PRODUCTION AND CONSUMPTION OF ALUMINUM IN THE SOVIET BLOC

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01093A000300050003-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 32
• Document Creation Date: November 9, 2016
• Document Release Date: February 17, 1999
• Sequence Number: 3
• Publication Date: February 5, 1953
• Content Type: REPORT

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O,VJMGN AM IPJM'
CA/RR -22
Prof.". 58?51)
5 brUW7 1953
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CLASS. CHANGED
Q DECLASSIF
AUTH: HR 7-9.2
DATE/ 1EVIEWEX,,
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Office ' gein- +a Remo 1HC1
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CAS
i~ , a + a a a a a a a a a a a a a -,. .. a a a a Q a p a a , . 1
11. 1btbc4 a n d Processes of Production . a a e s a v a :? -, a a a 3
9 4
111. Production and Supply of Al in m. in the Soviet Bloc
A. Production Primary /.s `~,,,+ a a a .+ ? a a .. + a a ? r a ? a + a a a 9
I. PL'imaI rryi . .. s ? a h s a s a a r a a a a o + >
a. U~y ~y~,46{LtJ ~ r a r a a ? a ? b ? a* a , o a , + . 9
2. SecOY.i'~+i % Mir ? . I' 4 a 1 a * a ..> a a a 'l a ?.
3+ 'fibtal Production a a a ? a a a 4
B, Imports ' 1 a a tl a ? ^ a A H 4 D -a ?
I. 9 L~ ygais ,~ y a a a ~+ ? a i a . a ? a 1 a l w a ! D 1 /l
2. Illeg . a a r a. a a. a ? s a a a a , a a a a a s
14
15
15
> ~Y
16
11^ Coos ion of A. i m in the Soviet Bloc
A, Coasw*tion by Industries ? a a . a a ? a a . a ?, a a . > 17
V, a RO6 'O n ? a o w s a a ? O a ? ? ? a a a r. a a a e a s 19
71y.: Limitations and Winiex ilities . ? a ? r a 7 > . z 21
"TXtc Conclusions o a?? a. a b a a? w a a .. a r a? a > .l 2 1
ndixes
Appendix A. Methodology a : a a v a e ? a a t = a ? a a
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Pw_
AV Ddix D. We in X teUigenc a e n i ? a ? u n o 5 + a ? o u 24
AM*nd x C. Sources aW Evaluation of Sources
025
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CIA/RR PR-22
(ORR Project 58-51)
SECURi'3'Y I1gF't?RAA' IOo
PBc SCTION AM ro S' IM10N OF AU,.wnuM In THE SOi1ET BLOC*
Aluminum is a metal of major importance to the Soviet Bloc because
of its extensive use in the manufacture of afire a 't and weapons as
well as in war-supporting industries. In an effort to build tip an
Alum mum reserve, the USSR hens been increasing its own production of
aluminum as well as building up the production of the Satellite
countries. With the initiation of CQCC 4 (Coordinating Comittee on
East-West Trade) and the passing of the Battle Act of 1951 it has
become difficult for the Soviet Bloc to import at.umivxxm. Ina further
effort to increase the reserve,, the :xS$R has insisted on the inclusion
of even small amounts of aluminum imports as a prerequisite to many
trade agreements. There is evidence that the Soviet Bloc also has
been importing aluminum illegally.
Although there are no chorte ee of the raw materials for
producing aluminum in the a'SSR,its own deposits are neither high-grade
nor 1 ated near good transportation, and the 118SR imports high-grade
bauxite from Bungary. The use of thermally genrated electric power
tends to make the cost of Soviet Bloc aluminum high. Upon the completion
of hydroelectric generating stations, the coat probably will be reduced.
Aluminum is produced in the USSR in seven plants, with the two
largest at Kamansk-.?Sral' ekiy and Krasnotur I ink in the Urals area.
Others are located at Knndalskshs, Jolkhov, Zaporozh l ye, Yerevan, and
Stalinsk. Reports indicate that an additional. plant is under con-
ctructioa at Cherepovets, north of Moscow, and that an alumina reduction.
plant is plsru d in the Angara River region in Eastern Siberia.
Aluminum production in the Satellite countries is increasing. It
is believed that aluminum is being reduced in Fast Germany at
Bitterfeld; in Buangary st Tatabanya, Ajka, anti Inotu; and in China at
Chang-Tien and that pleats we pled for Czechoslovakia, Rumania, and
Poland.
Estimated production of primary alumina m in the 7288 for the fiscal
year 1952-53 is 232,500 metric toms, and the ply objective for 1955
This report contains infcrmat,ion available to Cif as of 1 June 1952.
