Secret coal
SHV’s German coal supplier restricts SHV to dealing only in coal from the Ruhr area mines. Yet trade in English coal is on the rise. As the main importer in early 1900s, SSM represents a formidable competitor to SHV. But in a deal brokered by its independent investment arm, SHV secretly takes over its rival.
German restrictions
In the same year SHV is established, another coal company is founded: the Scheepvaart- en Steenkolen Maatschappij (Shipping and Coal Company – SSM). SSM is the main importer of coal from England - the most important source of Dutch supplies along with Germany. As such, it is also SHV’s closest competitor.
In 1904, SHV signed a contract with the German RWKS to acquire a monopoly over the trade in German coal. The contract explicitly prohibits SHV from dealing in coal from any source other than its own mines in the Ruhr area – and especially from England. But just one year later, the RWKS is unable to meet demand due to mining strikes.
SHV feels obliged to look for other sources, breaching its contract with the German supplier for the first time. It marks the start of a new partnership with SSM – and the idea of permanently circumventing contractual restrictions is born.