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The company was founded in 1898 by commercial councillor Anton Schlüter to build petrol and multi-fuel engines. Twelve years later, Schlüter acquired the Otto Schülein machine factory in Freising and converted it into a foundry. The following year, Schlüter built an agricultural engineering test centre outside Freising, the Schlütergut, which is now used by the Weihenstephan dairy. During the First World War, a third factory was built by the architects Jakob Heilmann and Max Littmann. This was built in the south of Freising near the Schlütergut.