100 Years LACH DIAMANT – Part 11

The question was: “If not now, then when?” – LACH DIAMOND INC. is founded.

“When I held my first diamond in my hand in 1908, I would not have imagined that one day diamonds would not only be used in the automobile industry but also for the machining of wood and plastics.”

Jakob Lach, the company founder, said this on camera in 1980. It would become the preface for the first presentation of a new technique for machining wood and plastics – using diamonds as cutting material – the Dia Tool. This video, with audio translated into multiple languages, has lost none of its relevance for the choice of appropriate tools within the furniture, flooring and composite industries.

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Company founder Jakob Lach, 1894-1984 (photo taken in 1980)

Should you, dear reader, have stumbled over the final sentence in my last article “The adventure diamonds love wood in America had begun”, perhaps with the thought: “Oh, I always thought that since 1969, LACH DIAMANT had risen to its position as an innovative partner of the automobile and supply industry with the development of BorazonT CBN grinding wheels or HSS tool grinding and grinding of high-alloyed steels, as well as, in 1973, with the manufacturing of the first polycrystalline diamond (PCD) cutting tools – but now wood?” Then my answer is: yes and no – let’s just try it.

The following three trademarks illustrate and symbolize the 100-year-long entrepreneurial activity of the company Jakob Lach, founded by my father in 1922:

journal of hp tooling
This article was published by hp tooling (issue #4 | 2024) as part 11 of the 100 Years LACH DIAMANT series.
journal of hp tooling

This article was published by hp tooling (issue #4 | 2024) as part 11 of the 100 Years LACH DIAMANT series.

First, the brilliant, the cut jewellery diamond until 1960. Natural diamonds were cut in LACH diamond shops in and around Hanau with 600 employees.

The industrial diamond from 1960 – 2000, was set in a holder and used for dressing conventional grinding wheels, and also served as a symbol for set polycrystalline diamond tools (PCD and PCBn) e.g.

Symbol for all high-performance tools/milling cutters/drills etc. PCD/PCBn, CVD, Mono from 1979 until today. After the fusion of LACH-SPEZIAL-WERKZEUGE GMBH with the LACH DIAMANT enterprise on January 1st, 2000, the entire portfolio of both companies was combined under this registered trademark.

Included were traditional industrial diamond tools, diamond dressing tools, profiling and forming tools, »Dia-Fliese-perfect«, multi-point dressers, precision diamond dressing rolls, diamond and CBN grinding tools, diamond pastes and »Diamant-Spray MF«, as well as the entire LACH DIAMANT machine programme for the eroding of diamond PCD tools for the machining of wood and plastic, manufacturing and service, among others with the »Dia-2200-mini« … a long list of products, incorporating pioneering advancements which are state of the art technology today.

The first steps in America

It must have been for this reason that I felt compelled to venture out into America, a country unknown to me (see part 10 of this article series). Frankly speaking, I never had the intention to conquer this huge country all by myself with this new technology “Diamond for all wooden materials”. Remember what was said during the first presentation of LACH-Diamant tools for wood processing during LIGNA 1979 in Hanover: “Lach must have gone crazy – he wants to process wood with diamonds.”

It was a blessing for the manufacturer of super-abrasives, General Electric in Columbus, Ohio.

Technology, in this case LACH, had shown GE a way to expand the production of polycrystalline diamonds (PCD) and therefore make it finally more profitable. So far, PCD turning tools only required ONE diamond – however, milling cutters needed many more, depending on the number of teeth. So, it might not be surprising that I took this step with confidence. GE wanted to sell more diamonds (PCD), and LACH had not only the expertise but also the matching tools.

In particular it was the diamond cutting tool (PCD) for the wood and plastic industry, superior to carbide, PLUS the know-how to manufacture these diamond-armoured tools. LACH DIAMANT’s key invention made this possible: spark/electrical erosion “EDGplus®” (EDG = Electrical Discharge Grinding Technology).

In short, LACH intended to bring this technology to the USA as well. After all we had the experience with such transfer of know-how (see part 9 of this article series, cues “Israel” and “Asahi, Japan”).

There were interested parties – according to GE – in the United States; we intended to visit them individually. In for a penny, in for a pound. So we designed an ad and placed it in The Wall Street Journal on July 15th, 1982:
“CUTTING TOOLS Revolutionary new technology”.

With the help of my assistant Rita Stein-Junkuhn we put together a travel route in order to visit approximately 100 interested companies who had answered to our ad.

My wife Margot accompanied me on this 4-to-5-week strenuous journey from the US West coast all the way to Boston in New England in the East. We met with the top decision makers in the management of all the companies we visited, ranging from conglomerates to medium-sized tool manufacturers.

