The company began life as the Flugzeugbau Friedrichshafen GmbH, a manufacturer of important floatplanes such as the FF 49c which saw widespread service during the First World War. In November 1920 its disused factory buildings at Warnemünde on the Baltic coast were bought by the German industrialist Hugo Stinnes, who used them to produce furniture, ice yachts and sailing boats. One of the latter, produced by the company for the South American market, was plough-like in shape. The Spanish word for plough is 'arado', thus the success of the boat prompted Stinnes to change the name of the company to the Arado Handelsgesellschaft mbH in 1925. The name was to seem doubly appropriate about a year later when the company engaged the services of a talented aircraft designer, Walter Rethel, and began building aeroplanes under licence. The German word for plough is 'pflug'- phonetically similar to that for flight, 'flug'.
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