The company was founded in spring 1974 by Lothar Herrmann, Gotthold Schur and Karl-Heinz Wenzelburger as a joint partnership. Based in Riederich near Stuttgart, the company started out with six employees, producing and developing single-fluted gun drills with brazed drivers. It was transformed into a limited company with its present name in 1976.
The results achieved by single-fluted gun drills, especially in series production meant that the usual finishing via counterboring or reaming was no longer necessary. No other tool of the day was capable of producing bores of comparable quality in a single pass. This was a crucial leading edge in times of rocketing industrial demand for high-precision deep-hole drilling.