ABSTRACT
This chapter examines the restructuring efforts of the EKO Stahl Company. As one of the German Democratic Republic's (GDR) largest flat-rolled steel producers, EKO supported the entire city of Eisenhuttenstadt, which was founded along with the steel mill in 1951. EKO managers were able to stabilize the company and make significant progress adapting it to the demands of the market economy. EKO Stahl and Eisenhuttenstadt came into existence in 1951 when GDR planners sought to create jobs for the thousands of Germans returning from Germany’s prewar possessions in the east. EKO’s top executives focused on the company’s core business by divesting many tangential operations. In many ways, EKO Stahl has been a model for transforming businesses of the former Eastern Bloc into capitalist competitors. The company’s long-term success, however, depended on its ability to muster the necessary capital and political clout to support investment in the most efficient steel production processes.
