From horseshoe nails to paper clips

In the early days of nineteenth century, the industrial scene in Norway was extremely fragmented. The country lacked the necessary infrastructure to allow product-specialization. Business growth and survival depended on both vertical and horizontal integration. Most supplies were difficult to obtain so whenever possible they had to be produced domestically. This environment favored the development of business that supplied local communities with everything form food and clothing to tools, schooling and even health services.

It was into this pre-industrial world, in the small village Gjövik, that from 1832 to 1860, Mustad grew to become one of the leading Norwegian suppliers of small metal products like fencing wire, nails, pins, horseshoe nails, shipbuilding nails, paper clip, thumb tacks and an almost endless series of other wire based products.

Rapid growth through mechanical innovation
In the latter half of the last century Mustad developed advanced machinery for the automatic production of horseshoe nails. This technological breakthrough gave the company a real competitive advantage which led to a rapid expansion of business largely through exports to various European countries. Almost in parallel, the company's fish hook business grew substantially thanks to the development of new production machinery by engineers hired from leading English hook makers together with Mustad's own specialists. The resulting technological advantage was such that Mustad soon became competitive on a European scale in this market too.

Pictures:
< the first factory
> inside the first factory