Industrial Capacity occuppied provinces penalty

[HunStrategos]

Hi all,

I playing my first game as Germany with AoD+IC combo, 1940, May. Normal difficulty.
I have just finished Fall Weiss. (I delayed it to gain peacetime IC bonus longer.)

Please somebody enlight me what is the "Occuppied Provinces Effect" ?

Tooltip on IC icon tells me : Occuppied Provinces Effect -39.2 (-16.2%)

I have actually no occuppied province, I have annexed Yugoslavia and Poland. (But these are owned territory not occuppied.)

I thought that the occupation penalty is realizes as non-national provinces run their factories at 10-20%.
On top of that, there is also a -2.2% Province Efficiency Effect and a -2.8% Revolt Risk Effect (which probably came from my 3.2 dissent rate.)

If that is the price of conquering two small nations than I stop conquering instead. I have gain 10-20 IC with them and lost 40??

 

[HunStrategos]

So, here are the picture from what I mean:

So taking land actually hurts my industry instead of improving it?
That modifier was not present in old Hoi.

Or a technology will eliminate this penalty?

 

[bosman]

It doesn't count for national provinces, so conquering non national provinces doesn't hurt your industry, this modifier just make the benefits smaller than if those provinces were national.

 

[HunStrategos]

Thanks.

You're right. I have watched my previous saves and my total industry slightly increased since then in spite of this growing penalty.