COST OF CONSTRUCTION AND CAPITAL INVESTMENT IN SELECTED PLANTS OF THE SOVIET AE

Created: 12/10/1965

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COST OF CONSTRUCTION AND CAPITAL INVESTMENT IN SELECTED PLANTS OF THE SOVIET AEROSPACE INDUSTRY: KOMSOMOL'SK AIRFRAME PLANTS

CIA/RR EPORR Project No. )

CENTRAL. INTELLIGENCE AGENCY Office of Research and Reports

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engines. Intelligence information indicates that Komsomol'sk Airframe

This publication is not an industrial analysis of the Komsomol'sk facility or its activities, but is intended to be used in conjunction with other reports as an aid in such analysis andource of supplemental data. Common construction cost inputsommon construction/ capital-investment ratio have been used in all computations. The basic methodology used to cost the facilities was set forth in anR EP, Cost of Construction and Capitalin the Dnepropetrovsk Missile Development and Production Center.

S

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Summary and

I.

U.

A.

R. Climatic and Soil

of Construction and Capital

III. Limitations

Appendix

Source

Tables

1. USSR: Capital Investment and Cost of Construction of Komsomol'sk Airframe Plants

Combined,8 -

Z. USSR: Capital Investment and Cost of Construction

of Komsomol'sk Airframe Planti-5 . 1

3. USSR: Capital Investment and Cost of Construction

of Komsomol'sk Airframe PlantPre-March

5

Chart

USSR: Komsomol'sk Airframe Plantspane

TUl3 SKC

COST OF CONSTRUCTION AND CAPITAL INVESTMENT IN SELECTED PLANTS OF THE SOVIET AEROSPACE INDUSTRY: KOMSOMOL'SK AIRFRAME PLANTS NO. ND NO. *

Summary and Conchisiona

The total coat of construction of Komsomol'ak Airframe Plants lis estimated toillion, orillion

rubles. #* Based on the estimated relationship between tho cost of construction and total fixed capital assets for thisotal capital investment (which includes cost of construction) at these two plants ia estimated to0 million, orillion rubles.

Since the beginning of Plantexpanded its

facilities by an estimatedercent in terms of value, with nobeing noted since Plantexpandedduring the same period by an estimatedercent invalue, with one major building in the early atagea of construction as

* The estimates and conclusions in this publication represent the best judgment of this Office as

** Throughout thia publication, dollar values are given3 US dollars, and ruble values are given in new rubles expressed5 prices. Dollar values3 prices have been deflated5 prices by3 pricesactor of, and then converted to new rubles5 prices at5 ruble-dollar ratio of1 ruble to USor all industrial construction. The factor for the3 dollars5 rubles.

etailed methodology, see source(For serially numbered source references, see the Appendix.)

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Introduction

Komsomol'sk Airframe Plants if

located in

the northeastern outskirts of Komsomol'sk. USSR. Both plants are adjacent to Komsomol'sk Airfield and are served by major roads and rail spurs.

The original plants were reported to have been under constructionnd were enlarged during Worldnd8

zf The first aircraft were produced

with production continuing thereafter, even though plant construction is reported to have been not yet completed. 3/ Evidence indicates that

always produced component parts and subassemblies and has never assembled complete aircraft on its

for Plant own. 4/

i

/

Within this period.^

ercent in te rma of value. Mo expansion has been noted since

I ha3 enlarged its capacity during this period

in machine/worxsnop. assembly, storage, and miscellaneous facilities by approximatelyercent in terms of value. One major building (No.as started in April4 and is presently in the early stages of construction (see the chart).

Both plants are surrounded by fences, with some internal areas in each plant also secured. It is reported that workers carry I, D. cards and are subject to search. 7/

cres, while No.

* Airframe Plant

now appears tonit ol Airlrame PlantThe original

division into two plants has been maintained in this publication for convenience of reporting.

occupiescres. The adjacent Komsomol'sk Airfield, which serveslyaway field for these plants,eet, of which the portion north of the railroad tracks was constructed

The plant layout and the identification of the major buildings, by type, usedasis for costs in this publication are shown in the chart.* The share of the total building cost found to apply to thetypes of buildings is shown in the following tabulation:

Percentage Share of Total Cost of Buildings

of 3uildlng

Engineering/administration

Heat processing

Machine/workshop

Assembly/fabrication

rage/warehous e

Mi see3laneous

Unidentified

Distribution of costs of construction by-time periods,. ands on the basis of

published reports. 8/

II. Methodology

Construction costs in this publication arc based principally3 unit costs prevailing in an area of the United States having climatic conditions similar to Komsomol'sk.

and Soil Data 9/

* Unless otherwise indicated, identification and dimensions of the buildings are fromID reports.

- The climate of Komsomol'sk is characterized by short, warm summers; very cold, dry winters; moderate snow cover; and moderate precipitation that occurs chiefly in summer. It issimilar to the climate of the Yukon and Tanana Valleys of Alaska

(for example,xcept that Komsomol'sk has slightly longer, warmer, and wetter summera.

Plantssituatedautical mile

northwesterly from the Amur Kiver on relatively flat terrain that is abouteet above the river level. Foundation conditions for surface installations below the level of frost penetration (absolute maximumeet) range from fair to poor.

Facilities

The majority of the buildings are believed to have beenby using steel for framing. of building dimensions, he greatest building height| sin Plant | bs | |

of Construction and Capital Investment

The cost of construction of those items in the category of building construction has been estimated on Ihe basis of the volumetric unit cost for the particular type of structure. Costs of heavyconsisting of sewers, water supply, roads, railroada, fencing, electrical distribution, and grading, are estimated on the basis of plant sixe. work force, conatruclion season, foundation conditions, and construction commonsenss.

Capital investment was determined from the total cost ofof each plant for each time period. The amount ofworkhare of fixed capital assets is knownumber of Soviet industries as The share of construction in fixed capital assets used In this publication is the same ai that of the Soviet automobile industry ercent./ Capital mveatment and costs of construction, distributed over time, are shown in the tables.

* Data are not available on the ratio of the cost of construction to fixed capital assets for the Soviet aviation industry. Of the data available, those relating to the automotive industry are estimated to be most Although the reported figure of7 percent has been used, it should not be construed to mean that the figure is accurateenthercent.

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in.

on estimating these costs. Assumptions, the validity ofbe checked at this time, have been made in preparing thefor this publication.ew of these assumptions concernequipment, and labor actually used, the depths ofandand sources of supplymaterials and equipment. The measurements used inbuilding volume are considered to be the most complete tothe basiselief that errors in the assumptions will tendout, the probable range of error of plus oreen estimated.

USSR: Capital Investment and Cost of Construction ol' Komsomol1sk Airframe Plant

5

S

o"

0

02

3 US $

Nev Rubles

investment cj

which:

processing

purposes o- estimation and comparison,to be accurate as to general magnitude.

5 prices.

e. Derived from costs of construction.

n

have not been rounded.

data, hovever, are

USSR: Capital Investment and Cost of Construction of Xomscurol'sk Air franc Plana

ay

S $

0

2

5

S

i Sew Rubles

Investment c/

vhlch:

processing

Machine/workshop

, Assembly/fabrication

y

e celioneous

For purposes of estimation ana comparison, tn

snovn

rounded.

data.

are

to be accurate as to general magnitude.

Ito.as started In the4 and vas in the

5 prices.

from costs of construction.

tvo buildings denoted as Ho.nd So.lant layout.o- simmer2 ond conpleted byuilding Ho.as startedstages of construction In

ft

4J

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