TRENDS IN SOVIET PRODUCTION OF METALLURGICAL EQUIPMENT FOR THE STEEL INDUSTRY 1

Created: 1/1/1963

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Economic Intelligence Report

TRENDS IN SOVIET PRODUCTION OF METALLURGICAL EQUIPMENT FOR THE STEEL

CENTRAL INTELLIGENCE AGENCY Office of Research and Reports

Economic Intelligence Report

TRENDS IN SOVIET PRODUCTION OF METALLURGICAL EQUIPMENT FOR THE STEEL

CiA/RR ER

affecting the United Slates espionage laws.

an unauthorized person is prohibited

CENTRAL INTELLIGENCE AGENCY Office of Research and Reports

L

OOHTENTS

Summary and

I. Introduction

II. Structure of the

Facilities

and Designing

III. Development of Capabilities

of Existing Plants

in Kethods of Production

12

S. Organization of

IV. Production Plans

A. Aggregate

H. Requirements of the Soviet Steel Industry

C. Export

V.

in Equipment Design

18

Coke

[j. Blast

U. Open-Hearth

>. Sauic Oxygen

6. Electric Furnaces .

7- Continuous Casting

Rolling mils and Finishing

Pipe Kill Equipnent

10. Equipment for Mechanization

of Shortfall in

- Iii -

Page

VI. Foreign

.

Appendix A. USSB: locations and Principal Products ofPlants of the Metallurgical Equipment

Appendix B. Modern Hot and Cold Steel Sheet and Strip(or to Be Built) by the USSR

Appendix C. Exports of Rolling Mill Equipment by the European

Appendix D. Source References

'I'ubler,

Selected Types of Rolling Mills in Operation,

19 and Plannedanuary

Production of Metallurgical Equipment, by Type,

nd Planned

Exports and Imports of Metallurgical Equipment and

Rolling Mm

h. USSR: Imports of Rolling Mill

- iv -

oviet mowcrxon of metallurgical equipment

FOR THE STEEL

Summary and Conclusions

The USSR plans toillionf metallurgicalduring the Seven Year Planubstantial increase ofercent above the amount produced. Most of this equipment is intended to meet the growing requirements of the Soviet economy, mainly the steel industry, but substantial amounts are to be exported, primarily to Bloc countries andesser extent tocountries. Increased production is to be achieved primarily by expanding and modernizing existing plants of the metallurgicalindustry. New construction to date during the plan period hes been limited to minor facilities for production of specialized equipment. The only major plant scheduled to be put under construction during the plan periodolling mill equipment plant at Petropavlovsk. Originally scheduled for completion during the Sixth Five Year, this project has been repeatedly delayed, and lt probably was not expected toignificant contribution to production during the Seven Year Plan.

1 the USSRons of metallurgical equipment, slightly less thanons produced The decline in production1 followed increases in production of lU percentercent, respectively,9 'ihe total productionons was behind schedule for fulfillment of the plan for aggregate production of metallurgical equipment. Io meet this goal, the USSR must achieve an average annual productiononsompared with an average annual productiononsa formidable task in view of perennial Soviet failures to meet production plane and the evidence discussed below that construction of new capacity Is behind schedule.

In the case of rolling mill equipment, which normally accounts foroercent of Lhe total production of metallurgical equipment,Las been particularly poor. 1 the USSBons of rolling mill equipment, not only substantially below the planned outputons but also less than0 tons produced in

* The estimates and conclusions In this report represent the bcs-.of this Office as of

** Tonnages are given in metric tons throughout this report.

-I"

Although Increases in production of l8 percent were achieved in9heyrend of declining production- The average annual production of rolling Bill caulpoentas approximately equal to the average production5he previous peak years for production of this type of equipment. To roach the production goal5ons ofmill equipment, the USSR must approximately double its outputchievement of the plan for the aggregate production of rolling millduring the plan period appears to be even more difficult. The USSR plans to produce atillion tons and poaaibly aa ouchona of rolling mill equipment. These plana would require an average annual productionons compared with an average annual productionona.

One reason for the inability to nehieve the planned production of metallurgical equipment la the failure to expand machine buildingsufficiently. The USSR appears to be behind schedule in itsprogram at major plants of the Industry that arc expected to provide most of the planned increase ln production. Only at the Ural HeavyBuilding Plant (Uralmash) at Sverdlovsk does substantial progress appear to have been made in constructing and enlarging facilities,for the most part, they were still not in use during the first half Some progress has been reported ln modernization of other major plants, but construction of new facilities has lagged. In some caeen, there Is little evidence of significant investment at plants withroduction raaponoibilitieo during the plan period. Forno new construction has been reported at the Elektrostal' Heavy Machine Building Plant, whichcheduled to produce tout of the pipe and tube cilia planned- Another deficiency la the lack of progress In establishing specialized machine building facilitioa for production of mechanical equipment needed In mechanization programa for the steel industry. Actual declines in production1 and earlier years may be explained ln port by heavy coapeting desanda placed on plunta of the industry for other types of industrial equipment.

Failure to produce the desired quantities und types of metallurgical equipment required by the Soviet stool Industry also con be attributed in part to difficulties in planning and designing. Faulty planning by the steel Industry itself ln undertaking expansion and Introducing nev technology haa hampered efforts to establish stable, well-defined plans for production of metallurgical equipment. Many of tho probleme can be traced to tlie cumbersome planning ayuten requiring coordination at Gosplan, design Institutes, and lower administrative levels as well as at machine building end steel plants. For example, difficulties Inplanning, designing, and related construction activities help to explain the lengthy lead times required for major rolling mill Bach of tlie throe continuous wide strip mills that the USSR has

put into operation during the current plan periodears or more for completion. Similar difficulties have slowed work on cold rolling mills and finishing equipment. 'Ihe lag in undertaking the task of equipping new basic oxygen stoelmaking shops appears to be the result of indecisive planning as well as delays in solving technical and design problems.

Although shortfalls in production of metallurgical equipment are one reason for delays in commissioning new iron and steel capacity, they have not seriously affected the growth in the total production oi' iron and steeleven toward goals revised upward since the start of the plan period. Delays in the construction of new capacity in the steel industry have been offset by success in obtaining substantially increased production from existing facilities. Moreover, theindustry ha8 performed creditably in building large-capacity equipment units of modern dasign. The new coke batteries, blastand open-hearth furnaces constructed snd equipped by the USSR rank with tho largest in the world. The rated capacities of some of the new Soviet rolling mills also compare favorably with those in the US and elsewhere in the West.

Nevertheless, shortfalls ln production cf metallurgical equipment may affect important programs of the Soviet steel industry other than those for over-all Increases in production. For exaraple, delays in commissioning new iron and steel capacity may adversely affect plans fcr retirement of obsolete equipment. Of greater concern, however, are shortages of epecific types of equipment required by the steel industry for planned improvements in the variety and quality of its finished products. Among the major types of equipment that the USSR has encc.intered difficulties in manufacturing in adequate numbers and variety are cold rolling mills, finishing line equipment (such uslines for galvanizing and electrolyticipe milland heat-treating furnaces for steel mill products (includingproducts). In addition, the quantities of materials-handling and auxiliary equipment now being produced apparently are insufficient for the pace planned for mechanization and au^onution of the steel industry.

As the principal Bloc producer of metallurgical equipment, the USSRey roleupplier of equipment to steel industries in the Bloc. he USSRubstantial net exporter ofequipment, most of which was roiling ;nill equipment, in spite of si fov.fleant imports of rolling mill equipment from Czechoslovakia and tlaut Germany. Although0 several Bloc countries, especially Czechoslovakia, have become more important as suppliers of rolling mill equipment iu intra-Bloc trade and to sone extent in trade withcountries, the USSR remains tlie principal supplier within the Jlloc of larger and more complex types of rolling mills. Coiraiitments to

the Bloc for such equipment as well as scheduled shipments of various types of metallurgical equipment to underdeveloped countries, mainly India and Egypt, call for the continuationigh level of Soviet exports through the remainder of the plan period.

A significant development in recent years has been the acquisition by several of the European Satellites of substantial amounts offrom Western manufacturers and the placing of orders for additional Western equipment for delivery during tho next several years. The main interest has been shown in modern types of equipment needed to expand and diversify production of finished steel. Although the USSH issome of the particular types being ordered and sought from the West, ouch as cold rolling mills and pipe mill equipment, the Soviet lag in relevant technology and the inability to manufacture adequate amounts of finishing facilities for its own needs apparently explain the trend toward procurement from the West.

