NEW RUMANIAN CAPACITY MAY BE ALLEVIATING THE SOVIET DEFICIT OF 40-INCH LINE PIP

Created: 3/27/1963

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NEW RUMANIAN CAPACITY MAY BE ALLEVIATING THE SOVIET DEFICIT OFINCH LINE PIPE

CIA HISTORICAL REVIEW PROGRAM . RELEASE AS SANiTiZED .

R73

CENTRAL INTELLIGENCE AGENCY Office of Research and Reports

NEW RUMANIAN CAPACITY MAY BE ALLEVIATING THE SOVIET DEFICIT OFINCH LINE PIPE

Recent evidence reveals that Rumania is capable of producing and exporting significant quantities of large-diameter pipe to the USSR, which is seeking toerious shortage of such pipe for oil and gas line programs. New spiral-weld pipe mills, which were among the numerous rolling mills recently supplied to Rumania by Westfirms, have the capacity to produce nearly one-third ofon* deficitinch pipe confronting the USSRn partial fulfillment of an agreement to deliver moreons of pipe of all sizes to the USSR. Rumanian exports of pipe rose substantially1 and probably included some of large diameter. The fact that the Rumanian Six Yearthat the plant now fabricating the welded pipe is to expand output of this productons annually suggests that la rge-diameter line pipe mayising share of future exports.

* All tonnages are given in metric tons-

Although Rumania announced plans toew welded-pipe plantublicity on the project has been sparse and inconclusive. ecent evidence, however, confirms that former buildings of aconstruction enterprise have been converted with apparent priorityodern pipe-welding installation. Officially known as the "Fabrica de Tevihe plant has been equipped with at least one andtwo West-German-builtmills, each one of which is capable of0 tonsinchinch pipe annually. The first mill was acquired and assembledhen production of small quantities of pipe was first undertaken. Although the initial output failed to meet line pipe specifications, the problem wasat the beginning1 when the plant began to use West German coiled sheet instead of inferior domestic steel for the production of large-diameter pipe. Zjolish writer, whan recently recommending that hia

country expand ita capacity to produce la rge-diameter pipe, notedIKMAG-buill spiral-weld mill in Rumaniaons of largeipe1 and that additional equipment of this type was being installed 3/ The statementecond unit probably was operating2 appears to be substantiated by official Rumanian statistics which show that the national production of pipe and tubing exceeded the maximum combined capacity of all other Rumanian pipe and tube plants byons. 4/

An analysis of available -Irade information indicates that the USSR is receiving la rge-diameter pipe from Rumania- Constituting virtually the toi.il Rumanian exports of pipe, deliveries to the USSR of all sires of pipe increasedons1 comparedons 5/ rade agreement committing Rumania toons of pipe to the USSRndicates that plans for the period call for substantial annual increases in exports. 6/ Theof large-diameter pipe contained in these exports cannot be determined, but because of Soviet demandsinchn view of NATO embargo policies and the absence of any domestic Rumanian requirements for that sizet would seem reasonable lhat the USSR would procura the maximum tonnage obtainable from Rumania.

An attempt to expand the capacity of the Rumanian plantonsinch pipe probably will depend on the procurement of the necessary equipment and perhaps even the coiled sheet from West

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