In 1933 Luftfahrtkommissariat asked Hanns Klemm to move to central Germany. Compromise solution was that Klemm stayed at Böblingen but opened subsidiary called Klemm Flugzeugbau Halle/Saale GmbH at Halle. Flugzeugbau Halle received major production contracts and also developed Klemm Kl 104 into Fh 104 light transport. As soon as possible (late 1936) Klemm handed over to majority shareholder Fritz Siebel, who renamed factory after himself.