The USSH Itself has imported only comparatively small amounts of auxiliary rolling mill equipment from the West and is not known to have ordered complete installations for rolling or finishing steel products. On the other hand, facedag in the development of its basic oxygen steelmaking program, the USSB has been negotiating0 for acquisition from Austria* oxygen converterand technology.

* Thetands forn Austria, where the basic oxygen process was developed, and it is commonly used to designate the process.

I. Introduction

In view oT Bloc-wide efforts to expend output of iron and steel,to strengthen Soviet capabilities for production of metallurgical equipment are of special interest. This ls particularly true inasmuch as the USSR not only produces most of the metallurgical equipment for its own steel Industry but also is the principal supplier ofequipment imported by other Bloc countries. The purpose of this report la to describe briefly the Soviet metallurgical equipment Industry and tu examine Its progress and problems during the first half of the current plan period in light of domestic and export demands placed on it. Of considerable Importance ln assessing progress in the metallurgical equipment Industryc programs to adopt newln the steel Industries and to in prove and diversify production of finished steel. Problems encountered by the USSR, thec producer of metallurgical equipment, in manufacturing some of the required nev types of equipment acquire special significance ln the context of an Incipient trend of increased dependence of the European Satellites on Western manufacturers of equipment.

This report is confinediscussion of metallurgical equipment for the steel Industry. As discussed herein, the steel Industryof the plants engaged in production of metallurgical coke, pig iron, crude steel, and steel mill products, including pipes and tubes. Iron ore sinlng and processing equipment is not considered to beequipment for the purposes of this report." Metallurgical equipment Tor the steel Industry includes the following types of:

Mechanical equipment required at coke plants (excluding byproduct chenlcallast furnaces, and steel smelting shops, such as coke pushers, coke-oven charging lorries, door extractors, cose guides, quenching cars, ore bridges, ore unloaders, conveyorskip hoists, slag pots, mixers, charging machines, ladles,installations, Ingot buggies, overhead traveling cranes, and other special handling mechanisms.

Boiling mills and auxiliary equipment for handllne,and finishing steel products. Rolling millside range of mills from primary nllls lor Ihe breakdown of steel Ingots (such as blooming and slabbing mills) to mills for the rolling of

Soviet production and planning data for me-allurgical equipment cx-lude ore mining and processing equipnen-.

diversified steel products, including flat and tubular products, rod and wire,ide variety of shapes and sections (such as rails, beams, channels, angles, and bars). Examples of auxiliary equipnent, which alsoide range of installations, include transfer equipment, shears, slitting lines, levelcrs, callers, pickling lines, tinning and galvanizing lines, and heat-treating equipment.

3- Fabricated components that are part of the technical equipment (such as blast furnace bells, coke-oven doors, and machinery supports). Such components may be distinguished from the building, concrete work, structural steel, and other structural elements needed in the construction of coke ovens, blast furnaces, and steel furnaces.

Metallurgical equipment as thus defined also must be distinguishedide variety of other installations and ancillary facilities essential to the efficient operation of modern iron and steel plantB. Examples include power plants, pump rooms, turboblowers and compressors, electrical drives and other electrical equipment, oxygen generating facilities, instruments, measuring and control equipment, refractory materials, railroad tracks, docks, and storage facilities. Equipment and facilities of these various types arc supplied by many branches of industry.

II. Structure of the Industry

A. Production Facilities

The Soviet metallurgical equipmentajor branch of the machine building industry, consistsiversified group of machine building plants of whichew are engaged solely in production of metallurgical equipment for the steel industry. In fact, the wide variety of Industrial machinery and equipment produced by these plants precludes easy identification and Itemization ofresources such as labor force and production facilities. The major producers of metallurgical equipment are heavy machine building plants with casting, forging, metalworking, and handling facilities required in the manufacture of large and heavy products. Eight of these plants account for much of the production of metallurgicaland nearly all of the production or rolling mill equipment that normally constitutes aboutoercent of the total production of metallurgical equipment."

In spite of the importance of this nucleus of heavy nachine building plants, dozens of other industrial plants produce various

*ist of these major plants and their principal metallurgical equipment products, see Appendix A.

types of metallurgical equipment. Heavy machine building plants in Debut'tsevo, Zhdanov, Syzran', and Krasnoyarsk are significantof ladles, charging machines, and other materials-handling equipment as veil as components for rolling mills and blast furnaces. Kolst and transport equipment plants in Leningrad and Moscow produce metallurgical cranes. Among the more important producers of rolls for rolling mills are specialized plants in Dnepropetrovsk andhe Slavyansk Machinery Plant is an important specialized producer of machinery for coke batteries. The Starostin Machine Building Plant in Odessa is the only specialized producer of weight-measuring machines for blast furnaces, steel mills, and rolling shops. Severalequipment plants collaborate with heavy machine building plants In the building Of electric furnaces for the steel industry. equipment plants ln Novosibirsk and Moscow have participated in the manufacture of equipment for electric furnaces up toons ln capacity, and the Electrothermal Equipment Plant in Saratov hasln the manufacture of small-capacity units, primarilyons.

Metallurgical plants themselves meet most of their extensive requirements for spare parts and replacement components and produce some equipment for modernization and reconstruction of their facilities. In addition, an extensive network of suppliers from many branches ofprovide materials anded components, such as electric drives and other electrical equipment, instruments, control devices, lubrication Systems, ball bearings, and gears.

B. Administration

The plants of the metallurgical equipment industry, which, before the industrial reorganizationere controlled by the Mainfor Metallurgical Machine Building (oUMMASh) of the Ministry of Heavy Machine Building are now subordinate to local economic councils (sovnarkhof.es). On the other hand, these plants are still subjectonsiderable degree of centralized control. The State Institute for the Design and Planning of Metallurgical Plants (CIPBOMEZ) is directlyfor the establishment of equipment requirements of the Soviet Steel industry, which form the basis for production plans forequipment. In addition, Gosplan and organizations such as the State Committee for Ferrous and Nonferro-is Metallurgy issue directives concerning assignments for production of metallurgical equipment. heavy competing demands placed on these plants by sovnarkhozes and other planning bodies frequently result in delays in completing and delivering orders for metallurgical equipment.

* Most of the rolls produced by these plants are replacement rolls for rolling mills already in operation in the steel industry and are not reflected in the unnual production data (tonnage} for metallurgical equipment.

C. Research and Designing

In drawing up plane for metallurgical plants, GLPBCWEZ and its affiliates at republic and local levels must coordinate the work of numerous scientific, research, and design organizations. Of fundamental importance because of its relevance to trends in tbe design ofequipment is research in Iron and steelmaking processesby research institutes and steel plant laboratories. The Central Scientific Research Institute of Ferrous Metallurgy (TsHIIChM) devotee part of its research effort in ferrous metallurgy to equipment problems. GIPROMEZonsiderable share of the designing of metallurgical equipment but delegates responsibility for most of this work to design staffs of machine building plants ac well as to several specialized organizations, mainly the State Institute for the Design and Planning of Coke-Chemical Enterpriseshe State Institute for the Design and Planning of Steel Workshe State All-Union Design and Planning Institute for Ferrousnd the All-Union Scientific Research Institute for Heatormerly the Electric Furnace Special Design Bureau. In the development of designs of new models of equipmeat, particularly rolling mills and auxiliaryajor role is. played by the All-Union Scientific Research and PlanniDg-Design Institute ofMachine Buildinghich frequently collaborates with designers at the plant level. The Central Scientific Research Institute of Technology and Machine Building (TsPTiTTMASh) also helps to develop new models of metallurgical equipment. Another important function of TsHIITMASh ls to conduct research programs concerningof materials, manufacturing processes, and other technical problems of machine building.

Ill. Development of Capabilities

A. (jeneral

The USSR plans to achieve Seven Year Plan goals for production of metallurgical equipment primarily by expanding and modernizingplants of the metallurgical equipment industry. Increasedin the manufacture of various types of metallurgical equipment also is expected to help make possible higher The only new construction reported to date during the plan period has been on minor facilities for production of specialized equipment. Only one major machine building plant, to be located at Petropavlovsk, has been scheduled to be put under construction during the plan period, but work on this project has not yet been started. It is not likely that Soviet planners are counting on this plantignificant contribution to production during the Seven Year Plan.

