THE SHIPBUILDING COMPONENT INDUSTRY IN EAST GERMANY

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CIA-RDP79R01141A000100010001-7
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December 23, 2016
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May 20, 2013
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1
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February 15, 1952
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REPORT
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Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 t.,k.rr I s. SECRET THE SHIPBUILDING COMPONENT INDUSTRY IN EAST GERMANY CIA/RR 1 15 February 1952 CENTRAL INTELLIGENCE AGENCY SECRET 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 WARNING This material contains information affecting the national defense of the United States within the meaning of the espionage laws, Title 18, USC, Secs. 793 and 794, the trans- mission or revelation of which in any manner to an unauthorized person is prohibited by law. ? Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 S-E-C-R-E-T DISSWINATION NOTICE 1. This copy of this publication is for the information and use of the recipient designated on the front cover and of individuals under the jurisdiction of the recipientis office who require the information for the performance of their official duties. Further dissemination elsewhere in the department to other offices which require the informa- tion for the performance of official duties may be authorized by the following: a. Special Assistant to the Secretary of State for Intelligence, for the Department of State b. Assistant Chief of Staff, G-2, for the Department of the Army c. Director of Naval Intelligence, for the Department of the Navy d. Director of Intelligence, USAF, for the Department of the Air Force e. Deputy Director for Inteiligence, Joint Staff, for the Joint Staff f. Assistant Director for Collection and Dissemination, CIA, for any other Department or Agency 2. This copy may be either retained or destroyed by burning in accordance with applicable security regulations or returned to the Central Intelligence Agency by arrangement with the Office of Collection and Dissemination, CIA. DISTRIBUTION: Department of State Department of the Army Department of the Navy Department of the Air Force Joint Chiefs of Staff National Security Resources Board Research and Development Board Munitions Board Economic Intelligence Committee Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 a-z-a-a-Frz CENTRAL INTELLIGENCE AGENCY Office of Research and Reports THE SHIPBUILDING COMPONENT INDUSTRY ' IN EAST GERMANY CIA/PR. 1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 27E-Q-B71-1 CONTENTS Summary and Conclusions I. Introduction ael 1 2 1. General Description of the Industry 2 2. Importance of the Industry 2 3. Organization and Operational Procedures 3 4. Technology 3 II. Production of Components and Parts 4 1. Location and Capacity of Facilities 4 2. Output 4 a. Diesel Engines 4 b. Marine Electrical Equipment 5 c. Plate and Structural Steels 5 d. Nautical Instruments 7 e. Submarine Components 7 III. Input Requirements 8 1. Materials 8 2. Manpower 9 3. Equipment 9 4. Power 10 5. Construction 10 6. Parts 10 IV. Distribution of Output 11 1. Domestic Requirements 11 2. Foreign Requirements 11 3. Stockpiling 12 V. Limitations and Vulnerabilities 12 i?( 1. Limitations 12 2. Vulnerabilities 12 g7K-aHE7E-I Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Appendixes Appendix A. Locations, Installations, and Products or Activities of the Shipbuilding Component Industry in East Germany Pa= 50X1 13 Figure 1. Figure 2. Illustrations Tentative Chart of Control Channels for Ship- building and Related Industries in East Germany . Germany: Soviet Zone Ship Construction Facili- ties (Map) a7E-2-E7E!