Ad in The Wall Street Journal

Our presentations focused on our success and numbers since 1979 when diamond tools were first used in the wood and furniture industries in Germany, Italy, the Netherlands and Spain. Additionally we showed a selection of PCD tools, and wood and MDF/composite samples made with such tools.

First experiences

Even in hindsight, I must say that we could not have done it any better. My proposal focussed on licensing. Most reactions were something like “Sounds interesting, surely something for the future, maybe we can talk again in two years”, and I countered that “if you don’t participate in the market launch, how is the market supposed to develop in this direction?”

Apart from friendships which lasted for many years on a personal and business level, these answers showed that the American companies were not yet open to a successful project like ours at the time. By the way, during the later launch of the diamond tool in the USA, we encountered similar counter-arguments.

Since the diamond tool was at least ten times more expensive than traditional carbide tools, critics stated that the diamond tool would not fit into the existing “3-months budget”.  All arguments – that the diamond tool had a 300-350 times longer tool life – were ignored. Interestingly, this rejection came mostly from large scale industry companies; privately owned companies showed less resistance.

“All arguments – that the diamond tool had a 300-350 times longer tool life – were ignored.”

After evaluating our tour, GE also agreed that we had to find another way for America. Chance played into our hands. Mr. Theo Leon, born in Belgium, applied in Hanau after he had completed his job as interpreter and marketing staff member at a major machine manufacturer in Cincinnati. He worked out a new marketing plan which considered the American mentality, and aimed for exhibiting at the next US wood tradeshow in Louisville, Kentucky, so that we could better reach and convince potential licensees.

Up to the date of the Louisville show events moved at unprecedented speed. GE was of course in favour of this project – general manager Louis Kapernaros even suggested to generously support LACH. A few weeks before the event our employee Theo Leon succeeded in his search for Germanspeaking personnel for our tradeshow stand. That is how we met Karen Deutschler who had worked for an American bank in Frankfurt, and she and her husband now lived in the USA. We communicated frequently, and as a result, she was hired AND we founded LACH DIAMOND INC. as a Delaware corporation just a few days before the start of the Louisville show.

Founding document for Delaware Corporation

The decision was made. I would do the market launch myself; even major tool manufacturers in Germany had at that point no interest in expanding their carbide tool portfolio and adding “diamond”.

At the Louisville show, the tradeshow stand became an attraction. Probably also because our exhibited diamond tools were moved back and forth on an LGB model train track, under the watchful eyes of an armed sheriff.

LACH diamond tools at the first USA tradeshow in Louisville, well guarded by a sheriff
Our tradeshow team, relaxing after an eventful day; left to right: Theo Leon, Karen Deutschler, Dieter Claus (product manager LACH-SPEZIAL-WERKZEUGE GMBH), my wife Margot Lach and me

Appearance: the Viking

The good mood and motivation also carried over to our new friend, Mr. Matsui from the show in Los Angeles (see part 10 of this article series) who was also exhibiting with his company HEIAN at the Louisville show. The president of his company had commissioned him to negotiate a licensing contract with LACH. Our meeting took place in a nearby Japanese restaurant where the tables were separated in typical fashion, with sliding doors made of tissue paper.

In the midst of our lively and noisy discussion about the future of diamond, one of the sliding doors suddenly opened, without any advance warning. A stout, brawny Swede – much resembling a Viking – dashed to our table, “armed” with a piece of paper which he slammed on the table. “Carbide is always better than diamond” we read, and also noticed the terrified look in our Japanese friend’s wide-open eyes. The giant had slammed the sliding door and had disappeared without a word. Our lively, and so far promising, discussion ended abruptly, and – after a brief “retreat” meeting – we continued our talk on the edge of our bed in our hotel room.

In the evening, we had an appointment in Lancaster, in the (allegedly) second-longest American western bar. Gigantic. Above three bars on the sides of the room I discovered a ticker. I was briefly distracted, and all of a sudden, I read a new text:
“Diamonds are always better than carbide.” Who had done that? Deep breaths, okay, my wife … the evening and the day were saved.

By the way, the first large presentation at the tradeshow in Louisville was excellent, and LACH DIAMOND INC. had been founded and celebrated its anniversary together with LACH DIAMANT Germany in September of 2022 – LACH DIAMANT in Hanau 100 years, and LACH DIAMOND INC. 40 years.

Horst Lach

“From now on, only LACH DIAMOND tools for mass production” – words from our very first enthusiastic customer, Bob Mitchell of August Lotz Company