* For serially numbered source references, see Appendix D.

B. New ConstructIon

In2 it was announced that work had been completedlant In Armenia for the manufacture of vacuum furnaces needed for production of high-quality steel. 2/ No additional information is avallablo concerning this plant. Conotruction is underwaylant at Zhdanov to manufacture steel fabrications for steel converters, carUuooving machinery, and other equipment. The first section of tbe plant was scheduled for completion/

Tha only known project for constructionajor machine building plantew rolling mill equipnent plant at Petropavlovsk. Originally scheduled for completion during the Sixth Five Year Plan, thia project has been delayed repeatedly. 0 It was announced that construction was to be started/ The current status of this project is not known, but at best, even with an early start on conotruction, the plant probsiily could be only in partial opora-

C. Expansion of Existing Plants

Much of the planned Increase in production of metallurgical equipment is expected from four plants: the two largest plants, the Ural Heavy Machine Building Plant (Uraimash) at Sverdlovsk and the Novo-Krazna tor sk Heavy Machine Building Plant, as well as the Elektro-stal' Heavy Machine Building Plant, whicho produce most of the new Soviet pipe and tube mills during the plan period, and the South Ural Heavy Machine Building Plant at Orsk, which is scheduled for major expansion. Planned production of rolling mill equipment by Uraimashons, or Slightly more than the amount produced during the precedingyears. 5/ At the Novo Krama-torsk plant the annual production of rolling Dill equipment Is to be tripled during the plan period. 6/

At Urulmush,he major shops are being expanded,tlie steel foundry, the press and forge shop,achine assembly shop. ew shop for production of rolls for rolling mills was completed near the end/ arge shop for weldedhas been partly completed. Earlyquipment was being installed ln the six bays of the first section while construction was underwayecond section with seven bays. 8/ Other new facilities nearing completionarge iuborutory building and experimental Shop. 9/

At the Novo-Kramatorsk plant the only known new construction is the recently completed engineering wing with library, office, and other facilities for designers at then the other hand, there is evidence of progress in the modernization and enlargement of

equipment facilities at the plant as well as installation of new ew zachine tools were installed in various shops at the plant An lncreaae in steelmaking capacity also was made that year by reconstruction and enlargement of the open-hearth furnaces at tho 1 the Novo-Kraaatorak plant Installed Induction heat-treating equipment and en installation for vacuum degassing of large steel ingots uparly2 it was announced that electroBlog remolting facilities had been Installed for casting of high-quality steel Ingots up tooons, la/

Scheduled construction projects at the South Ural Heavy Machine Building Plant, which reportedly is to have its total machine building capacity doubled during the plan period,ew metal structures shopew section of the open-hearth shop. Work was underway on these projects near the andut scheduled completion dates are not Although some moderniration of foundry facilities has been accomplished at the Elektrostal' plant, there is no Indication that new construction has been undertaken or planned at this plant.

ing

|IJ.m uv j

formation ia not available concerning specific ceasureu to strengthen capabilities for production of metallurgical equipment or relateda. One program of particular importance Is that for expanding capacities of electric furnace building plants, Including those at Novosibirsk and

Scats capacity may be provided by utilisation of other suitable eachlac building plants for production of metallurgical equipment. One measure of this typo is the apparent reactivation of the Izhora plant near Leningradroducer of rolling mill equipment. One of the oldest heavy machine building plants in the USSR, tho Izhora plant la not known to have produced significant quantities of metallurgical equipment in the pastears. The plant is now engaged inacter (mm) structural mill with technical equipment0

D. Improvement"ethods of Production

Improvements in methods and techniques of production constitute an integral part of investment programs at major equipment plants. One

Capacities of other major plants are to be Increased. At the Staro-Kramatorsk Heavy Machine Buildingew steel casting shop vas commissionedut no cub sequent construction has been16/ Extensive reconstruction and expansion are planned for the Alma-Ata Heavy Machine Building Plant, but, because of Insufficientof investment funds, work haa lagged on nev projects, includ-new machine bays, costing facilities,oiler

Investment is planned at other plants of the Industry, but In-

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Important objective is improvement of foundry operations, including wider use of mechanized techniques. The ELektrostal1 plant was one of tho first plants in the USSR to introduceechanized continuous flow line for production of large casting molds by meansandsllngermall-series At Uralmash, where steel foundry facilities are being expanded, extensive use is planned of mechanized continuous flow production techniques by specializing production of steel castings in groups according to weight. Mechanized techniques are to be used in production of cores and molds, for shaking-out operations, and in the cleaning of

Another objective of Soviet producers of metallurgical equipment is better utilization of machine tools by Improved scheduling of For examplo, the Elektrostal' plant has spent several years in classifying ita parts and components according to similarities inand production processes raquired. Several of the classified categories concern parte for rolling One practical result of these efforts has been the establishment of sections for "group machining" of some of these parts, although the extent to which the technique Isused on parts for rolling mills is not

Other improvements In methods of production are being effected as existing shops are reequipped and new ones constructed. Metals of higher quality aro now available for the manufacture of equipment with the greater use of vacuum degassing and electroslag remolting and the installation of new electric furnaces in casting shops. Methods of heat treatment have been improved by the recent installation of new induction heating furnaces at Uralmash and the Bovo-Kramatorsk plant. Increased use has been made of modern welding techniques for suchas hard surfacing of parte cf metallurgical equipment subject to intense wear, such as blast furnace belle; manufacture of welded ladles instead of heavier riveted models; and depositional buildup of worn rolls of rolling mills and repair of other types of metallurgical equipment. Especially importanteans of reducing requirements for largeand forgings is tho growing use of electroslagoviet-developed technique, ln the manufacture of large components such asfor rolling mills- Completion of new welded Structures shops atand the South Ural plant will permit considerably increased use of this technique. Electroslag welding also has bcon used to reduce the time required for assembly and installation of blast furnace units.

S. Organization of Production

A long-established and much-discussed objective of theequipment industry has been specialization in the manufacture of various types of metallurgical equipment. Some progress haa been made in the establishment of specialized production responsibilities

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among the major plante of the industry, particularly for the principal types of rolling niUe. Uralmash has prlaary responsibility for tho nanufacture of cold rolling mills as veil as blooming mills and plate mills. The Novc-Kranatorak plant specializes In the manufacture of slabbing nllis and continuous hot sheet and strip mills but alsocold rolling and other types of mills. The Blektrostal' plant has been assigned primary responsibility for the manufacture of pipe and tubo mills.

The USSR has been leeo successful ln seeking to concentrateresponsibilities for the total production ofmaller number of plantseans of Increasing both theand the volume of .production. Certain novnarkhozca continue to be criticized in the Soviet press for organizing production ofequipment In machine building plants of their economic regions. 2hf The assignment of production tasks to these plants, however, probably Is explained by the Inability of established plants to meet growing demands for metallurgical equipment and other types of heavy equipment for uhich they continue to be responsible.

A variety of proposals have been made to establish specialized machine building facilities for spare parts snd replacement components. For example, the need has been citedpecialized machinery plant ln the Urals, similar to the Slavyansk Machinery Plant in the Ukraine, for the manufacture of spare* ports, standard components, and specialized equipment for coke ovens. When made singly at local repair or machine shops, such items ore expensive and often are of poori/ production also haa been proposed for such equipment items as replacement components for metallurgical cranes and delivery and exit guides for rolling Such proposals are frequently advancedeans of reducing the number of auxiliary workers in the steel Establishment of an effective spore parts industry reportedly has been opposed, however, because of the high capital expenditures27/ The same factor also may explain the lack of progress in establishing specialized production facilities for the various types of mechanical equipment needed in the program for mechanization andof Soviet steel plants.

TV. Production Plans

A. Aggregate Production

. ons of metallurgical equiu-mentubstantial increase ofercent above the amount

-

produced* Ho official goal5 has beenfor metallurgical equipment, but the annual production of rolling mill equipment is scheduled toons. It is not clear how much rolling mill equipment the USSH has planned to produce. inimum, an increase ofercent above the amount producedppears to have been plannedorillion tons, as cited in one document outlining plans for development ofof rolled An increase ofercent is called forto plans for the development of the metallurgical engineering branch of heavy The larger increase would provide an aggregate productionons of rolling mill equipment. This total would representercent of the planned production ofequipment compared withercent, which appears to be consistent with plans for increased emphasis on equipment needs of the rolling and finishing sector of the steel industry. The goals forthe physical volume of production during the plan period reflect aggregate requirements for both Soviet industry and export programs.