-I Following Paae 3 4 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 S-E-C-E-E-T THE SHIPBUILDING COMPONENT INDUSTRY IN EAST GERMANY* 5ummarv and Conclusions By mid-1951, East German production facilities were adequate for the production of components for fishing craft construction, but there was a severe shortage of materials. Although shipbuilding component production in East Germany is largely a secondary endeavor of plants primarily engaged in other activities, the shipbuilding component industry has an important place in the economy of East Germany. Capacity for production of ship- building components is sufficient to support a shipbuilding effort of 700 light craft annually, or about twice the present production. Preliminary plans for steel consumption by the industry, including ship plate, for the years 1951-55 will require 5 percent of planned annual steel output. The advanced stage of centralized control and planning already exist- ing in the industry lends itself to immediate conversion to a war economy. The design of the ships on which the various components are used has been in accordance with the principle of ready adaptibility to naval usage. The submarine construction program of the USSR is aided by East German production of needlebearings, periscopes, and valves. East German naval designers are contributing to Soviet gas-turbine and torpedo experimenta- tion. The Soviet economic potential is increased by East German contri- butions of communication equipment, nautical instruments, and other com- ponents for merchant ship construction in Polish and Soviet yards. East Germany plays a vital role in the procurement for the Soviet Bloc of diesel engines, ground tackle, electronic equipment, and other critical items from the West. Western export restrictions contributed to the severe shortage of materials which forced drastic curtailment of production of shipbuilding components in East Germany in 1951. Stricter enforcement of export con- trols by the West German government is more feasible now because of the ex- panded market in itsown shipyards. More effective measures against the flow of production equipment and raw materials would necessitate either large-scale importing of shipbuilding components from the Soviet Bloc or further curtailment of the shipbuilding program. * Including ship plate, structural steel, and naval ordnance. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 S-E-C-R-E-T I. Introduction. 1. General Description of the Industry. Shipbuilding as currently conducted in East Germany is largely an assembly-type operation by shipyards which require a large number of fin- ished components from outside plants. These yards have undertaken a pro- gram which includes series production of fishing vessels. They also sal- vage and repair merchant ships up to 22,000 gross registered tons (GRT). Construction of cargo vessels up to 8,000 GRT will begin in 1952. To meet the expanding requirements of the industry, a central pur- chasing commission was established in 1948. With access to former sources of supply in West Germany no longer assured, attention has turned to the development of a self-sufficient shipbuilding component industry in East Germany. Emphasis has been on the establishment of a workable system of subcontracting with firms in related industries rather than on the con- struction and development of new plants. Shipbuilding components have be- come important products of firms in the East German engineering industry. 2. Importance of the Industry. Goals of the East German shipbuilding and shipbuilding component production programs are to provide East Germany with a merchant marine and fishing fleet of its own and to augment the merchant and fishing fleet of the USSR through reparations and other agreements. In addition to the increase in the economic potential of both coun- tries which such a program offers, their war potential is increased because of the convertibility of these ships for use as naval vessels and auxiliaries. As the supporting element to the East German shipbuilding effort, the ship- building component industry assumes a vital role in the over-all planning of the Soviet Bloc. Of additional significance is the use of East German factories to supply critical components to shipyards in the Soviet Orbit. Some idea of the importance which shipbuilding component production has assumed within East Germany can be gained by a comparison with the US. Normal peacetime* consumption of steel for shipbuilding averaged 1.3 percent of total finished steel production in the US. In 1951, steel consumed in East Germany for production of ships' machinery alone amounted to 1 percent of production, and total yearly consumption by the shipbuilding industry, including plate and structural steel, is expected to average 5 percent of the steel produced during the current Five Year Plan (1951-55). * 1939 is considered the last normal prewar year. - 2 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 ? S ?E?C 3. Organization and Operational Procedures. The East German Ministry of Machine Building, through its Main Administration for Shipbuilding (HVS), supervises shipbuilding operations in East Germany. This administration is subdivided into the Federation of Nationalized Yards (VVW) and the High Sea Shipbuilding Bureau (HSSB) which exercise administrative control over the shipyards and over a few component plants. The vast majority of plants producing components used in ship- building, however, belong to subdivisions of other Main Administrations of the Ministry of Machine Building. For example, sonic depth finders are produced at a factory in Koelleda which belongs to the Radio and Telecommunication (RFT) section of the Main Administration for Electro- technical Construction. Plants belonging to subdivisions of the Ministry of Heavy Industry and to the Ministry of Light Industry also manufacture components. Procurement orders for components are channeled upwards and distri- buted on higher levels where representatives of various administrative of- fices place orders with appropriate factories. Despite inevitable delays necessitated by this procedure, detailed operational liaison at all stages of production and planning has been effective in working out a satisfactory flow of components. The tentative relationship of the High Sea Shipbuilding Bureau to its own shipyards and component plants and to the administrative organization which directs production in the complex web of East German industrial installations is indicated in the chart which follows. (See Fig. 1.) 4. Technology. No significant improvements in technology are known to be used in East German plants producing shipbuilding components. Series assembly of the larger components has standardized production types and permitted ful- fillment of orders in shorter working periods. Substitution of available materials for those in short supply has caused the quality of production to vary considerably. For example, when special steels needed for moving parts in diesel engines are not on hand, steel with improper alloying elements sometimes is used. While such substitutions inevitably lead to higher re- jection rates, poor operating efficiency, and increased repair costs, the ability to make such substitutions has been largely responsible for the quantitative achievements of the component industry. ? 3 ? .oe Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 S-E-c-a-E-T II. iroduction of Components and Parts. 1. Location and Capacity of Facilities. Over 100 factories have been identified in East Germany as pro- ducers of components and parts used in the shipbuilding industry. (For the location of the majority of these factories, see Fig. 2, and for a detailed list, see Appendix A.) The wide dispersion of plants throughout East Germany is illustrative of the effectiveness of the operational liaison between the shipbuilding administration and other branches of Industry. The more important plants, those producing the major proportion of propulsion machinery, are the Wolff plants at Magdeburg (Buckau) and Magdeburg (Salbke), the Diesel Motor Works at Rostock, the Geraetbau at Schoenebeck, and the Kjellborg plant at Finsterwalde. Capacity for greater output exists in nearly all plants because production of marine components represents only a small percentage of total plant utilization. Reasonable limits on over-all capacity can be estimated, however, by the ability of the major plants to produce main and auxiliary engines without serious dislocation of other activities. An estimate based on peak monthly production in 1950 and 1951 of 300-horsepower diesels and supporting propulsion equipment indicates that the industry is capable of supplying the components needed for 700 fishing vessels, which would be about twice the present actual production in East Germany. 