The company had always planned to set up shop at the new airfield in Speyer, but they initially had problems securing land for a factory.
By this point, the company had arranged a license to produce Morane-Saulnier monoplanes, which were quickly put into German service.
The D.III entered service in August 1917, but was not considered a match for contemporary designs like the Albatros D.V, and instead found a niche role in attacking observation balloons where its high diving speed was a major advantage.
Adaptations of the D.III with the new Siemens-Halske Sh.III rotary resulted in the Pfalz D.VIII, which featured an incredible rate of climb (which it shared with the other Sh.
Nevertheless, the Fokker Dr.I was the winner of the contest, which is not surprising considering that it was the only aircraft entered that was designed from the outset as a triplane, as opposed to being a quickly-adapted biplane.
Although generally similar to the Fokker D.VII in looks and performance, the D.XII was widely considered to be inferior in handling characteristics and difficult to land.
On June 4, 1919, the company was re-established as A.G. Pfalz, which listed its main businesses as "shipbuilding, production, and the buying and selling of industrial goods."
The Speyer airfield was no longer operational, so aircraft repaired there had to be transported to Mannheim-Neuostheim for flight, but the city decided to rebuild the airport over the next year and it re-opened in 1938.
He soon purchased the Speyer plants for additional production capability, adding to the major assembly line in Karlsruhe.
However, Heinkel's death in 1958 ended any plans for expansion into aircraft, and in 1961 the two assembly lines were sold off to Ireland and Argentina.
In 1964 the remains of Heinkel, Focke Wulf and Weser Flugzeugbau merged to form VFW (and for a time, VFW-Fokker).
Some work was also carried out for other aviation companies, notably Messerschmitt-Bölkow-Blohm (MBB), Dornier, and the engine manufacturer MTU.
The company became a supplier for cargo loading systems, ducts and manifolds, as well as additional fuel tanks and fairings.
In 2001 the decision was made to sell shares to the Safeguard International Fund to acquire further capital and to meet the additional requirements of a rapidly growing aerospace market in the future.