B. Requirements of the Soviet Steel Industry

tost of the metallurgical equipment produced by the USSR is used to satisfy domestic requirements. he USSR devotedercent of the domestic production of metallurgical equipment to its own steel industry, although on an annual basis the proportion ranged fromercent8 toercent Ihcse data are indicative of the total volume used at home but do not reveal the varied equipment needs of the growing Soviet steel industry. Equipment is required not only for the construction of new, diversified capacity but also for the modernization and rebuilding of older, exieting facilities. In addition, large quantities of materials-handling and auxiliary equipment arefor current programs of mechanization and automation in the Soviet steel industry.

Planned construction of new pig iron capacitymountsillion toillion tons. For this purpose, the USSR plane to buildlast furnaces, predominantly with working volumesubic meters Increased requirements for metallurgical coke are to bc mot mainly by construction ofeu coke batteries.

* Some of the metallurgical equipment produced by the USSR is for non-ferrous metallurgy, but by far the larger share is for ferrous metallurgy, more specifically the steel industry, thus reflecting the considerable difference in scales of operation. oviet production of the principal nonferrous metals (aluminum, magnesium, copper, lead, zinc, and tin) wasillion tons, whereas production of crude steel amounted8 million tons.

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he USSH plans to constructillionons of nev crude steel capacity. Open-hearth furnaces willto predominate in this nev construction, although the relative share of production from these furnaces is expected to decrease. The relative share of converter steel is to be increased by construction of basic oxygen converters vith capacities,ons. Twenty-five electric furnaces are to be built, some vith capacities of flo

In the case of new rolled steel capacity, the goal isillion toillion tons. During the plan period the USSB plans to put into operationew hot rolling mills. Of this number,re to be plate and sheet mills with an aggregate annual capacity6 million tons. IhJ Some of the types of mills that the USSH plans to have in operation by the end5 are shovn ln Although the total number of these types of rolling miUs is to be reduced during the plan period, theannual capacity will be considerably larger because of the higher productivity of new mills compared with older mills scheduled forand the rebuilding of some older mills to larger capacities. In addition,ozen or more blooming and slabbing mills arefor installation. Eleven cold rolling mills arc scheduled to be put into operation as well as heat-treatment facilities and continuous finishing line equipment. Including continuous lines for pickling, galvanizing, and electrolytic

The USSR plana to manufacture and put into operation aboutills for production of steel pipes with diameters frommonsiderable number of mills for cold rolling of pipe and tube Of particular importance are new mills required forof large-diameter pipe for gas and oil pipeline programs. Heat-treutment facilities for pipe and tube products are to be considerably improved and

5 the USSR also plans to construct and have in operation continuous casting installations with an annual outoutinion tons.

Soviet plans for construction of new capacity encompass theobjective of permitting retirement of old and obsolete equipment.he USSR plans to retirelast furnaces with anannuul capacityillion tonsk open-hearth furnaces with an aggregate annual capacity of moreillion tonsills, includinglate and sheet mills. The rolling mills have an aggregate capacity ofillion tons, although the current annual production at these mills isillion tons,illion tone of sheet

* ollows on

- ik -

Tabic 1

USSR: Selected Types of Rolling Mills in Operation9 end Planned

Planned to Be

I jt. -

Of Which: Modern Mills

Capacity (Thousand

Mills in9

Total

iLean I

Capacity (Thousand

Of Which: Modern Mills

roduct lor. (Thousand

Type of Rolling Mill

Tens)

: -r

Tons)

Tons;

Ti

billet

(skelp)

bar

bar

bar

flection bars

w

C. Export Requirements

Although the planned volume of exportss not known, substantial amounts of equipment have been scheduled for delivery to the Bloc and underdeveloped countries (mainly India and Egypt). , exports amountedons, orercent of the domestic production of metallurgical equipment.*

V. Performance

A. Aggregate Production

1 the USSRons of metallurgicallight decline fromons produced Production of rolling mill equipment, the largest subcategory, also declinedevelons0ons, considerably below the planona. The decline in productionollowing gains in production achieved9attern prevalent in previous years of failure toteady rate of growth in Soviet production of metallurgical equipment and rolling mill equipmentnd Seven Year Plan goals are given in Table

The increases in production during theears of tho plan periodfor metallurgical equipment, l4 percent90 and for rolling mill equipment, aboutercent ln both yearspermitted the induatry to reach new peak levels. In tho case of rolling mill equipment, however, tho gains in production were less impressive in light of tho fact that they hadrend of steadily declining production in preceding years. It ie noteworthy that tho average production of rolling mill equipmentctually was not ouch higher than in the previous peak years5

From the point of view of: progress toward fulfillment of aggregate production goals for the plan period, the results obtainedere disappointing. In the case of metallurgical oquipment theona, orercent of the totalons planned. Te reach the planned total, the USSR must produce on theons of metallurgical equipment every year.

In the case of rolling mill equipment the shortfall was even more considerable. The total productionons, orercent of tho lower aggregate goalillion tona) planned,

* Factors related to the Soviet export programrein VI,elow. ** ollows on

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Table 2

USSR: Production of Metallurgical Equipment, bynd Planned

Thousand Metric Tons

U

1

lan

lan

Total Metallurgical Equipment

/

d/

N.A.

/

Boiling Mill Equipment

2

/

/

/

/

Metallurgical

N.A.

i.0

otherwise indicated, source jihf.'

but onlyercent of the higher goalons). To rcuch the lower goal for aggregate production, the USSR must achieve an average annuol productionons every year. The higher goal would require an average annual productionons.

B. Trends in Equipment Design

The USSR manufactures metallurgical equipment of conventional, modern design. In blast furnace and open-hearth design the USSR leads the West in several respects, largelyesult of systematic adoption of both foreign and domestic technical innovations." ajorof the metallurgical equipment industry, as described below, has been to provide mechanical equipment for blast furnaces and open-hearthas well as coke ovens that rank among the largest in the world. On the other hand, the USSR has lagged in designing and constructing large-capacity electric furnaces and basic oxygen converters. The USSRlarge, complex rolling mills, but, for the most part, follows developments in the Host in tho basic designing of this equipment.

Batteries

Tbe USSReader in the trend toward coke ovens of large capacity. 9 the USSRoven coke battery with ovensn volume compared06or older Soviet models and0or the normal oven In use in the US. SI/ Tbe new battery haa an annual capacity of more New batteries with ovenso kon volume are in the planning stage.

3. Blast Furnaces

he USSR constructed blast furnaceso continue tho Soviet trend toward large-capacity blast lurnaces. urnaces, which are the largest in the world, have estimated annual capacitiesillion tons based on current operating practices.** esult of Soviet progress in the

" Tt should be stressed that many of the advances ln iron and steel-making are the result of technical innovations, such as the use offuels and high top pressure in blast furnace operations and the use of oxygen und improved refractories in steelmaklng. Although theequipment industry provides busic mechanical equipment needed in metallurgical production units as well as auxiliary equipment forof related materials-handling processes, various other industries provide equipment for the intensification of metallurgical processes,compressors, oxygen-generating facilities, and refractories. High productivity achieved by these and other Soviet blast furnaces reflects progress in equipping blast furnaces and auxiliaries to permit extensive use of modern operating practices, including careful preparation of the charge, high top pressure, high blast temperature, oxygen in the blast, natural gae as an auxiliary fuel, and controlled moisture content. Development work has been undertaken, as lt has in the US, on computer control of blast furnace processes.

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construction of large blast furnaces in recent years, tbe average size of Soviet blast furnaces is now approximately equal to the average US furnace.