2. OutPut. Production in the East German shipbuilding component plants in 1951 was geared to the short-term requirements of the domestic building program and to the fulfillment of a few export orders. Material allocations are made in strict accordance with the minimum requirements necessary to complete the shipbuilding production schedules set forth in the state Plan. There is almost no output above actual targets. (For the products produced by each plant, see Appendix A.) a. Diesel Engines. Noteworthy in the production of marine diesels in 1951 was the assembly by hand of the first 1,000-horsepower diesels at Rostock and the production of the 500-horsepower diesels required for the new seagoing trawlers. These engines were turned out at Rostock, at Goerlitz, and at the Wolff plants, the latter of which also series-produced for the first time 200-horsepower diesels needed for the cutter-building program. Additional cutter engines were imported from West Germany. - 4 - Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 FIGURE 1 TENTATIVE CHART OF CONTROL CHANNELS FOR SHIPBUILDING AND RELATED INDUSTRIES IN EAST GERMANY USSR MINISTRY OF THE NAVY USSR MINISTRY OF FOREIGN AFFAIRS SECRET SOVIET CONTROL COMMISSION Soviet channels of control through planning, supervision, and acceptance testing East German channels of administration ? ?? Component procurement channel for plant not under administrative control of shipbuild- ing agencies GR1129 CIA, 1-52 SOVIET DIPLOMATIC MISSION, BERLIN GERMAN DEMOCRATIC REPUBLICJ REPARATIONS OFFICE USSR MINISTRY OF SHIPBUILDING MINISTRY OF HEAVY INDUSTRY MINISTRY OF MACHINE BUILDING MINISTRY OF LIGHT INDUSTRY MAIN ADMINISTRATION FOR SHIPBUILDING (HVS) HFEDERATION OF NATIONALIZED YARDS (VVW) SOVIET CONSTRUCTION SUPERVISING COMMITTEE HIGH SEA SHIPBUILDING BUREAU (HSSB) STATE PLANNING COMMISSION MAIN ADMINISTRATION FOR ELECTROTECHNICAL CONSTRUCTION RADIO AND TELECOMMUNICATION (RFT) SHIPYARD Wismar WARNOW SHIPYARD Warnemiinde DIESEL MOTOR WORKS Rostock SECRET SCREW FACTORY Finsterwalde SHIP OUTFITTING Rostock Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 ELECTRIC EQUIPMENT PLANT Ileda Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 ? ? crrprr PROVISIONAL 50X1 54 53 52 10 11 LN4 MAR 12 13 14 BALTIC Sassnitz KIEL Stralsun Damgarten arnemunde Gehlsdorr Rostock Greifswald Wolgast Liibeck. *./0 GrevesmOrilen .1. SCHWERIN ? HAMBURG ???-??? ? Boizen burg Gottingen ? 51 /,???-?,;.) 15 SEA . ? ' Sedom ' Ueckennunde ? 2r< Torgelow? Grabow '7 ? c Magdeburg r- ? --- ? Buckau: Salbke. C.: ?Osterwieck 5 4, Halberstadt ? ,CS?.- _ rndorf ?DI Vacha ? -2, 50 10 .Sondershausen Erfurt .Gotha ? ? Rudisleben Bern burg .K011eda Wittenherge ennigsdorf othensee den burg Sch nebeck K.001 ? Dessau randenburg elto Rosslau Wittenberg .S` ??????$ Bitterfeld. Aftee?, .Hohenthurm Ammendorf ; Leipzig le Weissenfels Penig Wurzen Riesa Hohenzollern Kan! Eberswalde Thelmsruh eissensee Marzahn BERLIN berschoneweide 017:77.7'" se) Wilda u ? POLISH Openick ankfurt an e Oder Da bendorf F0045, Meissen-?? ? ? ,? ?,? Coswig '.Radeburg .Finsterwalde ?2042, Furstenberg AD M. t qe,0 Bautzen Garlitz Cold Rz DRESDENFt;?0, Niedersedlitz ? eidenau Freiberg :4,....- Pirna Brand-Erbisdorf. el?. . i i ? I? ?Chemnitz ? .../' \ Lahgenau ? Wasungen .Suhl ?Unterwellenborn LOV E110-A .Netzschka Aue e#j% emq18's An nab.eav .Plauen GERMANY: SOVIET ZONE f .."?? 0 ? SHIP CONSTRUCTION FACILITIES L. 0 Shipyard Location ? Ship Component Factory Location . Zwickau 1 ?%, Narnberg 11 Augsburg 12 9 13 STATUTE MILES 9, 2.9 40 60 KILOMETERS 14 60 15 54 53 52 51 50,XI 12041 CIA. 12-51 FIGURE 2 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 S-E-C-R7E-T The drive for domestic self-sufficiency in engine production is continuing to make progress. The standard 300- and 100-horsepower diesels are already produced in quantities sufficient to satisfy domestic needs. Given sufficient materials, production of 200-, 500-, and 1,000-horsepower marine diesels also should meet planned requirements in 1952. The general shortage of diesels in the other Soviet Bloc countries, however, probably will mean continued importing of some marine engines from West Germany for reexport. (For production data of marine propulsion units at various factories in East Germany, see the table on p. 6.) b. Marine Electrical Eauinment. Marine electrical equipment is produced in East Germany chief- ly at three plants, the RFT Central Laboratory at Berlin (Koepenick), RFT Koelleda, and RFT Dabendorf. At Koelleda, 60 sonic depth finders were pro- duced in 1950; at Dabendorf, 250 patrol boat transmitter sets (100-watt) were manufactured in the same year. Other production, for which totals are not available, includes 20-watt ship-to-ship radio-telephone equipment for fishing vessels and a wide range of ships' electrical equipment and sea- rescue signal apparatus. East Germany is expected to become increasingly important in 1952 as a producer of marine transmitting and receiving