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is 440, 000 uric tons . The production of al uuminum for the Soviet Bloc
in the fiscal year 1952-53 is estimated to be 279,100 uric tons of
primary al inuz and 20,900 metric tone of old-scrap iworn-out machinery
and other items),* and it is eatimated that the 1955 production of
1umi um in the Soviet Bloc will, be 575,000 metric tons of primary
aiumi r um and 619,000 metric tone of primary alumimm ard old scrap.
Legal shipments of alum tm.xm in 1951 from COC(4 countries to the
$aviet Bloc amounted to more than 4,500 metric tons. The Soviet Bloc
has iaUsted on the inclusion of even relatively small amounts of
aluminum imports as a prerequisite to ratification of trade agreements.
Illegal shipments in the fiscal year 1951-52 amounted to approximately
11,000 metric tons.
it is estimated that the Soviet Bloc will be able to allocate
about 87,500 metric tong of aluminum to their metal reserves in the
fiscal year 1952-53 and that the total. reserve in prune 1953 will be
382,500 metric tons.
Consumption of alumimm by the military segment of the Soviet Bloc
is estimated to be almost 44 percent of total cons-x*tiort. War-supporting
industries are estimated to account for almost 35 peri:ent, leaving
21 percent for other uses.
Since about 75 paercrent of Soviet Bloc primary aaalxuai.rnmi is produced
by thermally generated power, it. is believed that the generating plants,
as well as transmitting, switching,cnd rectifying electrical equipment,
are the most vulnerable segment of the Soviet Bloc a1w 1n.xm ind>i,atry.
It is concluded that the Soviet Bloc is currently producing enough
alumirDum to net essential military requirements, to supply its war-
supporting industries, to supply household and other requirements, and
to allow enough for addition tc the metal reserves. The legal and
i.11egU purc1ziaee of aluminum and reports of aluminum shortages within.
the Bloc, as well as announced plan objectives, indicate that additional
alumimm is needed by the Bloc to meet fully its requirements, including
planned reserves.
New scrap, generated during manufacture and returning to imau icture
is not couxated as production in this report.
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Ali Amin; is a . Ls at ut a is not
vaiiable ?Fit this time. It is estimated, however, to in the
nelghborhocxl of 1,000 metric tons per year,
2.s Sly,
With the initiation of COCOM 60J in 1950 and of the Battle
At in 1951, 61 many shipments of e.luainum Into the Soviet Ploc, which
previously would hwe been merely normal Import-export trade, either
had to geese, or bad to be done illegally. Merry such illegal shipments
have been detected, and the difficulties encountered in making these
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illegal purchases, as well as the higher prices paid and the additional
trt ahipment cbeargee incurred, indicate a great desire on the part of
tba Soviet Bloc to obtain al inwa1 even in relatively mail individ z a.1
amount s ?.
Considering the reserve which t J* Soviet Bloc ic believed
to bttrre eccumulvtec~ it might seem that tt illegal purcbases of the
Satellites bum not been made to build up tare, USSR reserve, b= rata c
for Satellite production .i-eq%tired by the MR, 'Me fact, however, that
illegal shipments of al.wnimim into the Satellite countries must be
paid for in hard caah, of which they axe short, togetber with the
emphasis which the ?6$R Itself placed on purchases of Norwegian aluminum,
indicates that the illegal shipments are actually purcheAed by Soviet
agents., It is concluded that the `Y6SR has decided that the Soviet Bloc
zeds the alum1n sud is willing to devote the money and effort necessary
to obtain it by illegal means. ' position of the SR appears to be
not dissimilar to that of the t-S,, which limits the use of alumintim and
imports aluminum at prices above the world market price but still
et'oempts to increase its reserves.
An estimate of the rmouut of alumirwm illegally shipped into
the Soviet Bloc during the fiscal year 1951-52 is approximately 11,040
metric toms, This figure is an, estimate, and the figures used in
its computation may contain a certain amount of duplication. The figure
arrived at is, bawever, indicative of the fact that illegal trade is
occurring. Since many illegal siaipments may not have been detected,
the actual figure may be considerably ktigber than the estimate given,
IV, t;racnsumpt ion of A1uminar in the Soviet Bloc,
As Cone ption by TJ ustries.
Aluminum is vital to Soviet Bloc planning t cause of its extensive
use in t-be construction o:t aircraft, guided missiles, engine parts, and
other war material. It is also important to war-supporting industries
because of its use in the deoxidation of steel, in the mauuactu:ze of
electric power transmission cables# and as a substitute for copper, as
veil as because of its n:,xmerou.a civilian and domestic ruses, which are
less important in the Soviet Bloc than in the demacre iee .