U. Open-Hearth PurnaceB

The USSR is currently constructing open-hearth furnaces with capacitiesons that rank with the largest in use in the world. on open-hearth furnace io under construction. 5jj/

Oxygen Converters

The USSR is behind schedule in its basic oxygen steelmaking program. The only oxygen converters currently in operation are those of comparatively small capacityp toonsinstalled before the Seven Year Plan. Work has started on the manufacture of equipment for new converterson capacity, which are scheduled to be in operation Design work was to be undertaken2 on larger unitson capacity. 5j/ Tn the US, where the basic oxygen steelaaking process is gaining rapidonwas put into operation late

Furnaces

The largest electric furnaces in operation in the USSR have rated capacities ofons, although heats ofons have been made. The first unit of this size was put into operationesigningGo-ton furnace was undertaken ao earlyut it Is not scheduled to be in operation Ih the US,furnaces capable of outputsons or more have been usedumber of years. 6l/

7. Continuous Casting

The USSR, which first began research on continuous castingas constructed facilities for commercial scale as well asoperations. The process was designed to permit directof billets and slabs to eliminate both the pouring of ingots and the subsequent use of breakdown mills (blooming and slabbingowever, the process is still ln the development stage in the USSR. Existing units were reported to have0 tons of steel Considerable developmental work hae been accomplished in other countries, primarily in Western Europe, and the number of

* The USSR also has lagged in the construction of oxygen-generatingrequired by the trend toward increased use of oxygen innot only in new basic oxygen converters but also in open-hearth steelmaking.

-

commercial installations is In -the US, although some small-capacity units have been built end operated, the process has not been adopted commercially, because of uncertainty about the ability to achieve the large tonnages required for efficient operations. umber of producers in the US areincreased interest in recenthowever, and tvo companies have ordered full-scale, continuous casting machines to make large steel slabs.

8. Rolling Mills and Finishing Equipment

Rolling mills built by the USSR during the current plan period conform generally to modern standards for speed of rolling, weight of starting material, and use of continuous arrangements in rolling andproduction processes. esult, capacities of new Soviet mills compare favorably with those of similar mills in the West. Form blooming mills constructed by the USSR reportedly ore capable of annual outputsillion tona. m blooming mills, described as fully automatic with annual capacitiesillion tons, are scheduled to be put into operation during the plan Thern continuous billet mill was designed for an annualof moreillion Available informationimilar trend toward large capacities for other Soviet mills, such as wire, rod, and bar mills. The USSR also has manufactured continuous wide atrip mills with outputs planned as highillion tons.

On the other hand, many of the larger mills, particularly multistand mills, require long lead times for design, construction, and installation. Forighlym rail-structural mill was put under constructionequired extensive revision of original equipment components before being put into operation Each of the three continuous wide strip mills put Into operation0ears or more for completion. Inlong lead times for large mills frequently resultailure to incorporate improved design features, necessitating modification orin order to attain desired levels of output and operating Difficulties currently are being encountered in designing end manufacturing cold rolling mills. Only one continuous-typem cold strip mill, was completed. Two other continuous-type mills scheduled1 were not completed. The lug in constructing these and other types of cold rolling mills also has slowed work on development of modern types of finishing andequipment, such as continuous lines for pickling, annealing,tinning, and galvanizing. Some of these modern types of finishing equipment currently are being manufactured for the first time.in the USSR.

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9. Pipe Mill Equipment

In tho expansion of the Soviet pipe end tube industry,importance is attached to the design and manufacture of pipe and tube welding Seamless mills, which accountedf the total production of steel pipesre otill beingbut in comparatively smaller numbers. Forontinuousfor production of seamless tubes up to ICG am in diameter was put into operation early in Equipment for this modern mill, which ap-pears similar in design to US mills, consists mainlytand mandrelstand reduction mill,izing

The Soviet trend toward welding Bills Is explained by factors similar to those that alresdy have led to greatly increased use of these mills ln the West: comparative simplicity of equipment requirements and hence lower capital costs, lower operating coots, and ability to produce thin-walled pipes and tubes of accurate dimensions. Among mills of this type Installed during the plan periodn clectroweld mill,an eiectroweld alU. The USSH also has constructedspiral veld mill capable of producing pipe upci ln diameter. Recently, another mill of this type began production of pipe upm inobile spiral weld unit also has been developed for direct use in the field where pipe is being

Difficulties have been encountered, however, ln designing, manufacturing, and installing some of these mills, Reported design and equipment defects apparently explain the failure of the first Soviet eiectroweld mill to reach planned levels of output for production of badly needed large-diameter pipe upm ln diameter. JJ/ Workecondof this type apparently is considerably behind7V The USSR also Is lagging in the ranufaclure of other types of pipe mill equipment, particularly heni-treating furnaces and modernequipment, such as pipe-cutting and pipe-threading machines, boring and polishing machines, and protective coating equipment- Tji/

10. Equipment for Mechanisation Programs

Although new basic units (blast furnaces, open-hearth furnaces, and rolling mills) constructed by the USSR generally are characterisedigh degree of mechanization in keeping -ith their high outputprograms for mechanization throughout the steel industry are behind Perhaps the most progress has been made ln tlie case ofoperations. Technical publications indicateigh level of mechanization has been attained in this area with the exception ofoperationa. JJ/ One well-placedxpert has stated that the level of mechanization in coking operations is the highest of all the segments of Soviet ferrous More progress has been made

-

in mechanization of blast-furnace and staelmaking operations than in rolling and finishing operationG, but. In general, production of many planned types of mechanization equipment hai; logged or haa not been organized. An Indication of current trends, however, is given by enumeration of some nev types of equipment now being produced or under development. Of the specialized equipment that the USSR plans to adopt for blast furnace operations, several types are In vide use In the West. Examples Include ore-averaging equipment, charge spreaders, vibrating ecreena for sifting coke fines, and large-capacity pig ironor the mechanization of handling operations In Bteel Bhops tho USSR is designing and producing nev materials-handling units vith enlargedand Increased durability such as charging machines, cacting cranes, and pig Iron conveying Considerable attention also Is being given to the development of equipment for the mechanization of auxiliary operations in steel shops. In particular, machines are being developed for the preparation and treatment of scrap, furnace maintenance snd repair, flushing and removal of slag, preparation of Ingot molds, opening and closing of tapholes, and repalr'of ladles. 8l/ Deficiencies in steel rolling and finishing operations, vhlch current programs areto remedy, are the Inadequate levels of mechanization of older rolling mills and the general lag in adoption of mechanization techniques in auxiliary operations, such as cutting, straightening, coll winding, stacking, aad

C. Sigalflcance of Shortfall In Production

The log in production of metallurgical equipment is one reason for failure to meet schedules for commissioning new iron and steel he USSRillion tons of blast furnace3 million tona of crude steel capacity,9 million tons of rolled steel Carryover projects completed ln the first quarter2illion additional tons of blast furnace capacity* million tone of crude steel capacity. At the end of the first quarterovever, commissioning of newwas short of that plannedy the following estimated amountfl; blast furnaceillion tons; crudeillion tons; and rolled steel capacity, as much. million tons. 8jl/

Delays in commissioning new capacity, however, have not seriously affected the planned grovth in the total production of Iron and steel and are unlikely te do sonless additional problems are Such delays have been offset by success In obtaining substantially Increased production from existing facilities. On the other hand,In production of equipment that delay the commissioning of newmay adversely affect plans for retirement of obsolete andequipment. Moreover, continued logs In production of special types

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of metallurgical equipment may affect programs for improving tha variety and quality of steel mill products, particularly cold rolled products, and for mchanlxatloa and modernization of the ateel Induatry. Aaabove, the USSR has encountered difficulty in Manufacturingtypes of equipment in adequate nuabers and variety, including cold rolling mills, finishing line equipment (such as continuous lines for galvanizing and electrolyticipe "ill equipment, heat-treating furnaces for steel mill products (Including tubularnd various types of equipment for mechanization and automation programs.

One reason for the failure to achieve the planned production Lry a:r. ri>:',

paclty available for this purpose. Delays or. the part of major equipment producers as well as suppliers of materials and components ln meeting scheduled delivery dates frequently are caused by heavy denands on these plants for other types of industrial equipment as well as metallurgical cquipnent. Such demands ray explain, in part, the absolute drop lnof rolling till equipment1 as well as.

Results obtained during the first half of the current plan period indicate that investment in major plants of the metallurgical equipment industry is behind schedule. Also, little progress has been made inspueiftlized plants for production of equipment needed forprograms ln tlie steel/ Completion of expansion proj-ecta currently underway at major plants may be expected to alleviateproblems, but evidence exists that Soviet planners are concerned about the adequacy of these projects to keep pace with long-rangerequirements of the eteel industry. Various proposals have beenfor the construction of new metallurgical aachlne buildingamong them new facilities in eastern areas to serve new steel66/

Planning and designing difficulties also help explain failure tu :ueet schedules for production of daaireil quantities and types of For example, the lag ln undertaking the task of equipping new basic oxygen steelmaking shops appear! to he the result not only ofin solving technical and design problems but alao of Indecision in the eteel industry as well as at Co Bp lan and other planning and technical levels. Negotiations conductedC with Austria toequipment and technology have reflected the lack of antlafactory progress In the domestic oxygen converter program.

