Reichswerke Hermann Göring

Reichswerke Hermann Göring

Company type	Government-owned corporation
Industry	Mining, steel production, military manufacturing
Founded	1937
Founder	Hermann Göring (initiator)
Defunct	1945
Fate	Dismantled by Allied forces; Salzgitter plant continued until 1953
Headquarters	Salzgitter , Nazi Germany
Area served	Germany, Austria, Czechoslovakia, Poland, Vichy France, Soviet Union, Romania, Latvia, Ukraine
Key people	Hermann Göring (oversight), Paul Pleiger (managing director)
Products	Iron ore mining, steel production, arms and ammunition manufacturing
Number of employees	Nearly 500,000 (by late 1941)

Reichswerke Hermann Göring ("Hermann Göring Reich Works") was a government-owned industrial conglomerate operating in Nazi Germany from 1937 until 1945. Established to exploit domestic iron ore deposits near Salzgitter that private steel companies considered unprofitable, it aligned with Adolf Hitler's economic strategy to boost mining and steel production rapidly, circumventing private sector interests. In November 1937, Hermann Göring, then Reich Minister of Aviation, secured unlimited state funding, initiating mergers and expanding into military manufacturing, including the takeover of Rheinmetall. Although Göring oversaw the Reichswerke, he neither owned it nor gained personal profits regularly, aside from occasional withdrawals for his own use.

After the Anschluss, Reichswerke incorporated Austrian heavy industry assets, particularly the steel plants in Linz, which became vital holdings. The Nazi regime treated these acquired industries as state property, excluding German private enterprises from ownership. Following the occupation of Czechoslovakia, Reichswerke controlled between 50 and 60 percent of Czech heavy industry. This pattern of expansion continued into occupied Poland, Vichy France, and the Soviet Union, extending operations as far as Liepāja in Latvia and Donetsk in Ukraine. By the time World War II was underway, Reichswerke provided roughly one-eighth of Germany’s steel production and had established a Nazi-controlled military-industrial complex independent of private capital. By late 1941, it ranked as Europe’s largest company—and likely the world’s—with capital totaling and a workforce nearing half a million.

In 1942, efforts to improve efficiency led to restructuring; Reichswerke’s arms and munitions divisions were transferred to the Ministry of Armaments under Albert Speer, while mining and steel activities remained under Göring’s control until the war concluded, albeit operating at a loss. Between 1944 and 1945, Allied forces dismantled the conglomerate; however, the Salzgitter plant continued using the Reichswerke name until 1953. The company’s emblem, resembling Göring’s coat of arms, was retained by Peine+Salzgitter until the mid-1980s.

Salzgitter

During 1935–1936, Germany’s steel sector—primarily concentrated in the Ruhr region—recovered from the Great Depression and approached full production capacity. This industry was dominated by private firms such as Vereinigte Stahlwerke (VS), Krupp, Gutehoffnungshütte, and Mannesmann. Approximately three-quarters of processed iron ore was imported since domestic ore deposits around Salzgitter were deemed too low-grade for profitable use. Growing military expenditures increased demand further and intensified reliance on imports. Influential Nazi figures including Hitler’s economic advisor Wilhelm Keppler advocated expanding domestic iron ore extraction.

Securing iron ore supplies became a central objective of the Four Year Plan (1936–1940). In October 1936, Göring discovered that Stewarts & Lloyds in Britain had successfully processed low-quality ores, removing a key technical obstacle to his plans. By December that year, Göring declared domestic ore mining and steel production a national priority despite opposition from private owners. Private capital resisted rapid expansion; consequently, Göring pursued state control over ore mining operations.

Throughout early 1937, Göring promoted steel industry self-sufficiency and confronted established steel magnates. His position strengthened his political standing and suppressed dissent. The Nazi press fully endorsed aligning economic policy with Hitler’s strategic objectives. Risks associated with dependence on imports were underscored by labor strikes and anti-Nazi sentiment in Sweden as well as the rise of the Popular Front in France. In July 1937, the Reichswerke—a state-owned integrated enterprise designed to exceed Ruhr steel output—was formed. Steel industry leaders feared overcapacity and increased competition; they allied with Reich Minister of Economics Hjalmar Schacht who blocked state financing for Göring’s initiative.

On 23 July 1937, Göring announced that Reichswerke would mine and process Salzgitter iron ores while the government would acquire private ore deposits in exchange for minority shares in the company. Paul Pleiger was appointed managing director. Critics predicted that Salzgitter would consume more steel than it produced within three years. The Ruhr firms attempted coordinated opposition; however, wiretaps provided Göring with advance knowledge enabling him to preempt resistance through threats and incentives. While avoiding direct confrontation with the regime, trust between Nazi leadership and major industrialists was permanently damaged. Schacht resigned in November 1937, ceding his position to Göring.

Workforce

The Salzgitter initiative drew laborers from Germany, Austria, Italy, the Netherlands, and several other nations. Its inaugural production of pig iron occurred in October 1939, followed by the first steel output in August 1940. Adjacent to this, the substantial metalworking facility Stahlwerke Braunschweig began construction in March 1940 and eventually employed around 10,000 individuals. Among the 47,000 workers in the Salzgitter region, non-German personnel constituted the majority. Between 1937 and 1942, the local population increased by a factor of five. Due to housing shortages, many foreign laborers were accommodated in approximately seventy improvised camps.

An on-site concentration camp managed by the Gestapo detained workers labeled as "delinquent." Starting in May 1944, forced laborers from Nazi concentration camps were utilized; three camps providing labor to Salzgitter housed up to 6,500 detainees. The Drutte camp supplied forced workers for Reichswerke’s ammunition manufacturing beginning in 1942. Despite multiple Allied bombing raids, damage to the facility remained limited, allowing blast furnaces to operate until American forces captured the site in April 1945.

