After experiencing healthy development thanks to the grinding wheel division, the decision is made to establish a new company which can be devoted entirely to the manufacture of ceramic grinding wheels. The founding document is signed on 20 April 1920, however, an entire section of the Franz Ant. Mehlem factory is outsourced and relocated to the other side of the Rhine in Bonn Beuel.

The newly founded grinding wheel company is henceforth known as "Guilleaume-Werk  –  Dr. O. Goertz und W. Guilleaume".The original production plant of Franz Anton Mehlem is sold to Villeroy & Boch on 1 June 1920 and develops well initially. With the onset of the global economic crisis, the demand for pottery and porcelain from the factory decreases significantly and the factory does not see the end of the economic crisis in 1929.