Similar difficulties have been encountered in planning expansion In ether segments of the steel induatry, particularly in the adoption of modem types af rolling and finishing facilities. esult, the various

plants of tho metallurgical equipment induatry frequently do not have well-defined production plane. For example, the Important Uralmach Plant has been cited in the Soviet press ae havingong-range plantable plan for the immediate years ahead for production of rolling bIU Scheduling of production at the plant level also has been affected adversely by delays in translating basic designs into detailed blueprints and other working drawings. In addition, both the scheduling and the execution of production of equlpeent frequently have been disrupted by Ineffective coordination of related supply and construction tasks. These Inefficiencies in mobilizing and utilizing industrial resources frequently have resulted in protracted delays in completing major projects. As discussed above, lead times for desi^i, construction, and Installation of large, multlstand rolling mills have been as high as ') and evenears comparedndears in the US.

VI. Foreign Trade

A. "

The USSR is the leading exporter of metallurgical equipment in the Sino-Soviet Bloc. Although it imports substantial amounts ofequipment, the USSR haset exporter The size of the export balance has varied considerably, however, aB shown by cooperative data given inn the volume (expressed in tons) of exports and Imports. TTie decline In Soviet exports0 resulted from the completion of several major projects, mainly in Chinan India.

Most of the metallurgical equipment exported by the USSR ismill equipment. 9uch exportsercent, respectively, of all exports of metallurgical , for which period complete data are not available, the proportion of rolling mill exports may have been somewhat lower but probably no lower thanercent.

Although complete data are available concerning tbe volume of Soviet imports of metallurgical equipmentnly partial data arefor exports, as shown inwhich follows on. ** Only fragmentary data arc available for the period Bow-ever, the USSR may haveet importerew of these years. Although equipment assistance was provided to Bloc countries, thelower level of domestic production during those years probably did not permit asevel of exports as that On the other hand, imports of equipment (in the form of reparations deliveries) from East Germany, the major source of imports during those years, may have beon higher than in subsequent years.

- 2lt -

Table 3

USSB: Exports and Imports of Metallurgical Equipment and Rolling Mill Equipment a/

Thousand Metric Tons

6 7 _ 6 90 1

Exports

9 9 /

Of which:

Rolling

equipment b/ 7

Imports

. _

equipment 3

Of which:

Rolling ,

equipment 3 9 1

Export balance

9 3

Rolling _

8 2 .

only explicit shipments of equipment. Data arefor shipments of equipment as part of completemake up the larger Share of exports.

The principal recipients of Soviet export* of rolling pill equipment have been bloc countries. Several of these countriesrolling mill equipmont but not in adequate quantity or variety to meet the needs of their steel industries. The USSR, the largest Bloc producer of rolling mill equipment, has been the principalof this equipment, particularly the larger and more complex mills that other Bloc countries do not have the capability to manufacture. Examples include the modern hot and cold sheet and strip mills needed to expand production of flat rolled products.*

Soviet shipments to tbe Bloc of rolling mills and other types of metallurgical equipment have been particularly Important in the construction of nev steel plants and expansion of major existing plants. Soviet equipment sent to Communist China durings contributed substantially to the buildup of capacity of large plants at An-ehon, Wu-han, Pao-t'ou, and several other Polandons of Soviet equipmentost of which went to the Lenin Metallurgical Plant in Nova Other importantplants in the Bloc that have received substantial amounts of equipment from tbe USSR include the Lenin Metallurgical Plant in Dial-trovo,; the Hunedoara Metallurgical Combine in; and the Danube Metallurgical Combine in Dunaujvaros (formerly Czechoslovakia hasonsiderable amount of Soviet metallurgical equipment, mainly rolling mill equipment, for several major plants.

The USSR also has exported metallurgical equipment to several underdeveloped countries, including Egypt and India. The latter has received substantial amountfi of equipment for construction at Bhilai of an Integrated steel plantapacityillion tons of crude steel. Tbe major items of equipment installed at Bhilailoomingontinuous billetail-structuralerchant mill, and equipment for three coke batterieB, three blast furnaces with volumesach, and six open-hearth furnaces with capacltleaons

B-

Most of the metallurgical equipment imported by the USSR consists ofll equipment (see , Imports of rolling mill equipment accounted forercent of the total weight of all metallurgical equipment imported by the USSR, helping to offset, at least in part, the substantial volume of Soviet exports of this equipment.

ist of mills of thla type that the USSR has built or isto build for Bloc countries, see Appendix fl. bove.

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The principal suppliers of rolling mill equipment are East Germany and Czechoslovakia. During the, these tvo countries accounted for more thanercent of the total Soviet imports of rolling equipment, as shown in Table k.

Table 'l

USSR: Imports of Rolling Mill

Thousand Metric Tons

Total

Of which:

Czechoslovakia East Germany

Czechoslovakia and East Germanyercent of total

6 7 3 1 ? 3 9 2 1

U 9 7 6 6 5

100 9& 92 85 91 $fy

East Germany haa provided the USSR with wire-drawing equipment, small bar mills, tube mill equipment,ide variety of auxiliary equipment and components for rolling mills, such as shears, levelers, roller tables, gears, and Equipment recently obtained from Czechoslovakiaontinuous billet mill, much of the equipmentm blooming mill, und various types of auxiliary equipment for rolling

Imports from the West have made upmall part of the total Soviet imports of metallurgical equipment. Imports of rolling millfrom the Host have not included complete rolling millnly auxiliary equipment. Austria has provided auxiliary rolling mill equipment and rolls for rolling mills as well as small amounts of steel smelting Prance and West Germany also have provided small amounts of auxiliary rolling mill

C.

Although the planned volume of Soviet exports of metallurgical equipments not known, the USSR probably will continue

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to export substantial amounts of this equipment, mainly to tbe Bloc. Czechoslovakia Is scheduled to receive equipment for its nevplant In East Slovakia,labbingm continuous hot strip mill,d0-am tandem cold sheet/ Planned shipments to Bulgaria include much of the equipment for the nev metallurgical plant to be built at/ Rumania istoeal continuous hot sheet mill for its nev plant at Gal at/ Poland will receive equipment for the Lenin Metallurgical Plant and other plants, including tvo slabbingipe rolling mill,ontinuous cold rolling/ Planned shipments to East Germany are not definitely knovn, but they mayontinuous hot atrip millold sheet/ The USSR also plans toequipment to North Korea, particularly for the Klachaek Iron and Stool In the case of China, aggregate shipments ofarc not likely to be as large as those. Deliveries were completed. of equipmentew outstandingail-structural milleamless tube/ but only comparatively small amounts of equipment are known to bo

In addition, the USSR plans to provide metallurgical equipment to underdeveloped countries, mainly India and Egypt. India is to receive Soviet assistance for expanding crude steel capacity at the Bhilai Metallurgical Plantillionllllon/ Egypt Is scheduled to receive from the USSR rolling mill equipment valued atillionabbingh cot mill, and cold strip/ Smaller amounts of equipment are scheduled for shipment to Indonesia ond/

On the other hand, two recent trends appear likely to modify, the pattern of trade provoiling. In the first place, several Bloc countries ore becoming more Important as producers andof rolling mill equipment.** Although the position of the USSR as tbe principal Bloc supplier of this equipment, particularly the larger and more complex rolling mills, ls unlikely to change, the trend toward increased activity by these Bloc countries may be expected to reduceoa the USSR for aome types of rolling mills. In addition, the USSR is scheduled to increase its imports froa Bloc countries of those types of rolling mill equipment within their productive capacities. From the point of view of the USSR, these developments have the advantage of

* In new rabies as established by the Soviet currency reformI. ominal rate of exchange based oa the gold content of the respective currencies0 ruble to This rate,should not be Interpretedrecise ruble-dollar relationship that will yield un equivalent dollar value. ** rief account of these changes, sec Appendix C.

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enabling Soviet machine building plant* to devote greater attention bo other required types of equipment.

