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There are three main reasons for the investment in ships: the Carlshütte is located far away from its sources of raw materials, and partly also from the areas where its products were sold. A major advantage, however, is its location on the Upper Eider, with access to the Kiel Canal. It also had a history of shipbuilding. A factory-owned shipyard was built on the Eider in 1847, and it had traditionally maintained a number of ships bearing the name "Carlshütte" with consecutive numbers. After the Second World War, the German merchant fleet was destroyed, and was to be rapidly rebuilt by German companies. The creation of new shipping capacities was therefore fiscally subsidised.