At the end of the 19th century, the development and production of the Ganz and Partner Iron Mill and Machine Factory (hereinafter referred to as Ganz Works) had tremendous expansion of alternating-current energy transfer.
The company's general manager recognizing significance of electronic engineering András Mechwart (1853-1942) founded the Department of Electronic Engineering headed by Károly Zipernowsky (1860-1939). Engineers Miksa Déri (1854-1938) and Ottó Títusz Bláthy (1860-1939) also worked at the department producing direct-current machines and arc lamps.
In cooperation, Zipernovsky, Déri and Bláthy constructed and patented the transformer (see Picture 2). It is noteworthy, that the name "transformer" was created by Ottó Titusz Bláthy.
Besides gear ratio based on ratio of number of turns, in the patents of transformer (protected by two patents) the inventors generated two basic principles: they demanded the parallel connection of consumers and feeds on primary and secondary sides of the transformer that was not used generally until 1885. Additionally, they described the closed armature as essential constructional part of the transformer. Both factors assisted the stabilization of tension and introduction of standard voltage. Emphasizing the necessity of parallel connection made construction of energy systems possible and their economic investments.
It is noteworthy that the Ganz Works built the first transformers using iron cover of enameled mild iron wire, and started to use laminated core of today at the end of 1885.
Following introduction of transformer, the Ganz Works changed over to production of alternating-current equipments successfully. (For instance, Rome's electric supply was resolved by hydroelectric plant and energy transfer of long distance.)
Besides invention of transformer, three engineers had significant inventions, and made a lot for electronic engineering during their lives. Here we mention the major inventions. Károly Zipernowsky participated in construction of 60 power stations; he acted as the first professor of electric engineering of the Budapest University of Technology, and Economics (hereinafter referred to as BMGE).
Miksa Déri developed the repulsion motor for elevators of buildings with alternating current. He also participated in construction of Vienna's electric supply.
Whole his life, Ottó Titusz Bláthy worked at the Ganz Works. His basic job was the construction and patenting of induction flow meter of 1889 used today. (See Picture 3.) In the 1930s, he initiated the Hungarian production of turbogenerator known worldwide.
Invention of Serbian Nikola Tesla, the short circuit rotary-field motor (induction motor) had significant importance in the filed of alternating current. He patented it in the USA (1888), and he remembered that his idea had born during his activity in Budapest (1881-82).