The cecoud significant trend is the growing interest of the Bloc in obtaining equipment froa the West, suggesting that tbe gradual strengthening of Bloc capabilities, aa mentioned above. Is notto keep pace with growing requirements for metallurgical Moreover, some of the types sought froa the Wesx are those that the USSB has not produced in sufficient quantities for its own neods. Significant quantities of equipment, including pipe mill equipment ond finishing facilities, already have been obtained by the Europeanfrom Western manufacturers of equipment. Fcr example, Poland, which to date has been the principal recipient of Western equipment, haseamless pipe mill from Westot dip tinning installation from theonsiderable quantity of finishing equipment from the US,ontinuous galvanizing line (installed, an electrolytic tinning line (to be put into operation, and various specialized auxiliary/

In addition, most Bloc countries have made extensive Inquiries and apparently haveonsiderable number of new orders with Western manufacturers of equipment. For example. East Germany Isto receive froa West Germanywo pipe-weldinga cold sheetod mill; cold drawing facilities for tubes, bars, and wire; and auxiliary equipment for heat treatment und vacuum casting, llj/ East Germany ulflo has ordered tube rolling and drawing facilities from France for delivery. llA/ Rumania reportedly hasonsiderable amount of rolling mill equipment from West Germany,ontinuous billet mill, two merchant mills,ontinuous rod/ Rumania also has placed an orderranco-British consortium for/ Considerable interest also has been Bhown by Poland, Czechoslovakia, 3ulgaria, and Hungary ln obtaining equipment fron the Vest. The full extent of negotiations and order-placing is not clear, but available evidencerend of growing reliance by the Bloc or. the West for an important soare ofw rolling and finisaing facilities.

The USSR, confrontedog In its own domestic converter program, has engaged in protracted negotiations0 with Austria for acquisitionD oxygen converter equipment and technology. The negotiations also are of interest to the European Satellites, soee of which have negotiated independentlyand so far unsuccessfullywithD i'is the USSR has agreed to provide assistance to them in constructing new oxygen converter shops.

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USSR: LOCATIONS AW) PRINCIPAL PRODUCTS OK THE MAJOR PLANTS OP TKE MBrALI.URGICAL EQUIPMENT INDUSTRY

Heavy Wichine building Plant Alma-Ata

Principal products: Wire-drawing und tube-drawing mills; equipment for coke batteries, blast furnaces, andmills.

Metallurgical Equipment Plant Dnepropetrovsk

Principal products: Equipment for coke batteries, blast furnaces, open-hearth furnaces, and electric furnaces; components for continuous castingand rolling mills; auxiliary equipment SUCb as machines for baling scrap andund servicing open-hearth furnaces (probably the widest range of individual types of metallurgical equipment of any plant in the industry).

Heavy Machine Buiiding Plant Elektrostal1

Principal products: Pipe and tube mills, structural and bar mills,

liquid friction bearings for rolling mills.

U. Irkutsk Heavy Machine Suilcingi2TK) Location: Irkutsk

Principal products: Equipment for blast furnaces and open-hearth

furnaces und for wire-drawing and tube-drawing mills; components und auxiliary units for rolling mills.

5. amaT.orsk Heavy Machine Building Plant (NKMZ)o n: Kraina torsk

Principal products: Hot. strip mills, slabbing mills, and cold wide strip mills; large-capacity cranes and ladles for steel casting shops; mixers and shears.

-

b 4

Co. ft to*

Heavy Machine Building Plant Kranatorsk

Principal products: Cold narrow strip Bills, including nultiroll

(Sendzimir-type) cold rolling mills; auxiliary equipment for processing strip and sheet, such as levelere, shears, trinming lines, and sheet stackers; auxiliary equipment for pipe mills.

7. South Ural Heavy Machine Building Plant (YuZTM) Location: Orsk

Principal products: Equipment for coke batteries and blast furnaces,

steel-pouring ladles, continuous castingblooming mills, billet mills.

heavy Machine Building Plant lmenior UZTM)

Location: Sverdlovsk

Principal products: Blast furnace equipment, blooming mills, billet mills, plate mills, rail and structural mills, cold rolling mills, pipe and tube rolling Bills, wheel rolling mills.

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APPENDIX B

MODaJK HOT AMD COIJ3 STEEL SHEET AND STRIP MILLS BUTLT (OR TO BE BUILTTBY THE USSR FOR BLOC CCUKTH"iBS

continuous hot sheet Kosice, Czechoslovakia

Remarks: Scheduled to go into operation The Novo Krama-torsk Heavy Machine Building Plant is to provide the mechanical equipment. CaecboSlovakia is to provide the necessary electrical equipment.

igh tandem cold sheet Kosice, Czechoslovakia

Remarks: Scheduled to go into operation The Uralmash plant is building the mill. Part of the equipment has been shipped.

it* *

3- igh continuous hot sheet mill Location: Nova Huta, Poland

Remarks: Put into operation Built by the Novo Kramatorsk Heavy Machine Building Plant.

k. igh tandem cold sheet mill Location; Nova Huts, Poland

Remarks; Put into operation Probably built by the Uralmash plant.

hot sheet Dunau,)varos, Hungary

Remarks: Put into operation Built by the Hovo Kramatorsk Heavy Machine Building Plant.

cold sheet DunauJvaros, Hungary

Remarks: Expected to be in operation Being built by the Uralmash plant.

7- m continuous hot strip mill

Location; Elsenhuettenstadt, East Germany

Remarks: The USSR may provide equipmentill of this type, vhich East Germany unsuccessfully sought to obtainS/

-

sheet mill

Location: Elsenhuettenetadt, East Germany Remarks: Similarbove.

hot strip umania

Remarks: One of the most Important Bills planned for the new steel plant at Galati.

semlcontlnuous hot sheet An-shan, China

Remarks: m plate mill built by the Uralmash plant and put into operation tond sheet mill was built by the Novo Kranatorsk Heavy Machine Building Plant ond put into operation

cold rolling An-shan, China

Remarks: Built by the Uralmash plant and put into operation

hot sheet T'al-yuan, China

Remarks: Built by the Novo Kranatorsk Heavy Machine Building Plant.

Delivery of equipment is believed to hove been completed earlynd the mill may have gone Into operation later that year.

plate Uu-ban, China

Remarks: The Uralmash plant was shipping equipmentnd the mill Bay have been put into operation

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APPENDIX C

EXPORTS OF ROLLING MILL EQUIPMENT BY THE EUROPEAN SATELLITES

A.

Apart from the USSR, only CzechoSlovakia and East Germany exported rolling mill equipment ir. substantial quantities. the second most important Bloc producer of rolling millnormally exports more than one-half of its domestic production of this equipmeni. / zechoslovakia0 tons of rolling mill equipment compared0 tons90 tons/ Ofons of this equipment produced, the USSR received UO percent, orl" all/ Ilorth Korea has been the principal recipient of the remaining Czechoslovak exports of rolling mill equipment, and smaller amounts have been received by Poland, East Germany, China, and/ Among the principal types of rolling mills manufactured by Czechoslovakia for both domestic and export markets arc blooming mills; continuous billet mills; large tar mills; continuous mills for production of rod, wire, and narrow strip; and pipe and tube mills,

has not undertaken the manufacture of continuous wide strip mills or continuous-type cold rolling mills.

Rast Germany formerly ranked ahead of Czechoslovakia in annualof rolling mill equipment but in recent years has fallen behind, h'hereas Czechoslovakia has nonsiderabl. increased its production rolling mill equipment, East German production has declined. O) East Germany0 tons of this equipment compared0 tons/ Most of the rolling mill equipment produce! by East Germany has been for export, primarily to the USSR. The USSR, in fact, receivedercent ofons of rolling millproduced by East Germany/ The principal types, manufactured by East Germany are small bar mills, wire drawing equipment, pipe mill equipment, small sheet, and cold ml ling mills,ide variety of auxiliary equipment.

, only comparatively sn^ll amounts of rolling mill equipment were exported by other Bloc countries. Hungary has exported pipf'ube millhf and Poland has exported components for rolling mills, including rolls, reduction gears, and pir.ion stands.

-

B.

zechoslovakia0 tons of rollingot only substantially more than0 tons produced0 but also only slightly belov the goal0 tons/ production at this levelrobably would make feasible fulfillment of the plan to provide the USSRons of rolling mill equipment/ Shipments to the USSR during the5-ycor period amounted0 tons.