Intelligence estimates of alumimam oonoumpt;ion in the USSR and.
the Satellites vary widely. A State Department report indicates that
cono mption is 90 percent mili:,ary or paramilitary, with toner goods
taking 1,000 metric tons ainz lly and industrial cons rtioxa less than
2 0, 000 metric tons. !k5/ Other estimates f. reports give widely varying
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consumption patterns and quantities. / Since such a lack of accurate
info Lion was enccuntered, the approach was taken of obtaining
estimated alumic n consuoptions by various cow industries, adding
aQ more or less arbitrary factor based on the aasewaipt on that estimates
of a particular industry would tend to underest m>uate rather than over-
eeticnmte as lumimum conaaumption, aid totaling the remits.
Results are indicated in Table 7.
Table 7
Constnwtion of .Alu .sum in the Soviet Bloc
in the Fiscal Year 1952-53
Induastry
Thousand. Metric
Tons
Percent
Iron and Steel
125
5.4
Trausportaation
25.0
10.9
Electrical and Production
Tool Industries
12.O
18.3
Military
1W.0
43.6
Household uses
25.0
10.9
Other
25.0
10.9
229.5
100,10
In the absence of definite information, determining the
conmem3 t ion pattern for a1 =i mz z is difficult,, becaensc it is
consumed in many industries and locations. This is in contrast to
determining production., beemise aalumirum is produced in relatively
few plants and, its production may be estimated by c icon with
known technological information. The approeeb taken above is believed
to be the best available under the circumstances but is subject to
wide error.
B. Trade in Aluminum.
There are no records or reports available which indicate that
the USSR or the Satellite countries are aexpor?t:arg a'lumfri ui.
Comps natively little is known about details of antra-Bloc
trade in alumimam. The USSR is reported to be s supplier of aluminwn
to Zast Germnz y 661 and Poi sad. ,6J1 Hungary is reportedly a supplier
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of alb to the USSR. J Information on intra-Bloc trade Is so
Incomplete that a detailed picture cannot be aesembled. It appears,,
hvwaerrer, that the USSR is villiz% to supply alum to Satellites
which are deficient in this metal but is willing to do so only in cam
the aluminum is used for military or pexamilitaxy products, some of
which a probably returned to the R,: ire al=inum can be ex-
tracted from the Satellites,. this is being done. Projected plans for
a luminuui industries in the various Satellite countries will umke them
independent of Soviet deliveries, if accomplished,
17. Reserves.
The position of the Soviet Bloc as to irm in the fiscal year
1952-53 is shcnm in. Table 8,
Table 8
l a ce Statement of Alumimm in the Soviet Bloc
1.952--53
Thous ,xd Metric Torts
Primary Alumimm Production
and Old Scrap 300.0
Imports 17,0
TOtaliL9
Exports Negligible
Consumption 229.5 f
Reserve 87.5
'7.`otal 111-0
.~ _ iwre f gar useid arhari7
The estimated aluminum, reserve- of the `35,'x{ and Srtefl.ite Zountries
is indicated in Table 9.-w
alit` ollc~T~rr on p : 20 .
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Table 9
Estimated Aimmtinatm Reserve in the Soviet Bloc
June 1953
Thousand M trio To
Estimated Total Reserve, June 1952
295 C)
Be serve AccumaLed . June 1952 to
June 1953
875
3
Estimated correct vithir~ pig u tM1s 2
percent
The fact that an alumin m reserve is being built up in the TIM
is indicated by s. number of prisoner-ofwer (RI) reports. One report
indicates that 50,000 metric tons of aiumimain were stored in a warehouse
in McascowP a Other R4 reports estimate varying amounts of aluminum
stored., Z1-Data obtained, through these sources are so fragzaenta- y that
no Independent check of reserves of aluminam has been possible, but
the numfoer of reports indicates that a.?uminum reserves do exist. The
reserves of aluminum estimated to be avai1ttbie to the Soviet Bloc are
not surprising when considered from the point of vier of US reserve
objectives and war requirements. The l&mitions Board eLtimetes US re-
quirements for mobilization to be more than 2 million short tons of
e u iimm in the first year,, rising to more than 3 million short tc
by the third year, and suggests a reserve objective of 3 million abort
tons. 12,E
That the Sciv et Bloc is able to accumulate a reserve of aluminum
and still is importing aluminum from the West may appear to be
contradictory. Since the USSR was short of aluminum during World. War 11,
and since Its alumini i .industry is relatively vulnerable from the
atardpoint of electrical. equipment,, if not from location, it would not.
be surprising if the Soviet Bloc alumi xi reserve were built up to an
amount sufficient to Mort a full-scale war for a considerable length
of time
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'The limiting factors in the atumin.u . industry in the Soviet Bloc!
are coined to possible shortages of majutfacturia equipment; electric
power, and the amount of money available to fulfill input requirements.
