KRUPPS SWITCHING TO PEACEFUL PRODUCTION

Grey River Argus, 28 October 1948, Page 4

KRUPPS SWITCHING TO PEACEFUL PRODUCTION

(By Guy Bettany, Reuters Correspondent).

ESSEN British Zone GERMANY—By Airmail. The future of the huge Krupp works which, in 1938, employed 50,000 workmen, hangs in the balance and witn it the livelihood of the town of Essen containing nearly 600,000 inhabitants. The recent decisions of the Ameiican War Crimes Tribual in Nuremberg, which passed heavy sentences on several former directors of Krupps are likely to have some influence upon the future of the ' v o r r ks A „ The Workers Council of K IU PP S has, therefore, sent a tel^ m r^_ t r h „ e 1 American Military Governor, General Lucius Clay, expressing their anxiety over the future and expressing their ?iew that the works should be handed over to the German State and used, in future, for peaceful productloThe .Essen Town Council expects that a new Krupp organisation will be established for perceful Production and has worked out an elaborate P1 E n ntire quarters of the town of Essen are occupied by Krupps works. The main part of the works now m operation is the locomotive section, employing over 4000 workers and engaged in the repair of locomotives, urffig the last few months, ocomotives have been repaired at the rate of one and a half a day and it is hoped shortly to begin the construction of new locomotives, which are badly needed by the German RailW Tliis part of Krupps is not to be dismantaled! nor are the factories; producing the so-called Wildia Steel, a trade une signifying ‘as hard as dl Siiiilai’iy, the Wipla steel plantFipla being a trade name meaning 'like platinum’— is being retained. Its are needed by German dentists, for, although Krupps have geenrally been associated with armaments, they have, for many years, produced harmless articles such as false teeth. . , The plants producing spare parts for motor vehicles have likewise not been included in the dismantling list as well as several minor branches of Krupps works. The most important part of Krupps already dismantaled is the steel works at Essen-Borbeck, one of the most modern plants in the world for the production and working of fine steels with a former monthly output of 25 000 tons of raw iron, 45,000 tons of’ Seimens Martin and electrolytic steel and 20,00 tons of rolled steel.. Almost all the machines and equipment, including the blast furnaces, have been taken down and have already been handed over to Russia. Of the remaining Krupp plants, almost all of the works for the production and working of steel will be dismantaled, as well as the engineering shops and the works fomerly engaged in making agricultural machinery. The Krupp management states that 900 pieces of equipment 01. a lota! weight of 8,700 tons have already been dismantaled as well as 82 heavy machines . weighing .1100 tons. „ . . Over 200 larger pices of equipment which could only be used for the production of armaments, have been blown up by the British authorities. While the population of Essen has been anxiously watching the progress of dismantling and destruction of specialised plants at Krupps there is no popular opposition to the removal of Krupps war potential. There is, however, a concern lest plants and shops which could be used for peaceful Gorman industry should share the same fate. reatly interested in the future of the Krupp concern are the 15,0011 pensioners of Krupps, who tear that any radical change in the organisation might affect their livelihood. The Krupp family were in many respects model employers, and for generations past, have provided admirable housing estates for their workers, with all the most modern amenities, while their pension schemes for the old and disabled were exemplary. For these reasons, the Krupp family, and especially the former head of the firm Herr Alfred von Bohlen and Halbach, who was recently sentenced to. 12 years' imprisonment by an American War Crimes Court, in Nuremberg, were regarded with great respect by the majority of the workers. Despite its immense size, Krupps was run as a family concern, consequently, when the Nuremberg sentences became known, such a wave of resentment swept through the town that the British authorities took special security measures, The excitement passed off, however, without anv incidents. The present salary and wage list amount to 4,500,000 German marks a month. It is an open question whether it wil be possible to continue for long paying this entormous total of salaries, wages and pensions out of the relatively trifling present production. The mainstay of the Krupps has always been its immense production of cast steel, the equipment for this purpose being the largest in Europe. The fact that cast steel is no longer being produced, is having considerable effect upon the lianances of the concern.

With the enforcement of the C irrency Reform, too, the large financial reserves of the Krupps were reduced to one tenth of their former value, and it is, therefore, feared that manyworkers and pensioners will become charges upon the public purse. The Essen City Council and Krupps management are convinced that there are enough potential orders to keep what remains of the immense Krupp concern busy for many years, manufacturing raw materials and finished goods badly needed not only for the reconstruction of Germany herself but also for the restoration of Western Europe. The Allied authorities may fall in with these schemes from which there may arise a new Krupps of far-reaching value to . humanity as a whole.