The German attack on Norway on 9 April 1940 tore apart the ties between the parent company in Canada and the subsidiary in Kristiansand. The mine and the smelter were safely located on the American side of the Atlantic, while the refinery was in German-occupied territory.

Wartime often places severe strain on international enterprise. Plants and property get damaged, sequestrated or used for war-related purposes. Foreign-owned enterprises are perhaps especially vulnerable. This chapter examines how Falconbridge and its Norwegian subsidiary developed during the Second World War. How did the German occupying powers treat the allied-owned company and how did the refinery in Kristiansand fit in with their plans? What strategies did the plant management follow? These types of questions have so far received limited attention in business history research. At the end of the chapter, we will sum up the war's effects on the subsidiary and on its relations to the Canadian mother company.

Falconbridge at War

When the Second World War broke out in September 1939 the British and the Canadian Government made an all-out effort to prevent the enemy from gaining access to raw materials and products. As a Canadian company of military significance, Falconbridge and its Norwegian subsidiary were naturally part of the economic warfare against Hitler's Germany. However, the grim realities of war soon became clear. The first vessel laden with matte was torpedoed in late September. The connection between Canada and Norway had now become the company's weakest link.