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AEG was established in Berlin during 1883, after obtaining the Edison system patent for producing incandescent lamps in Germany. The first AEG factory therefore produced lamps, which meant it entered the same sector as other major electrical component manufacturers such as the US company General Electric. It was the development of electrical supplies, electromechanical engineering and market demands that pushed AEG to develop in other sectors such as small and, later, large electric motors.

Another stage in the business development, that established the AEG brand in Europe and throughout the world, was its production of low voltage devices, switchgear and transformers for low, medium and high voltages.

With its market leading research and development centres, it became a pioneer in the development of more modern technology.

This accelerated when the company's focus and production of electrical devices turned towards the navy, the railway, white goods and electric household equipment market.

The organisation quickly became a leading force in supplying all sorts of products from industrial items such as over-voltage dischargers, relays of every type, rectifiers and measuring instruments to domestic products such as lighting, irons, vacuum cleaner, ovens and so on.

All the low-voltage electrical products were covered by the 40 or so factories that existed until 1998, when the AEG group divided into many autonomous entities with new partners.