There are no shortage of rear materials or technical ability.
An alb reduction industry Is extremely vulnerabis from the
point of vier of supply of electrical energy, 9-rA even a abort cutoff
in electric power is disastrous. If the alumiamo-= m2lt cools or freezes
in the potl the partially refined aluntnvm must be chipped out before
Axod zction am be resw 3.. Since an es'GlmmUis '15 perceug of diet
Bloc aluminum is produced by electric power generated in vulnerable
thermal plants, it is believed, therefore, that the electric pacer
plants end the transmitting, switching, and rectifying electrical
equipwent am the scoot vulnerable segments of the aluminum Industry,
Adequate supplies of rof materials and facilities for producing
manufe,cturing eriui; nt exist within the Bloc, import controls std
preclusive buying of soave types of equipment or misteriel, the uzual cold
war restrictive prot:eseesr are not, therefore s applicable.
It is concluded that the Soviet Bloc is presently produci enough
aluminum for military and war-supporting industries ad household
uses plus some tor reserve purposes, That the Russians do not consider
the t produced in the Bloc to be suf'f'icient is Indicated by legal
and illegal purchases of aluminum from the Vest, by reported restrictious
on uses and shortages in the .Bloc, and by the tr dous expansion which
is planned for the aluminum Industry is the Bloc,
Enough technical kno'iedge excd raj mrateria1s are available for any
expansion desired. It is believed, ho ever,. that any great expansion
would cause a strain on the present Soviet Bloc economy
fte anticipated aluminum industry expansion in the :ate Uite
countries indicates that the JTSSR intends that the Satellites become
independent of the USSR insofar as al.zmimm production, is concerned,
Production of aluminum in the Satellites will not be particu.Ierl.y
cheap or efficient but will, relieve the Soviet economy of the strain
of producing the metal
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S.E-4-RE.4
Se USSR has rapidly &ww to the use of H tr ge riea bauxites., and
it i.s believed that lacy now supplies an mount of bauxite equal
to about half of the total Euxopean Lioc require rents. this develop-
ment weld tend to increase Soviet plant capacity and ieduce costa
because of the hi r grade of the Hungarian b ites. ".I USSR is
probably Butting back on its a rn ba=ite reining ew probably is
mini only the higber-grsae bauxite deposits
In the future,, with de to nt of large hydroelectric projects,,
the cost of alunimin produt tion in the US,Sli and its Grain on the
general economy vriU be considerably reduced.
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APP 3 X A
MmODOLOS Y
The eatinatee of availability ar production of primary and
aeconda3:y sib is the Soviet Bloc we bused on the review
of bu dredo of sources and a plat-by-plant survey of the Soviet
and European Satellite a]=ln= plants. More information is
ev ileble on the Satellite than the Soviet p].entsr. and tbus
the estimates for the former are considered more firm or are
accurate within a naarrov margin of error. Consw tion estimates
for the Bloc are less firm than production estimates because of
the lack of positive data on USSR consumption later than 1934,
They are believed., hotrever, to be satisfactory.
3 .,i4
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AFDC B
GAPS IN lit
Reasonably accurate information is mailable on soumes and
reserves of. alb ore in the Soviet Bloc- The largest ,gaps
are a nformation concerning accurate figs on torrent output,
inputs, con>aumption, espscity, as . the degree of aomp1etion of
the expansion program of the a1wmintxm meuet'ecctttriug ialuotz7-
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AM MIX C
ICES AM MAMMON (W SAS
1. Evaluation of Sources.
Reports of the Department of State,, C X, axA other govern nt
sgea ies ate considered to be the rust valuable sources. Ilan these
reports cxe concurred ,pith bat was actually seen by a U$ observer,
hey are considered to be fcatual-1y accurate
Detectors' reports we considered to be next in importance to the
US Gavernment egeza lea' reports and a step above reports of Informants.
Care must be taken, hoorever, to consider the background of the defector
In emoting the report.
Informants' reports are of variable reliability and =at be
eom re with other sources of information. The 1aor a' reports
cited in this report, homer, are believed to be fairly reliable.
Prisoner-of-war reports are valuable only when a great matiy are
afailable on a given pisut, locality, or subject. Ulithout supporting
evidence of e number of prisoner-of-war repo'.-As or of other
corroborating information,, this type of report is of little value.
Soviet and Satellite press reports can be used only as a general
background information and awe not considered of value as basic source
data,
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2. Sources.
