The state-owned enterprise (VEB) was a legal form of industrial and service enterprises in the Soviet zone of occupation and later in the GDR. Their creation, modeled on similar establishments in the Soviet Union, was a result of the Soviet occupation carried out after the end of World War II process of expropriation and nationalization of private enterprise. From 1948, they were the economic base units of the centrally planned economy. Formal, legal point they were in public ownership and subject to the GDR state and party leadership. Your sales to private individuals was forbidden.
At the top of each VEB was ( later work or operations director called ) a single executive plant manager. He was assisted by the First Secretary of the SED party operating organization (BPO ) and the chairman of the company union line ( BGL). Reports to the plant manager were several technical directors (Technical Director, Production Director, Economic Director, Chief Accountant, etc.). The term " VEB (K )", which can be found sporadically, meaning " circular headed ".
VEB were summarized first industry- related associations in state-owned enterprises ( VVB ). From the late 1960s, this VVB were gradually transformed into conglomerates. VVB and combines in turn were the responsibility and planning in the State Planning Commission ( SPC), subject to the industrial ministries and their headquarters. 1989 were employed in a VEB 79.9 percent of all employees of the GDR.
The actual operating name was often still an honorary name added, for example, the VEB Chemische Werke " Walter Ulbricht " Leuna, which had to be " won " by the working people in the context of socialist competition of plan fulfillment and over - fulfillment before.
The VEB often played an important role in the promotion of sport as a carrier operations.
With German reunification and the introduction of the market economy from around 1990, the 8000 combines and VEB were privatized by the Treuhand. The pension funds have created an internal database, from which the successor companies are seen.