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Etheinian Manufacturing plc

Formerly	Etheinian Manufacturing Industries
Former type	Public limited company (formerly State-owned enterprise)
Industry	Industrial conglomerate
Fate	Liquidated after bankruptcy
Founded	February 21, 1972 (1972-02-21)
Defunct	September 5, 2011 (2011-09-05)
Area served	Worldwide
Products	- Heavy industry - Defense - Vehicles - Electronics & computers - Materials

Etheinian Manufacturing (EM) was a major Etheinian manufacturing conglomerate that produced industrial machinery, automobiles, aircraft, weapons systems, commercial & consumer electronics, appliances, and optical devices. It was also involved in metal refining and semiconductor production. The company was originally founded in 1972 as Etheinian Manufacturing Industries (EMI), a state-owned enterprise formed out of the nationalization of several private businesses. It grew steadily over the next two decades to become the second-largest industrial company in the United Federation of Etheinia, and the country's third-largest overall employer.

Despite its size (or perhaps because of it), by the mid-90s EMI was operating at a consistent loss in terms of net annual revenue, relying on government subsidies to keep itself afloat. It became a key target for restructuring under President Alejo Ibáñez's economic reforms, with the goal of making the company more efficient & profitable. Under the direction of chairman Keir Aitken, EMI was privatized in 1997 to form a public limited company. Although profits briefly rebounded during the 2000s, increased competition in the marketplace combinded with a heavy debt load led the company to declare bankruptcy in 2009. Etheinian Manufacturing was eventually liquidated in 2011, with most of its former operations being split up and acquired by other companies.

History

Formation

EMI's old logo, used from 1972 to 2000

Etheinian Manufacturing Industries was one of 14 state-owned companies created by the 1972 National Enterprise Organization Act, which replaced the informal state management scheme that had been implemented during the Etheinian unification process. Under the 1972 Act, smaller businesses were nationalized and integrated into a single large company based on economic sector. EMI was formed to produce industrial & electrical equipment, trains, and automotive parts, as well as tanks and artillery for the military. The company was formally incorporated on February 21st, 1972.

Expansion

In 1976, as the Etheinian government was slashing the budget for rail transport in favor of road infrastructure, EMI requested to close its unprofitable passenger train division and expand its automotive parts division to produce actual automobiles. This request was approved, and by 1977 the first EMI-built cars were rolling off the assembly line. Also in 1977, the company purchased a small airplane factory in Kiraz, which would eventually become the central production hub for its aerospace division.

EMI's expansion increased greatly under the leadership of chairman Liam Haugseth, who was appointed in 1981 and remained in power for 13 years. Haugseth, who had a close friendship with President Andrés Sandalio Gérard, held signifigant influence over Etheinian industrial policy at the time. He was a major proponent of "sectorization", a process in which state-owned companies were allowed to expand outside of their original legally-defined scope in order to diversify their operations. Chairman Haugseth took advantage of the new sectorization laws, as well as generous defense spending and the increased availability of foreign capital, to grow EMI into a massive industrial conglomerate.

One of the biggest areas of growth was in electronics and computing, which Haugseth saw as the way of the future. EMI invested heavily into electronics manufacturing as well as R&D over the next decade, quickly becoming the largest technology company in the nation. To keep costs down, it also pursued vertical integration by building its own semiconductor refining facilities, which allowed EMI to sell its products at a price affordable to the average Etheinian. Aerospace was another area of success; in 1985, EMI scored a 10-year government contract to produce military aircraft, which would eventually prove to be one of the most lucrative deals in the company's history. The profits from this contract were used to further expand the company's aircraft manufacturing facilities.

Eventually, EMI would grow large enough to begin acquiring foreign businesses. In 1987, Liam Haugseth bought a 51% stake in Uchiyama Scientific (a manufacturer of high-end optical instruments) and LuckStar Home Products (a domestic appliance company). Both companies would eventually be purchased outright.