Expansion

Following Schacht’s dismissal in November 1937, Reichswerke experienced rapid growth while Ruhr steel plants faced capital shortages, maintaining a production capacity of 16 million tons per year until the outbreak of World War II. In February 1938, Göring boosted Reichswerke’s capital investment significantly, initiating a series of mergers. By April, Reichswerke had entered the armaments sector through its acquisition of Rheinmetall, extending its influence over Dutch subsidiaries and their economies. Over the following months, Reichswerke consolidated control over most Austrian heavy industries, encompassing everything from ore mining to weapons manufacturing.

After the March 1938 Anschluss, Göring secured almost unrestricted access to Austrian resources. Reichswerke treated these newly acquired assets as state property, absorbing Austrian industries formerly owned by German investors and marginalizing Ruhr industrialists. A key acquisition was , predominantly owned by German company VS; regulatory actions reduced Alpine’s value, prompting VS to relinquish control in March 1939. Alpine’s ore was crucial for Göring’s vertically integrated steel complex centered in Linz, which included Eisenwerke Oberdonau and related enterprises. Additionally, Göring connected Reichswerke with oil and aviation sectors through his roles as Prussia’s President and Luftwaffe Chief.

Relations between state steel leaders deteriorated as Göring employed coercion to seize Austrian and Czech holdings. Reichswerke took over 50–60% of Czech heavy industry and a large portion of Austrian assets via stock acquisitions, proxy control through local banks, or outright confiscations—such as the British-owned Rothschild mill at Vitkovice. The annexation of Sudetenland in 1938 added significant coal reserves to Reichswerke’s portfolio. Within Germany, Reichswerke pressured Ruhr industrialists into supplying coal below market rates for Salzgitter blast furnaces commissioned in 1939; further acquisitions of Polish coal mines contributed to reducing costs.

Once hostilities commenced, Reichswerke abandoned formal procedures and outright seized valuable "German" assets in occupied regions, positioning itself as a state-appointed "trustee" safeguarding these countries from corporate exploitation. Financial settlements were postponed until after the war. Plans devised in 1942 aimed for greater state dominance over heavy industry and focused on industrializing eastern territories at Ruhr’s expense. By 1943–44, half of Reichswerke’s iron and steel production originated from occupied lands; the remainder came from Germany including annexed Austria.

The Soviet coal and steel industries captured during 1941–42 presented a significant challenge; Hitler assigned Reichswerke with their swift exploitation. Pleiger compelled Ruhr steel executives to send management teams to supervise Soviet operations despite resistance.

Romanian assets—comprising nearly all coal and steel production—were acquired through cooperative agreements under joint German-Romanian administration. Particular emphasis was placed on the Galați shipyard: its capital increased elevenfold in 1942 following technical support from Reichswerke. That year saw completion of Romanian Navy submarines Marsuinul and Rechinul, launch of Romania’s first domestically built tanker SRT-128, and construction of four modified M-class minesweepers using German materials. Between 1942 and 1943, the shipyard assembled six Type II coastal U-boats and contributed to S-boat production benefiting the Kriegsmarine.

Restructuring

By the end of 1941, Reichswerke had become the largest corporation in Europe. In January 1941, its holdings were divided into three main sectors: with particularly poor outcomes in its French divisions.

Liquidation

Territorial acquisitions secured by conquest were reclaimed by Allied forces between 1943 and 1945, including assets belonging to ARBED (Luxembourg) and Skoda Works.

In Austria under Allied occupation, Reichswerke’s properties were nationalized following the First Nationalization Law enacted in July 1946. Ore mines at Erzberg and steel production facilities in Linz—both damaged by aerial bombardments—were restructured into the publicly owned VÖEST (now part of Voestalpine). The reconstruction process was prioritized by the Marshall Plan. While the US Department of State favored nationalization efforts, US military commanders advocated for privatization. Steyr-Daimler-Puch served as a pilot project for private-sector modernization under US Army oversight. Ultimately, nationalization dominated; assets located within the Soviet-controlled zone were administered by the Administration for Soviet Property in Austria until their restitution in 1955.

Starting in 1947, the Salzgitter blast furnaces were shut down and subjected to dismantling efforts that severely affected the regional economy. The town absorbed approximately 44,000 German refugees displaced from eastern territories, leading to unemployment rates surpassing 30%. Concerned about potential communist agitation, British authorities contemplated relocating residents. Many workers resisted relocation orders; deportations persisted into the mid-1950s. In February 1950, a nonviolent confrontation occurred when workers successfully prevented British forces from demolishing plant facilities. Although dismantling continued for an additional year, steel production at Salzgitter was ultimately maintained. The state-run facility operated under the Reichswerke designation until 1953 before transitioning to AG für Bergbau- und Hüttenbetrieb and later evolving into Salzgitter AG. The original Reichswerke emblem remained in use until it was replaced during the 1980s.

References

• Neumann, Klaus (2000). Shifting memories: the Nazi past in the new Germany. University of Michigan Press. .
• Robert Gellately (2020). Hitler's True Believers. Oxford University Press. .
• Overy, R. J. (1995). War and economy in the Third Reich. Oxford University Press. .
• Tweraser, Kurt (2000). The Marshall Plan and the Reconstruction of the Austrian Steel Industry 1945-1953. In: Bischof, Gunther et al. (2000). The Marshall Plan in Austria. Transaction Publishers. . pp. 290–322.

Further reading

• Wysocki, Gerd (1982, German language). Zwangsarbeit im Stahlkonzern: Salzgitter und die Reichswerke "Hermann Göring," 1937-1945. Magni-Buchladen. . Neumann provides an analysis of this work’s historical importance on pages 31–32.