AB Lux is founded in Stockholm, Sweden and launches the Lux lamp – a kerosene lamp for outdoor use – which proves to be a tremendous sales success. The lamp is also used in lighthouses all over the world.
“Lux moves to a newly constructed factory on Lilla Essingen, Stockholm. The company feels the competition from electric lighting and looks for new products.”
Swedish-born salesman Axel Wenner-Gren spots an American electric vacuum cleaner, Santo, in a store window in Vienna, Austria, and realizes that this product has great potential – provided it can be made lighter and smaller.
Elektromekaniska AB is founded by the engineer Sven Carlstedt. The company begins manufacturing the Salus, a copy of the Santo vacuum cleaner, for the Swedish market.
Collaboration between Wenner-Gren and AB Lux begins (Lux is now owned by AGA). Their first vacuum cleaner, the 14 kg Lux I, is produced at the Lilla Essingen factory. Wenner-Gren becomes an agent for Lux in Germany, the United Kingdom and France.
Direct sales begin in Sweden. The salesmen, who pull the heavy machines through the streets on hand-carts, must arrange a demonstration time when the housewife can promise that her husband/breadwinner will be home to approve the investment.
Elektromekaniska constructs a universal engine that works with both direct and alternating current. Lux Model II is developed. It weighs 9 kg and sells for half the price of the Lux I. As the sole agent, Wenner-Gren sells it in Germany, France and the UK. Demand is so high that the Lux factory struggles to keep up.
Wenner-Gren sets up sales company Svenska Elektron AB for home demonstrations and launches Model III, also called Elektron (Lux doesn’t want its name to be connected to this product). It’s a very light cleaner weighing 3.5 kg. While it is harder to sell since the suction power is not good enough, the Elektron shows that it is possible to develop a light cleaner.
Elektron (in which Wenner-Gren owns a large interest) purchases all shares of Elektromekaniska. Wenner-Gren is elected a member of the Board of Elektromekaniska and likewise, Elektromekaniska’s managing director Sven Carlstedt joins the Board of Elektron.
Elektron and Lux sign a cooperative agreement with the following main points: Lux is to take over operations of Svenska Elektron. Svenska Elektron is to buy 49% of the shares of AB Lux. AGA becomes the majority owner in Elektron with 51 % of the shares. Wenner-Gren and Carlstedt are elected to the Board of Lux, Wenner-Gren as CEO and Carlstedt as technical director. Lux is to take over operations of Svenska Elektron, increasing its share capital from 3 million to 4 million SEK.