Evaluation, follo4Witg the classification entry and designated
"Ev*l.," have the following Bi uificance:
A - Completely reliable
- Usually reliable
C - Fairly reliable
D - Not usually reliable
E - 1 of reliable
F - Cannot be judged
1 - Confirmed by other atwrces
2 - Probably true
3 - Possibly true
4 - Doubtful
- Probably false
6 - cannot be judged
1. T.G. Pearson, "The A1uanir m Industry," Chemistry and Indust, ray
Iftgxazine, London, 17 Nov 1951. p. 288. Ev'axl.. RR-1,
2 Fiat incl. Report 989, Alumina Production in German Office
of Military Government for Germany.. Department o Comr roe,,
13 Nov 191+6. u. Eval. RR-2.
3. Pearson, op. cit .
4. Departrs~nt of .xiterior, Bureau of Mines, Minerals Yearbook,
25X1A
5.
6. Fiat Final Report 989.
7. Wilhelm FAde and Hens Ginsberg, 'fonerde and Aluminium, "Part 1,
ALumina, ao-. The Digestion Processes for ites, 1. The
Raw Materials," Western Cerny, 1951. Fiat Final Report 524.
?or1u2=0-a of A s3zp Office of Military Government for
Germany, Department of Conumercce, 25 J~ia 1946. U. Eval. RR-2.
1923, Washington, 1945. U U.
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25X1A2g
25X1A2g
8. Iavaer 10.35-584, The Alvmi im mmgtry. Photo IndustriAl
Study No. 4, Feb 1945. R. .. ea,
9-
CXA ?$ 133, 31 Mar 1948, The $atural Resources of the Kota
Peniumziat, tr+~aelatian From 50 iaratioa o the (belin Inet.,
18.
Cain!, W.C. Alum American Association of Railroodls'.Waa73ington, ., 19146. ~. Erb.. RR-2.
Ibid.
t -D.partment Pamphlet, No. 31.13, The Light Metals Ind ry
in German r, " Milit,az3r Government tti .e r War Department, 1945.
U. L%Val a RR-4.
} b a t h a2g2Et o f t tale Statistics in J btu. 13,
A p r 1 ; No. 1 5,, en 1951; No. 1 7., ftl 1951; No. 18, Aug 1931.
V. E`3.? BR-2 o
fraer 10..3 ? 84
25X1A8a ~0201
,
25X1 X7999/0921 ,
22.
23.
25X1A2g 24-~
2?,
26~
2?-
25X1A2g 28..
29.
30.
31.
25X1A2g 33,
CTA FDB 133,
CXA FD8 Report No.. U3-382/ 19, St r aud Description of the Mineral
Resources of the Zola Peninsea]a 17 Aug 1949. S. iraJ.. ,
CrA PM rigs rbid:.
1"stimate.
US 26, Cbi ter VI, Section 63, C, Eva7., HR-3-
Fifth Five Year P2w, r York Times: 23 Aug IM '3 U. Ev&L. RR-1,
terior, 8uretaut Of Mines, Yo1. 2, May 1945. V. Ev*1. RR-2
CIA Estimate .
Mineral. Resources of Hiwgaxy, Foreign Minerals Survey,,Derpt., of
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25X1A2g
=25X1A2g
25X1A
34,
35-
.36.
371.
38.
39 9-
4Qa
41.
42 Ibid.
43, ' M.
44. NIX.
~~t
46
.
47.
1.8.
53. Dept. of Interior, bxream of Mines, Minerals Yearbook 19 e9, 1951. V.
52 %, CIAO
Estima e .
3 9 5 1 . 19 Sew Fork, 1 Mar 1952. U.
`
.1950, Dept: of i.n prior, 3aresu of Mines. U.
51, Imterim Coordinating Committee for Internationa3.Cc?modity
Arrangements,, United W tiona, Review of I terrationa1 Qoa?odi.
49, - CaLlaul tted.. from daft a Miners e !oavb~ ok, 19&9,, Dept. at Iuter. ,
7 eu of Mtneas 3.951.
50. Calculated from data in "Al"a1n ," preprint from Minerals Yearbook,
,540 Reviov of 8easic Data Sheet on A]. r o 2 0 Memo dum
or cbeirmano Defense t?ous s 31 t 1951. S. Ey-ai. HR-2-
55. CIA Estimte.
55 a Dept. of Commerce, CPT, Eamcopean Diviaihms, 1ntrr tonal List Items
57.'
58.
59,
60.
28-
RE-C-R?E-T
for the Perio195L . Erra1 a 1 R-
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 Approved For Release 1999/ 02 : C - 701093A000300050003-8
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