After 1933, exports fell dramatically. In order to find new sales channels, the company, which so far had focused exclusively on circular loom products, expanded its production into the areas of chain, milanese and simplex knitting and interlock fabrics. By 1934, these new products already accounted for 40% of the turnover.

The Paul Uebel company has always been a producer of yard goods. The textiles from the circular loom were employed in the footwear and glove industry, and were also used to make clothing such as tracksuits, dressing gowns, leggings and quilts. Gradually, chain fabrics came to replace circular-loom fabrics in the quilt industry, while the latter continued to be used in undergarments and overgarments, and also in the toy industry.

In 1938, Paul Uebel retired from his managing post and his nephew Johannes Uebel entered the company. However, due to the war, he was not able to helm the company until 1946.

The following years were characterized by the privately owned company's struggle to survive against the politics of the state. The final acceptance of a state participatory share, followed by nationalization in 1972, become unavoidable in order to ensure the continued existence of the Paul Uebel company.

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