Beginning of the First World War
When the First World War broke out at the beginning of August in 1914, the common belief was that the war would only last for a couple of months at most. The shipyard management did not expect to have many orders, and therefore reduced the headcount. But after a while the order intake increased; the Imperial Russian Army ordered more vessels, ship repair projects and gave various other assignments. The earlier declared ban the Empire had placed on orders from Finnish companies was practically omitted.[8]
Over time the orders exceeded the capacity of the premises. By 1914 the company made plans for a new brass foundry which was taken into use in the same year. A new engineering shop followed two years later. The premises were enlarged significantly in 1915, when the company leased an area which comprised nearly 28,000 m² land and 4,400 m² water. The new area was planned to be used for large naval and cargo ship-building. The company built a new steel plate workshop and model workshop, and in 1917 followed a rib furnace, sawmill and two wooden houses for the company personnel. After constructing new cradles, the total value of the investments reached 1,300,000 marks.[8]
The dry dock was extended from 106.7 metres to 108.9 metres. In 1916 the company bought a house next to the yard area, at the other side of Munkkisaarenkatu, for a residence for its workers.[8]
Between 1914 and 1917 total 400 vessels were docked. 135 were navy vessels which were repaired. In 1916 the company built two large mine countermeasures steamers, which were one year later followed by two nearly alike vessels. In 1917 the company started to build a diesel-powered vessel for the Russian Hydrographic Office. The company headcount exceeded 1,500 people. In 1916 engineer K. Albin Johansson started as shipbuilding master and captain Ludwig Schwindt as vice president.[8]
By 1917 the company share capital reached 6,000,000 marks. Due to the favourable workload, Hietalahti Shipyard and Engineering Works could pay high dividends to its owners. The good order backlog also created problems and risks. After 1915 raw material availability became worse and the prices increased due to the war. The situation worsened in 1917, when strikes, rioting and general disorder increased in many Finnish cities. The workers in Finland demanded the work day to be limited to eight hours; when unruly and armed Russian soldiers joined to support the Finnish workers in April, the employers' association agreed to the demands. This calmed down the environment for the summer, but new troubles followed in the autumn. The atmosphere became restless and the company managers were threatened. The Russian Provisional Government was overthrown in the October Revolution and in the middle of November, a general strike emerged in Finland. Although the strike lasted only for several days, the workload was reduced because the Russian military did not place new orders in the chaotic situation; receiving payment for the ongoing repairs also became uncertain, and the high inflation of the Russian ruble ate the viability.[8]
On 6 December 1917 Finland declared itself independent from Russia.
