| I.G. Farbenindustrie A.G. was a dominant force in the world chemical industry from its foundation in 1925 through the Second World War. At war's end, Farben, like Germany itself, lay prostrate. Its prospects appeared bleak indeed. Damage to physical plant was severe. Loss of foreign holdings and patents, export difficulties, and inadequate investment capital called into question the future viability of I.G. plants. Allied policy exacerbated the situation. Alarmed and outraged by the notorious complicity of the I.G. in the worst practices of the Nazi regime, U.S., British, and French occupation authorities fired numerous high-ranking executives, restricted research, threatened extensive dismantling of factories, and promised to "disentangle" (i.e. break up) the firm. Nevertheless, the I.G.'s major successors--Bayer, BASF, and Hoechst--functioned as pacesetters for the German Wirtschaftswunder after their refounding in late 1951/early 1952. During the 1950s, they expanded production rapidly, moved into new production areas, and reconquered former markets. In the process, they themselves became significant forces in the world chemical industry.;This study of the resurgence of West German chemical firms to world competitiveness draws upon the holdings of private and public archives in the U.S., France, Britain, and West Germany. It shows that French policy toward the I.G. factories in their zone was not as different as has been presumed from that of the other western zones. What is more, the long-term impact of Allied policy is questionable: patterns of firm tradition, continuities in company leadership, and other factors gradually grew in importance in the recovery and resurgence of the industry. In addition, evidence suggests that the I.G. itself never fully integrated; the successors made good use of this fact. Finally, although the role of U.S. aid in the recovery and resurgence of the industry should not be underestimated, it should not obscure the significance of internal financing, repair of existing equipment, and utilization of generous tax write-offs in explaining the postwar performance of the successor firms. |