sets. Included in production plans are 100-watt medium-wave transmitters, 100-watt short- wave transmitters, 1-kilowatt short-wave transmitters, and very-low-fre- quency receivers. Some of these sets reportedly are destined for use in Bloc naval vessels, but as yet neither shipment to the USSR nor installa- tion of these sets on visiting Soviet ships has been reported. c. Plate and Structural Steels. The principal producers of plate and sheet steels for shipbuild- ing in East Germany are the Halbzeugwerke at Aue, the Maximilianhuette at Unterwellenborn, and the Kirchmoeser Rolling Mill at Brandenburg (Havel). Structural pieces also are produced at the steel mills at Riese and Hennigs- dorf. These plants have the ability to meet current requirements but will require new equipment in order to turn out the larger plate sections needed for the ocean-going vessels to be built in the 1952-55 period. Expansion of production facilities at these installations and the construction of new mills, despite the lack of sufficient materials to maintain present plants at full capacity, are indicative of the East German government's determination to push through its shipbuilding program regard- less of the major supply problems involved. - 5 - S-Eta7a7E-T Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 S-E-C-R-E-T ?Production of Marine Propulsion Units and Auxiliary Equipment in East Germany 2./ Factory Town TYD8 of Unit Maximum Known Production Rate Period Estimated 1951 Production Comment Wolff Magdeburg Diesel, 100 Horsepower 40 per Month Nov 1950 400 Auxiliary for loggers, seiners (Buckau- Diesel, 200 Horsepower 68 per Year Year ,1951 68 -Main cutter engine Salbke) Diesel, 300 Horsepower 65 per Month Nov 1950 450 Main logger, seiner engine Diesel, 500 Horsepower 1 per Month 4th Quarter 1951 3 Main engine for trawlers Diesel Rostock Diesel, 100 Horsepower 48 per Year Year 1950 200 Auxiliary for loggers, seiners Motor Diesel, 500 Horsepower 1 per Month 4th Quarter 1951 3 First of 55 engines planned by 1955 Works Diesel, 1,000 Horsepower 2 per Year Year 1951 2 First of 63 engines planned by 1955 Diesel, 2,000 Horsepower In Design Year 1951 0 55 engines planned by 1955 Wumag Goerlitz Diesel, 500 Horsepower 1 per Month 4th Quarter 1951 3 For 600 GRT trawlers Diesel, 200 Horsepower N.A. Oct 1951 N.A. Main cutter engines Horch Chemnitz Diesel, 30 Horsepower 5 per Quarter Year 1951 20W Automotive and tractor diesels Diesel, 45 Horsepower 3 per Quarter 1st Quarter 1951 9W adapted for small craft made in Diesel, 120 Horsepower 3 per Quarter 1st Quarter 1951 9W the Berlin Yacht Yard Geraetbau Schoenebeck Diesel Generators 64 per Quarter 2/ 4th Quarter 1950 256 For main engines, loggers, seiners Electric Motors, 50 Horsepower 20 per Month 2/ Year 1951 240 Auxiliary engine for light, heat Kjellborg Finsterwalde DC Motors and Generators, 3 to 70 Kilowatts 1,600 per Year 2/ 1950 1,600 Standard electric auxiliaries Current Regulators 250 per Year 2/ 1950 250 shipped as needed by shipyards and other industries Elbtalwerk Heidenau AC Motors 0.25 to 1 Kilowatt 1,000 per Year 2/ 1950 1,000 Standard electric motors for cranes & 1 to 10 Kilowatts 5,000 per Year 2/ 1950 5,000 winches allocated in part to ship- 10 to 50 Kilowatts 1,800 per Year 9./ 1950 1,8CO building a. The electric engine repair bau in Halberstadt is reported additional source for electric b. Allocation for marine use f c. General production of types plants in Dorndorf and Osterwieck are used by the shipyards for rebuilding small electric motors. The Schwermaschin- to have commenced production of 200-horsepower marine diesels. The Sachsenwerk (SAG) at Niedersedlitz is an important, motors, generators up to 250 kilowatts, and transformers. rom general production. known to be used in East German shipbuilding. - 6 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 S-E-C-R-E-T d. Nautical Instruments. Production of nautical instruments in East Germany is centered at the Askaniawerke in Berlin (Teltow). Manufactured at this plant are ships' compasses, patent logs, automatic tide and current gauges, coastal water thermometers, and metering devices and gauges for shipboard machinery. Although a wide variety of instruments is produced here, there is consid- erable dependence on West Germany for small parts. The Askania plant sup- plies domestic shipyards and is an important supplier of nautical instru- ments to the