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To reach European customers who wanted Steinway pianos, and to avoid high European import taxes, William Steinway and C. F. Theodore Steinway established a new piano factory in the free German city of Hamburg in 1880. The first address of Steinway's factory in Hamburg was at Schanzenstraße in the western part of Hamburg, St. Pauli. C. F. Theodore Steinway became the head of the German factory, and William Steinway went back to the factory in Queens. The Hamburg and Queens factories regularly exchanged experience about their patents and technique despite the large distance between them, and they continue to do so today. C. F. Theodore Steinway was a talented inventor who made many improvements in the construction of the piano. About a third of Steinway's patented inventions are under the name of C. F. Theodore Steinway. The Steinway factory in Hamburg was part laboratory, part factory. Much of the precision cutting and drilling machinery installed in the Queens factory was tried in the Hamburg factory first. C. F. Theodore Steinway died in Braunschweig in 1889, having successfully competed against the Grotrian-Steinweg brand – both the Hamburg-based Steinway factory and the Braunschweig-based Grotrian-Steinweg factory became known for making premium German pianos.