D Investments, Downsizing Practices, and Executive Pay. Gabler Verlag. ISBN 978-3-8349-1959-5.
  18. ^ a b "Freudenberg-Gruppe bewahrt beharrlich den Familiencharakter: Ein ganz unauffälliges Weltunternehmen". www.handelsblatt.com (in German). Retrieved 31 March 2022.
  19. ^ "Freudenberg Group: Organization & Portfolio". www.freudenberg.com. Retrieved 31 March 2022.
  20. ^ "Freudenberg Group: Freudenberg & Co". www.freudenberg.com. Retrieved 31 March 2022.
  21. ^ "Freudenberg Group: Freudenberg & Co". www.freudenberg.com. Retrieved 31 March 2022.
  22. ^ magazin, manager. "Freudenberg: Neue Führung im Gesellschafterausschuss". www.manager-magazin.de (in German). Retrieved 31 March 2022.
  23. ^ "Change in Board of Partners' Chair" Archived 11 August 2014 at the Wayback Machine, Press Release, Freudenberg Group, 1 July 2014.
  24. ^ "Management Changes at Freudenberg" Archived 11 August 2014 at the Wayback Machine, Press Release, Freudenberg Group, 29 June 2012.
  25. ^ Corporate Values: Guiding Principles Archived 22 September 2013 at the Wayback Machine, Freudenberg Group.
  26. ^ a b Heide Neukirchen; Brigitta Palass (22 March 2002). "Familienunternehmen: Freudenberg-Gruppe". Manager Magazin.(in German)
  27. ^ "Freudenberg Group: Organization & Portfolio". www.freudenberg.com. Retrieved 31 March 2022.
  28. ^ About O-Cedar, O-Cedar.com, retrieved 13 April 2013.
  29. ^ Dohna, Countess Ursula (1986). Private Gardens of Germany. Harmony Books. ISBN 978-0-517-56512-4.
  30. ^ Gardens Illustrated. John Brown Pub. 2002.
  31. ^ Garten und Landschaft (in German). Callwey. 2002.
  32. ^ Freudenberg foundation Archived 7 April 2012 at the Wayback Machine, Freudenberg group.

Further reading

  • Carl Freudenberg. 150 Years of Freudenberg: How a Family Enterprise Developed from a Tannery into an Internationally Diversified Enterprise. [Mannheim]: Freudenberg, 1999. OCLC 313963779
  • Pia Gerber. Der lange Weg der sozialen Innovation—wie Stiftungen zum sozialen Wandel im Feld der Bildungs- und Sozialpolitik beitragen können: eine Fallstudie zur Innovationskraft der Freudenberg Stiftung / The Long March of Social Innovation—How Charitable Foundations can Contribute Towards Social Change in the Fields of Education and Social Policy: A Case Study on the Innovative Vigor of the Freudenberg Foundation. Opusculum 21. Berlin: Maecenata-Institut für Philanthropie und Zivilgesellschaft, November 2006. OCLC 643152814 Google preview (in German)

External links

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