In May 1937 the unit moved to Neustadt and was redesignated as the Unterseebootsschulflottille, ("U-boat School Flotilla"), commanded by Kapitänleutnant Heinz Beduhn.
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In 1996, the whole training operation moved to the newly built Navy Technical School in Parow, which since then has come to include all the Navy's technical units up to ship's safety technicians (Neustadt/Holst) and the Navy Operations School (Bremerhaven).