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Arado has moved the development of the new Ar 396 to Société Industrielle pour l'Aeronautique in occupied France. German and French designers designed a simple wooden structure aircraft here, only the middle cabin part of the fuselage was designed as a lattice of steel tubes coated with a thin sheet of steel. Steel pipes were also in the wing beams. The air-cooled in-line twelve-cylinder Argus As 411 TA-1 with an output of 426 kW with a two-bladed automatically adjustable propeller was chosen as the drive. The aircraft manufacturer SIPA was to build three prototypes of the Ar 396 and 25 serial machines of the verification series.