Following the death of his father in 1887, Friedrich Alfred Krupp expands the enterprise into a horizontally diversified concern. In 1886 the company had already acquired the Annen steel mill near Witten. In 1893 the Gruson works in Magdeburg is purchased (takeover agreement of 1892). In 1896/1902 Krupp takes over the Germania shipyard in Kiel (Schiff- und Maschinenbau AG Germania). Here Krupp takes up the construction of diesel engines in 1906 - Rudolf Diesel, in collaboration with Krupp and Maschinenfabrik Augsburg having developed the first working diesel engine in 1897.
