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1990 Changes in the North

Philips’ withdrawal from the defence activities has significant impacts on the German locations: In March 1990, the business area Philips Systeme und Sondertechnik (PST) with its subsidiaries Radarleit and Elektro Spezial becomes the independent Deutsche System-Technik GmbH (DST) by means of a management buyout. Together with the present divisions in Kiel and Bremen as well as several subsidiaries and interests, the Telematik-Systemhaus provides solutions in the fields of sensors, communication, optronics, traffic control technology, simulation, environmental technology and industrial automation. In addition to the acquired military portfolio, civil business shall be accelerated.

Shortly afterwards, HSA founds Hollandse Signaalapparaten GmbH in Wilhelmshaven as an own service company under the parent company Thomson-CSF. The ambitiously started DST as a young middle-class business, however, cannot break into the market. By the turn of the year 1996/97, the company merges into HSA – the former Philips subsidiaries are reunited.

1990 Rebuilding of the East German economy

On 3 October, the German Democratic Republic ceases to exist and five more federate states belong to the federal republic. The historical caesura has also significant impacts on the electronics industry: The defence budgets are low and a new market opens up for civil activities in the East. Standard Elektrik Lorenz is involved in the construction of the telecommunications and railway network in the Eastern states of Germany and wants to push the export to the former Eastern Bloc States. Still in the year of German unity, it takes over the RFT companies Funk- und Fernmeldeanlagenbau Berlin, Sternradio Rochlitz and Nachrichten-Elektronik Arnstadt. They are merged into the new RFT SEL Nachrichtenelektronik GmbH. One year later, the Entwicklungsgesellschaft für Nachrichtentechnik mbH (EFN) in Berlin-Oberschöneweide follows. The rebuilding of the East German economy, however, is a difficult task. Only some companies remain competitive under free market conditions. SEL has to close down several locations. The factory in Arnstadt is upgrade with substantial investments and retraining measures. The future organisation is implemented in the years 1993-95. The Berlin railway signalling technology manufacturing moves to Arnstadt. The RFT in the company name is omitted.

1992 Chips made in the Fildern area

After Thomson-CSF’s semi-conductor business has been acquired by the Franco-Italian joint venture company ST Microelectronics, six former Thomson employees founded a new company in 1988. Gemplus International focuses on the manufacturing of chip cards that are considered a less profitable niche product in the late 1980s. France Télécom as well as the German Federal Post Office were acquired as major customers, and in 1992, Gemplus set up the first foreign branch in Filderstadt near Stuttgart. With the breakthrough of mobile telephony, public telephones disappear and the company switches to SIM cards. Bank and health card follow at a later stage. The 130 employees on site produce tens of thousands of cards under highest safety standards – per day. In 2006, Gemplus merges with its former competitor Axalto. The new Gemalto N.V. is registered in the Netherlands.

1992 Connected by SEL

In the early 1990s, SEL AG pushes on the establishment of a modern transport and telecommunications infrastructure. Right on time for the world exhibition in Seville and the Summer Olympic Games in Barcelona, the high-speed railway line between Madrid and Seville is opened. SEL is responsible for electronic interlocking and for the continuous train control system – a lighthouse project for the company from Stuttgart and its Spanish subsidiary SEL Señalización.

Digital switchboards and optical fibre technology are available on the local telephony market. In July 1992, the Federal Post Office started commercial operation of the D1 network in the new and pan-European mobile radio standard GSM. Alcatel and its subsidiaries were substantially involved in the development. In the summer of 1991, SEL handed over the first systems to the Federal Post Office for test operations. In July 1992, officially operates under the name of Alcatel SEL AG. But there are difficult times ahead: The telephone business falls behind the competition; the expected expansion of the optic fibre network by the Federal Post Office is carried out too slow, and the export volume to Eastern Europe will never achieve the challenging objectives.

1997 European restructuring

The year 1997, brings a serious restructuring of the European industry in the fields of defence electronics and air traffic management with it. In France, Lionel Jospin’s newly elected socialist government stops the only recently implemented strategy on the privatisation of public companies – the planned acquisition of Thomson-CSF by foreign bidders is off the table. A strategic alliance of significant French companies is formed instead, to withstand international competition in times of declining military expenditure. Thomson-CSF, Alcatel, Aérospatiale and Dassault shall join forces. Thomson-CSF takes over the partners’ relevant business divisions, including the defence electronics and air navigation systems divisions from the German Alcatel subsidiary SEL. This association creates the major provider for radar, military and satellite communication in Europe.

At the same time, Thomson-CSF fails in its attempts to acquire the Siemens AG held for sale. Nevertheless, a cooperation comes into being: Both companies found the joint venture company Airsys ATM for civil air traffic management. Four years later, Siemens will exercise its selling option and sell its 40% share to what is now Thales.