Bernd
07/18/2019 (Thu) 02:31:27
No.28069
del
In chemistry, IG Farben stood out. Hydrocarbons are versatile and the company was the key to sourcing more and more things out of Germany’s plentiful coal. It and its predecessors had a long-term plan in the field of coal to fuel conversion: since the 20s it used profits from explosives, fertilizer and other sectors to fund research into coal hydrogenation, betting on a future shortage of oil. The gamble failed when new fields were found in Venezuela and the USA, bringing fuel prices far below the expensive price of any advanced synthetic alternative. With all its other businesses IG Farben would have prospered under any regime, but the Nazi autarky drive gave it a way to save this specific investment in coal hydrogenation. They reached a deal: with funding from the coal industry, IG Farben would expand its Leuna plant (working since 1928) and the Reich would tax imported oil, guarantee a 5% profit and keep any further profit. 5% seemed great when the technology was a gamble, but with Germany’s oil shortage production turned out great shortages and IG Farben regretted it. Leuna only produced 350,000 tons per anuum; more plants were built and synthetic fuel came to play an important role.
In the Four Year Plan it also led the production of synthetic rubber (Buna), a more recent technology that was still experimental by the mid 30s.
Overall Nazi rule was just a new reality German industry had to live with and it had several displeasures to quietly tolerate. But it adapted to the situation and found ways to gain handily from it.