When Falconbridge acquired the Kristiansand refinery in 1929 the plant had been in existence for nineteen years. Falconbridge took over most of its staff, its technological prowess and its company culture. As we shall see in the coming chapters, the development under Falconbridge's ownership was to a large degree influenced by what had happened in the eventful years of 1910–24.

Back in 1910 Kristiansands Nikkelraffineringsverk (KNR) set up business in Kolsdalen right outside the city centre. KNR was based on cutting-edge technology, invented in the United States by the industry insider Victor Hybinette. As the Norwegian nickel deposits were rather limited, Hybinette and his co-investors were determined to use the nickel-refining technology and patents abroad. This was no easy task in the vertically integrated and oligopolistic nickel industry, but the First World War offered KNR possibilities for vertical integration and expansion overseas. The subsequent investments in the Canadian nickel producer BANC were the largest Norwegian FDI ever. However, due to very questionable business ethics, mismanagement and costly delays because of wartime conditions everything was lost.

KNR's road to bankruptcy was such a tormented and highly publicized process that it made it close to impossible to re-establish and refinance a strong Norwegian-owned nickel company. This paved the way for Falconbridge's later acquisition of the Kristiansand refinery.

Norwegian Nickel, International Competition and Cartelization

In Norway, nickel production began in the late 1840s. When production peaked in the mid-1870s there were around forty mines and seven smelting plants in operation.