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In 1938, Carlshütte pushed ahead with the use of substitute raw materials. Terrazzo – a mixture of colour-selected aggregates, water, lime and cement – was used as cast terrazzo for the Carlshütte washing fountains, which were previously made of cast iron. For the ovens, fireclay walls were installed in place of the cast-iron walls to save iron. Further savings were achieved by using ceramic ash boxes. New to the Carlshütte range were concrete boiler stoves, which were delivered from March 1938. With the compulsory use of the new materials, which were not characteristic of an iron foundry, a concrete division was set up at the Carlshütte, from which the Severin Ahlmann-Betonindustrie (SAB), later ACO Severin Ahlmann, was established.