In 1920, Albert Rabe founded a knitwear manufacturing business in his own home. Production began with just two hand-knitting machines and a winding wheel. As early as 1922, the first purpose-built factory building was constructed next to the family home. By employing numerous local workers, the company was able to steadily expand production. The aim of bringing as many workers as possible together under one roof led to the addition of another storey to the building in 1923, along with the construction of a connecting passage to the residential house.
In 1929, the factory complex underwent its third phase of expansion, with another single-storey building erected at the rear of the site. By this time, the knitwear factory already employed 173 people. Albert Rabe was regarded as a well-liked employer who was particularly committed to supporting poorer members of the community and the elderly. In 1938, the second extension was enlarged by adding another storey, creating a spacious and impressive dining hall. The factory canteen was managed by Albert Rabe’s wife, Liddy Rabe. By mid-1939, the knitwear factory employed around 200 people.
In June 1950, Albert Rabe and his wife Liddy left the German Democratic Republic (GDR). On 1 January 1953, the Albert Rabe knitwear factory was nationalised and converted into a state-owned enterprise (Volkseigener Betrieb, or VEB). Production continued under the name “‘VEB Strickwarenfabrik Aktivist, Werk 3”.
Following the political changes of 1989, the company was renamed “Mikado Strickwarenfabrik GmbH St. Egidien”. In 1990, it was renamed Textilmoden St. Egidien GmbH. A new managing director took over the company on 14 August 1992. The relocation of production operations abroad, followed by the closure of the knitting department in July 1998, resulted in substantial job losses. Only 15 employees remained. On 19 February 1999, the garment manufacturing department was closed, and the final shutdown of the company on 28 February 1999 brought the history of this long-established knitwear factory to an end.