Heavy Industry in Transylvania 1880–1914: State and Private Investments
Heavy Industry in Transylvania 1880–1914: State and Private Investments

Summary/Abstract: After the Austro-Hungarian Compromise of 1867, one of the priorities of the Hungarian government was the creation of a railway network that would facilitate the economic development of the country. The boom in railway constructions and the general demand for iron products in the economy stimulated the investments in the metallurgic industry. Transylvania, the easternmost statistical region of the Kingdom of Hungary, was one of the richest lands in iron ore and coal. The state iron ore mines and furnaces around Hunedoara and the private company at Cãlan (Kalán, Klandorf) became the most important actors in the field. The state investments in Hunedoara and the German (later Viennese) capital inflow to Cãlan increased the production capacities and the quality of the products. The need for coal of the developing railway network encouraged coalmining. In Transylvania, the 1880s saw the beginning of large-scale coalmining in the Jiu Valley. Alongside the State Coal Mining Company, two large companies and a smaller private business were interested in the region. The French, and the Viennese capital in partnership with the big investors from Budapest, brought about the most important industrial developments in the southwestern part of Transylvania. Apart from coal extraction, they were interested in the processing of brown coal. The Uricani-Jiu Valley Company (with French and Austrian capital) also built coke ovens and a benzene distillery.

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