Our History

Humble Beginnings

Rouen, France, 1878. Henri Goldstuck, a young Latvian immigrant, looks out across the docks. Ships come and go, and the arteries of an industrialized Europe pulsate rapidly before his eyes in one of the continent’s largest ports. Opportunities abound. At that moment, he seizes one. An opportunity that will one day become the global benchmark in quality and integrity.

Henri realizes that grain exporters are losing money as they are not represented at the port of destination. Importers only pay for the amount of grain received, rather than the shipped amount. During transit, and especially loading and unloading, exporters suffer losses in the volume of grain due to shrinkage and theft. He decides to defend exporters’ rights by inspecting and verifying the quantity and quality of the grain on arrival with the importer.

First Inspections

Henri borrows money from an Austrian friend and begins inspecting grain shipments on arrival in Rouen. The service reduces exporters’ losses and increases their profits. Soon, word spreads and business grows rapidly. The two young entrepreneurs go into business together and form a company on December 12, 1878.

Within a year, the company opens offices in France’s three largest ports: Le Havre, Dunkirk and Marseilles. An early innovation, Full Outturn Guarantee (FOG), helps the company to build its reputation. It’s an innovation that SGS still provides today. The FOG service reimburses the exporter for the loss of grain during shipping, as long as SGS is able to inspect the cargo at both loading and unloading.

First, SGS establishes FOG for the North American grain trade with Europe. It's a success. The service is expanded around the world and generates considerable revenue. By 1913, the company is inspecting 21 million tonnes of grain per year across a network of 45 offices throughout Europe. Now, SGS is the leader in grain inspection.

Turbulent Times

The First World War descends across Europe. SGS customers and offices are divided by the trenches. In 1915, the company moves its headquarters from Paris to Geneva, Switzerland, to continue operations from a neutral country. On July 19, 1919, the company adopts the name it carries to this day, Société Générale de Surveillance.

By 1928, the company has grown internationally, with offices and affiliates in 21 countries around the world. In 1939, the company expands into the inspection and analysis of raw materials, minerals and metals through the acquisition of laboratories in Europe. In addition, the company starts operating in South America, with offices in Argentina and Brazil, delivering agricultural inspection services.

However, the Second World War brings severe disruption to global trade. SGS soon makes a rapid return to profitability by 1946 through contracts with the Allied powers for inspecting consumer goods destined for soldiers. SGS also plays a key role in inspecting imports entering Europe under the Marshall Plan.

Post-War Expansion and Diversification

1950. 80% of SGS revenue comes from its core Agricultural Services business. To ensure long-term survival, SGS needs to diversify. So, in 1955, the company’s Industrial Services business begins inspecting industrial machines and goods. In 1965, it grows further, with the acquisition of a company that specializes in non-destructive testing.

The Oil, Gas & Chemical Services business also begins as SGS acquires several leading companies in oil and petrochemical products testing. The Minerals Services business grows by providing Full Outturn Guarantee (FOG) services. Decolonization in Africa and Asia, as well as development in Latin America, provides SGS with new markets to explore.

The Governments & Institutions Services business is established to provide pre-shipment inspection services to customs authorities. SGS assesses the value of goods in the country of supply, allowing the collection of appropriate taxes and duties from importers and exporters. In 1965, the company wins its first contract for this service in the Congo. Business in South America also expands to include consumer testing, industrial and certification services.

At the dawn of the 1970s, awareness of industrial environmental impact is heightened. New laws are established to clean up and protect the North Sea. SGS begins providing environmental consultancy and remediation services to the oil and gas sector. Demand for environmental services soon spreads to other business sectors.

Moving Towards a Sustainable Future

1980. Half of the company’s revenue is now generated from services that had not existed in the previous decade. The company now has 113 offices, 57 laboratories and 9,500 employees working in over 140 countries around the world. In 1981, the company goes public. Less than four years later, sales reach an impressive CHF 1.5 billion.

The late 1980s see the creation of the Life Science Services and Systems & Services Certification business lines through acquisitions. Automotive Services emerge out of the company’s loss adjusting services for the automotive industry.

As we enter the 1990s, great opportunities arise for a company whose success was, and continues to be, based on global trade. With the fall of the Soviet Union, previously closed economies open for business. By the end of the decade, SGS has opened 28 new offices in the region.

Booming economies in Asia and Latin America also add to the company’s growth. In 1991, SGS expands into China through the start of a joint venture. Today, SGS China has expanded to a network of over 40 offices and laboratories serving the inspection and testing needs of the company’s entire customer base, especially those in its Consumer Testing Services business.

Positioned for Growth

By the start of the new millennium, wide-ranging corporate restructuring results in the formation of ten business segments to better fulfill customer needs.

Today, SGS operates across a wide variety of industry sectors, employs more than 96,000 employees across 2,600 offices and laboratories and is active in nearly every country in the world.

The company has steadily grown to become the industry leader through continual improvement and innovation, by reducing risk and improving the productivity and efficiency of its customers’ operations. Moving forward, SGS is well positioned for growth and will continue to look beyond customers’ and society’s expectations to deliver market-leading services wherever they are needed.