It came as a result of the Treaty of Versailles after World War I that forced the German defense industry to shrink.

The company was owned by the government of the Weimar Republic and its headquarters was in Berlin while the manufacturing location was in Kiel.

Especially well-known are the so-called Ortgies pistols, which were particularly popular in the United States.

During World War II the company expanded to Gdynia, establishing Deutsche Werke Gotenhafen.

Deutsche Werke facilities and infrastructure were destroyed during World War II by bombing raids.