 Founded on 1 September 1936 under the command of "Fregattenkapitän" Werner Scheer, it was named in honour of "Oberleutnant zur See" Reinhold Saltzwedel.Saltzwedel, a U-boat commander during World War I, died on 2 December 1917, when his submarine "UB-81" was sunk by a mine in the English Channel.The flotilla was based in Kiel for the first few weeks after its formation, but was later moved to Wilhelmshaven, where it remained until May 1940.