By the end of the 1930s, the Malaxa factories were one of the biggest industrial group in Southeastern Europe, and the main provider of equipment for the Romanian Railways during the period.

[citation needed] Nationalised in 1948, part of the company became known as 23 August Works, referring to the 1944 Romanian coup d'état.

During Communist Romania it extended its range of manufacturing by approaching pilot projects to the most Romanian industries but also to other countries in Europe, Asia and Africa.

From 1976 to 1985, 200 DR Class 119 engines were built for Deutsche Reichsbahn (East Germany), as a result of the 1970s Comecon (Council for Mutual Economic Assistance) agreements.

The East German economy was not allowed anymore to build diesel locomotives with more than 1,500 horsepower, and the locomotive builders of the Soviet Union could only supply engines that were too heavy for some lines in East Germany, limited to an axle load (Achsfahrmasse) of under 16 t. Yet, a power output of over 2,000 horsepower was needed.