In 1877, the first Italian watch factory was founded here, taken over in 1899 by the German Jughans. At the time, it was the largest watch factory in the world, with production reaching 1,500 watches per day in the 1920s.

During the Second World War, the factory was converted for military use: military fuzes were produced here. The Junghans factory, after the closure of the Arsenal, became the most important production reality on the island: about 650 workers were employed in the production of war devices. The activities ceased in 1993, after being purchased by Montedison, which was also conceived for a very short time as a production site for the construction of some parts of the Moro di Venezia, a sailing boat that competed for the America's Cup.

After a long restoration, the buildings of the Junghans factory were converted to new use. In addition to some residential complexes, the building now houses the theater, which has retained the historical name of Junghans.

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