Several other Bloc countries plan to Increase exports of rolling mill equipment. East Germany is scheduled to step up its exports of rollingequipment to its principal customer, tbe USSR,/ Hungary, which already has shipped pipe Bill equipment to Ch'eng-tu in China, has started delivery of additional equipment for another pipe plant in/ Hungary also is expected to provide equipment for the overhaul of several pipe and tube plants In the USSR and Czechoslovakia Igg/ and may provide nev pipe mill installations to other Bloo countries and possibly non-Bloc/ Poland began to export significant quantities of rolling mill equipmentl and apparently plans toexports Polish exportsImall bar mill to/ machinery for the manufacture of wheels and axles to/ and port of the equipmentillet mill to Delivery of the remainder or the equipment for this billet mill was to have been madejid equipmentlate mill also is to be provided to East Germany. ljj*/ Poland also plans to ship additional rolling mill equipment to India and Yugoslavia, and negotiations with several other non-Bloc countries may result ln additional orders for rolling mill/ Moreover, as part payment for the substantial amounts of equipment to be imported Trom the USSR, Poland has undertaken to provide that country withequipment within its productive capacity. Ij6/

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APPENDIX D

SOURCE REFERENCES

Evaluations, following tbe classification entry and designated Eval., have the following significance:

Source of

Deo.onfirmed by other source*

ompletely- Probably true

sually_ Possibly true

airly- Doubtful

ot usually- Probably false

ot- Cannot be Judged

annot be Judged

efers tc original documents of foreign govcrnmenti and organizations; copies or translations of such documentstaff officer; or Information extracted from such documentstaff Officer, all of which may carry the field evaluation

Evaluations not otherwise designated are those appearing on the cited document; those designated "RR" arc by the author of this Ho "RR- evaluation ia given when the author agrees with the evaluation on the cited document.

2

Except for CIA finished Intelligence, all sources used are evaluated

JPRS. 5. 5. u.

Gt Brit, BBC. Sunu/^ry of World Broadcasts,SSR, Weekly 3- eekly Supplement,,. (J.

-

Kazakhstanskaya pravda, U.

MashinotitroiteY',. 1. U.

FBIS. Economicoscow, OFF USE.

iev, OFF USE.

State, Moscow. ,ov 6l. U.

Gt Brit, BBC. Summary of World Broadcasts, pt I, USSR, Weekly

Supplement,- U.

Rossiya, U.

Pravda Ukrainy,ep 6l. U.

Gt Brit, BBC. of World Broadcasts, pt I, USSR,

5. U.

13- Ekonomicheakaya gazeta,ul 6l. U.

FBIS. Economic, OFF USE. ill. Ekonomicheskaya U.

Pravda, u7

FBIS. Economiciev, OFF Ekonomicheskayaen 6l. U.

18. JPRS. 5 Uningradskaya pravda,ul 6l. U.

JPRS. . Ik. OFF USE.

. OFF USE.

Promyahlenno-ekonomicheskaya gazeta, U.

Byulleten'ekonomicheskoy.

U.

2k. Izvestiya, U.

faimlya, U.an 6l7 P. 8. U.

Metallurg,. U. U.

Voprosy ekonomiki,. kl. U.

nd.

vtomatizatsiyaosnova rosta proizvoditel'-nosti truda (Mechanization and Automationthe Basis for Growth in the Productivity of U.

JPRS. ,. 5. U.

Vestnik mashinostroyeniya,. 6. U.

JPRS. U.

U.

U.

Mashinostroitel',. U.

- U.

Pravda, U.

JPRS. - U.

U.

Ibid.

-

42. Ibid.

*3, U.

Ui. USSR, Central Statistical Administration. Pronyshlennoot' SSSH (industry. U.

Central Statistical Administration, narodnoye khozyaystvo

6 godu (national Economy of the USSR- U-

idj (National EconocvUSSR. U.

arodnoye khozyaystvo1 godu (National Bconony

of tbe USSR,. U.

, Narodnoye khozyaytitvo0 godu (National Kconomy

of the USSH,, . Hayevekiy, etit., above). JPRS. 5 Dec 6l, 'J.

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U. (hereafter referred to as USSR. neshnyaya torgovlya SSSR6 god (Foreign Trade of the

USSR,b1' hereafter referred to as

USSR. neshnyaya torgovlya SSSR7 god (Foreign Trade of the

USSR, (hereafter referred to as

USSR. neshnyaya torgovlya SSSR8 god (Foreign Trade of the

USSR, hereafter referred to as

USSR. neshnyaya torgovlya SSSR9 BOd (foreign Trade of the

USSR, W. (hereafter referred to as

USSR - neshnyaya torgovlya SSSR0 god (Foreign Trade of the

USSR,I- IN (hereafter referred to as

USSR. neshnyaya torgovlya SSSR1 god (Foreign Trade of the

USSR, U^ (hereafter referred to as

USSR. neahnyayu torgovlya, U. Ibidl, U.

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ov 6l. torgovlya,

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CIA. FDD Summary6. OFF USE. U.

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-v h

.

9&.

99.

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.

. V.

.

1 Feb 6l,. U.

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p. HH 2. OFF USE. Gt Brit, BBC. Summary of World Broadcasts, pt II, Eastern

Europe,2. ron and Steel Engineer, Jun 6l,. U. Volksfltlpme, Magdeburg, U.

F3IS. Daily Report (USSR and East3. HHFF USE.

Ot Brit, BBC. Sugmury of World Broadcasts, pt II, Eastern

55 Vneshnyaya, 1$

USSR. USSR. USSR. USSR. USSR. USSR. USSR.

USSR.

Europe,0 U. FBIS. Daily Report (USSR and East)OFF USE.

bove).

901 Vncj

-

,bove).

bove).

Dully i'X'vor1, . ' '

OFF USE.

OF? USE.

. .go

of

JPRS. . OFF USE. CIA. FDD Summaryominia libera, Bucharest, U.

pt IT,. U. ;.

pt III, Far East. J. U.

pt I, USSR,,

&ycie gospodarczc, Warsaw,

Gt Br

Europe, Weekly Supplement , Her 1 yr-:irT- : ilrlt, BBC. Summary of

Weekly Supplement,t Brit, BBC. Siaimary Of World Broadcasts,

6 Oct 6l, State, Calcutta. 1 U.

FBIS. Daily Report (USSRast.FF USE.

CTA. FDD9 Jun 6i, OFF USE. i'koilotnlcheskayaay 6l. II. CIA. C.

State, V' irsaw. ft !. F USE.

Chemical Trade Journal and Chemical Engineer,

ir

.

.

Brit, BBC. Summary of World Broadcasts, pt II, Eastern

Europe,. Iron and Steel Engineer,. U. State, Bonn. ct 6l. C. Neue Huctte, East Berlin, U. Air,0 AISW. ct 6l. C. Gt Brit, BBC. Summary of World Broadcasts, Weekly Supplement,

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U.

Commerce. Doc5 C. State, London. 0 U. Gt Brit, BBC. Summary of World Broadcasts; pt II, Eastern Europe, Weekly Supplement,,. U. State, Berlin. un 6l. OFF USE. Czechoslovak Foreign Trade, Feb 6l, p. 6. U.

Czechoslovakia. Statlstlcka rocenka republlky1 (Statistical Yearbook of the Czechoslovak,. U-

CIA. FDD SummaryU,. OFF USE.

Ibid.

East Germany. Statlstisches Jahrbuch der Deutschen Demokratischen

Kepublik J

public,

Statistical Yearbook of the German Democratic. U.

Berli

atistlsches Jahrbuch der Deutschen Demokratischen Repubilk utisticol Yearbook of the German Democratic<

0

. O.

lyajra.

Vneshnyaya, Vneshnyaya, Vneshnyaya,

of World Broadcasts, pi.9 pravo,ir.yaydyt , . IJ.

Voprosy ekonomiki. U.

Gt Brit, BBC. Summary ofWorld Broadcasts, pt II, Eastern Europe, U. Ibid.

Figyelc. Budapest. U.

Ot Brit, BliC. Summary of World Broadcasts, pt II, Eastern

Europe,1l. U. WiaLtoino^ci hutnlcae, Katowice, Jan 6l, p. yO-jj. U. State, Sarajevo. ', Hov 6l. OFF USE-

-

Gt Brit, BBC. Summary of World Broadcasts, pt II, Eastern

Europe,0- . Ibid.

Przeglad tcchnlcny,ar 6l. - State, Warsaw. , C.

U-

Gt Brit, BBC- Summary of World Broadcasts, pt II, Eastern Europe,- U.

L36.

Trybuna ludu,ul

Current Digest of the Soviet Press,un bl.

-

Original document.

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