Lofwyr has turned Sader-krupp into a nation-state that encompases all of Germany and part of the surrounding lands. It is a black area stripped of resources and even hardy weeds have trouble growing. Germany mass produces all manner of war machines, even creating some more advanced than prewar relics. Instead of mass conquest, which Lofwyr is more than capable of doing, he sells his machines to warlords, anarchists, and any hostile government.
The world would take one massive step out of the darkness if Germany where to fall, but there isn’t any superpower in proximity to rival him.