MG was founded in Frankfurt, Germany, in 1881. Its early business involved metal trading at the time when Western Europe was going through the Second Industrial Revolution. Because Germany’s domestic production was not able to keep up with demand, MG quickly turned to overseas markets to secure its metal supply. MG first started its U.S. operation when it founded the American Metal Company in New York as a subsidiary in 1887. Metallgesellschaft refining obtained a 49% stake in a company called Castle Energy in the US. This was the start of changing Metallgesellschaft into a proper refiner. Through this deal Metallgesellschaft was able to to secure long term output of refined products at long-term contracts.