As the eldest son of
Bertha Krupp, Alfried was destined by family tradition to become the sole heir of the Krupp concern. An amateur photographer and Olympic sailor, he was an early supporter of Nazism among German industrialists, joining the SS in 1931, and never disavowing his allegiance to Hitler. According to Manchester, he kept a copy of
Mein Kampf on his bedside table to the day of his death. His father's health began to decline in 1939, and after a stroke in 1941, Alfried took over full control of the firm, continuing its role as main arms supplier to Germany at war. In 1943, Hitler decreed the
Lex Krupp, authorizing the transfer of all Bertha's shares to Alfried, giving him the name "Krupp" and dispossessing his siblings. During the war, Krupp was allowed to take over many industries in occupied nations, including Arthur Krupp steel works in
Berndorf, Austria, the Alsacian Corporation for Mechanical Construction (Elsaessische Maschinenfabrik AG, or ELMAG), Robert Rothschild's tractor factory in France,
Škoda Works in Czechoslovakia, and Deutsche Schiff- und Maschinenbau AG (
Deschimag) in
Bremen. This activity became the basis for the charge of "plunder" at the war crimes trial of Krupp executives after the war. As another
war crime, Krupp used slave labor, both POWs and civilians from occupied countries, and Krupp representatives were sent to concentration camps to select laborers. , 1945 After the war, the Ruhr became part of the
British Zone of occupation. The British dismantled Krupp's factories, sending machinery all over Europe as
war reparations. The Russians seized Krupp's Grusonwerk in Magdeburg, including the formula for
tungsten steel.
Germaniawerft in Kiel was dismantled, and Krupp's role as an arms manufacturer came to an end.
Allied High Commission Law 27, in 1950, mandated the
decartelization of German industry. construction at the Krupp Works, Essen, 1960 Meanwhile, Alfried was held in
Landsberg prison, where Hitler had been imprisoned in 1924. At the
Krupp Trial, held in 1947–1948 in Nuremberg following the main
Nuremberg trials, Alfried and most of his co-defendants were convicted of crimes against humanity (plunder and slave labor), while being acquitted of crimes against peace, and conspiracy. Alfried was condemned to 12 years in prison and the "forfeiture of all [his] property both real and personal," making him a pauper. Two years later, on 31 January 1951,
John J. McCloy, High Commissioner of the American zone of occupation, issued an amnesty to the Krupp defendants. Much of Alfried's industrial empire was restored, but he was forced to transfer some of his fortune to his siblings, and he renounced arms manufacturing. By this time,
West Germany's had begun, and the
Korean War had shifted the United States's priority from
denazification to
anti-Communism. German industry was seen as integral to
western Europe's economic recovery, the limit on steel production was lifted, and the reputation of Hitler-era firms and industrialists was rehabilitated. In 1953 Krupp negotiated the Mehlem agreement with the governments of the US, Great Britain and France. Hitler's
Lex Krupp was upheld, reestablishing Alfried as sole proprietor, but Krupp mining and steel businesses were sequestered and pledged to be divested by 1959. There is scant evidence that Alfried intended to fulfill his side of the bargain, and he continued to receive royalties from the sequestered industries. the President of
Togo, while visiting
Villa Hügel on 17 May 1961 Despite having only 16,000 employees and 16,000 pensioners, Alfried refused to cut pensions. He ended unprofitable businesses including shipbuilding, railway tyres, and farm equipment. He hired
Berthold Beitz, an insurance executive, as the face of the company, and began a public relations campaign to promote Krupp worldwide, omitting references to Nazism or arms manufacturing. Beginning with
Adenauer, he established personal diplomacy with heads of state, making both open and secret deals to sell equipment and engineering expertise. Expansion was significant in the
former colonies of Great Britain and behind the
Iron Curtain, in countries eager to industrialize but suspicious of
NATO. Krupp built rolling mills in Mexico, paper mills in Egypt, foundries in Iran, refineries in Greece, a vegetable oil processing plant in Sudan, and its own steel plant in Brazil. In India, Krupp rebuilt
Rourkela in
Odisha as company town similar to his own Essen. In West Germany, Krupp made jet fighters in Bremen, as a joint venture with
United Aircraft, and built an
atomic reactor in Jülich, partly funded by the government. The company expanded to 125,000 employees worldwide, and in 1959 Krupp was the fourth largest in Europe (after
Royal Dutch,
Unilever, and
Mannesmann), and the 12th largest in the world. 1959 was also Krupp's deadline to sell his sequestered industries, but he was supported by other Ruhr industrialists, who refused to place bids. Krupp not only took back control of those companies in 1960, he used a shell company in Sweden to buy the , in his opinion the best remaining steel manufacturer in West Germany. The
Common Market allowed these moves, effectively ending the Allied policy of
decartelization. Alfried was the richest man in Europe, and among the world's handful of billionaires. The treatment of Jews during the war had remained an issue. In 1951, Adenauer acknowledged that "unspeakable crimes were perpetrated in the name of the German people, which impose upon them the obligation to make moral and material amends." Negotiations with the
Claims Conference resulted in the
Reparations Agreement between Israel and West Germany.
IG Farben,
Siemens, Krupp,
AEG,
Telefunken, and
Rheinmetall separately provided compensation to Jewish slave laborers, but Alfried refused to consider compensation to non-Jewish slave laborers. In the mid-1960s, a series of blows ended the special status of Krupp. A recession in 1966 exposed the company's overextended credit and turned Alfried's cherished mining and steel companies into loss-leaders. In 1967, the
West German Federal Tax Court ended sales tax exemptions for private companies, of which Krupp was the largest, and voided the Hitler-era exemption of the company from inheritance tax. Alfried's only son,
Arndt von Bohlen und Halbach (1938–1986), would not develop an interest in the family business and was willing to renounce his inheritance. Alfried arranged for the firm to be reorganized as a
corporation and a
foundation for scientific research, with a generous pension for Arndt. Although Arndt was homosexual, like his great-grandfather Friedrich (Fritz) Krupp, he married but was childless. He was an alcoholic and died of cancer in 1986, aged 48, 399 years after Arndt Krupp arrived in Essen. Alfried had married twice, both ending in divorce, and by family tradition he had excluded his siblings from company management. He died in Essen in 1967, and the company's transformation was completed the next year, capitalized at 500 million DM, with Beitz in charge of the
Alfried Krupp von Bohlen und Halbach Foundation and chairman of the corporation's board until 1989. Between 1968 and 1990 the foundation awarded grants totaling around 360 million DM. In 1969, the coal mines were transferred to
Ruhrkohle AG. Stahlwerke Südwestfalen was bought for stainless steel, and
Polysius AG and Heinrich Koppers for engineering and the construction of industrial plants. ==Family tree==