USSR. e. Submarine Components. Of special interest is the role of East Germany as a potential source of parts used in submarine production. Immediately after World War II a series of orders for odd components was placed at various plants. These parts probably were used to outfit or to complete captured German vessels. In 1948 and in 1949 a few additional orders reportedly were re- ceived for submarine components, and more recently there have been numerous reports mentioning export orders for the USSR. The table below is based on the more reliable of these references: Production of Component Parts for Submarines in East Germany Factory 1,ocation Components Quantity Production Period Maschinen- fabrik Penig Transmissions 2 1949 and 1950 Maschinen- fabrik Goerlitz Centrifugal Pumps N.A. 1950 Chemical Rudisleben Valves 300 1950 Factory DKF 2/ Leipzig Needle- bearings 3,500,000 1950 and 1951 Zeiss Jena Periscopes h/ N.A. 1951 Simson Suhl Periscope N.A. 1951 Parts Remarks For experi- mental sub- marine Capacity, 00 litres per minute T-shaped; known production rate, 25 per month Includes bear- ings for tor- pedo boats Production be- gun in Aug 1951 For Zeiss-Jena; production be- gun in 1951 a. Deutsche Kugellagerfabrik (German ball-bearing factory). b. The recent order for periscopes at Zeiss-Jena is significant evidence of increased need for this component in the USSR. - 7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 III. Input Reauirements. 1. Materials. The principal material used in the production of ship components is steel. The requirements of steel in East Germany in 1951 for the manu- facture of ships' machinery and deck equipment for about 360 fishing vessels totalling 100,000 GRT are computed to be 16,000 metric tons of ingot steel. Plate and structural steel production will not require more than 25,000 metric tons of ingot steel during the same year. The comparatively low amount of steel used for plate and structural pieces is a result of sub- stitution of wood on the loggers and cutters. As production of such larger fishing vessels as trawlers and of merchant ships gets under way in 1952, the use of steel will increase because substitution of wood will be less feasible on these larger ships. Preliminary East German plans for annual consumption of steel by the shipbuilding industry during the Five Year Plan (1951-55) are known to be 95,000 metric tons of finished steel. Because there is a loss of at least 25 percent in the processing from raw to finished steel, an annual requirement of 126,000 metric tons of ingot steel can be estimated. This is about 5 percent of planned average annual production of ingot steel in the same period. In view of the severe material shortages and the recent downward revisions in the production schedule of merchant vessels, it seems unlikely that actual shipbuilding consumption will exceed 70,000 to 75,000 metric tons of ingot steel. Shipbuilding consumption should remain at approxi- mately 5 percent of actual production, however, because over-all steel out- put in East Germany will itself probably fall below original plans. East German mills, with the help of limited imports of alloy steels from Czechoslovakia, have adequate facilities to meet the steel requirements of the component plants and shipyards, but they are not able to maintain capacity output, because of shortages of iron ore and coke. The severe shortages of ores will make the East German mills directly dependent on ful- fillment of large-scale imports planned from Krivoi Rog, USSR. Nonferrous metals, chiefly copper alloys, also are used in the manu- facture of shipbuilding components. The shortage of nonferrous metals in East Germany, however, is acute and has resulted in intensive scrap salvag- ing and substitution wherever possible. Tubing, for example, is sometimes made of galvanized steel instead of copper. Domestic suppliers such as Kupfer Messing in Hettstedt were able to provide only 44 metric tons of the 132 metric tons of brass required in 1950. Requirements of bronze for pro- pellers, while small, are being met with great difficulty. Use of aluminum on fishing vessels has been negligible. ? 8 ? Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 I. a7E-c-E7E-T Seasoned lumber is Obtained in quantity from West Germany and from Yugoslavia through Swiss intermediaries. Marine paint, also in short sup- ply, is produced at the paint factory in Berlin (Teltow). Additional paint is procured from the Netherlands. Rope-making materials are virtually unobtainable in East Germany. The entire supply is shipped by firms in Hamburg. These firms evade re- strictions against reexporting by false labeling. The Bastfaser plant in Annaberg converts manila, hemp, and sisal into halyards, cordage, rigging, and rope for the shipyards. 2. Manpower. It is believed that the total number of workers exclusively engaged in ship component production in the major plants in East Germany does not exceed 6,000.* There is a shortage of skilled labor and technical personnel in all segments of the industry, and the lack of mechanical engineers and draftsmen with experience in both machinery design and shipbuilding is especially acute. As a result, preventable flaws in operation of such com- ponents as net winches are not discovered until they are installed and in use. Training programs include apprentice shops in the component plants and courses in the Technical Institute at Rostock. The shipbuilding in- dustry also recruits skilled personnel from West Germany. This policy, how- ever, has had limited success. The controls over both unskilled and semi- skilled labor in East Germany are sufficient to give the labor force a high mobility and to allow management to shift workers from plant to plant. The shortage of skilled labor and professional personnel, however, is unlikely to be alleviated before the end of the current Five Year Plan (1951-55). 3. gauiment. By mid-1951, production equipment needed for construction of com- ponents for fishing craft in East Germany was adequate to meet the demands of the shipbuilding program. Widespread deficiencies exist, however, in the availability of production equipment needed for the new merchant marine building program. In particular, large machine tools such as crankshaft turning lathes for the 1,000-horsepower diesels are not readily available from machine tool plants, which have only recently recommended production of large special-purpose machine tools. * For statistical purposes, this total would ordinarily be included with statistics for heavy industry, light industry, or shipbuilding. - 9 - I-Ea-Q.-a-1-1 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Ship plate production has been limited to plates which are 5.5 meters long and 2 meters broad. Considerable retooling and some new equip- ment will be needed to produce the larger plates required. Component plants are known to be expecting delivery of some of these machine tools from West Germany to set up production lines for the new building program. 4. Power. It is estimated on the basis of comparable US experience that thb percentage of electric power cost to total manufacturing costs would be the lowest of all input factors. In the US, power inputs presently account for approximately one- half of 1 percent of the production cost of electrical equipment; seven- tenths of 1 percent of the manufacturing cost of engines, turbines, and similar machinery; about four-tenths of 1 percent of the cost of sheet metal production; and about one-half of 1 percent of structural steel pro- duction cost. Power plants by mid-1951 had recovered very largely from the effects of postwar dismantlings in East Germany. No plants producing marine com- ponents are known to be limited by a lack of electric or other power. 5. Construction. The expenditure of DM 3.2 million (East) for reconstruction of the Diesel Motor Works in Rostock was authorized in 1950. The plant is now in production. There has been little other plant construction or expansion outside of the shipyards proper. Priorities for housing projects for workers, however, have been as- signed to areas adjacent to ship component plants in Finsterwalde and Rostock. Because of the shortages of construction materials in East Germany, assign- ment of priorities for such supplies is believed to be indicative of the determination of the East German government to ensure the success of the ship- building program. 6. Parts. East Germany in 1950 and 1951 was still dependent on West Germany for parts for certain nautical instruments, marine electronic equipment, ground tackle, pistons, crankshafts, and other diesel engine parts. The principal procurement agent for marine components and parts has been the Selbsthilfe Kieler Betrieb in Kiel. The trade of this firm with East Germany amounted to DM 3.5 million (West) in 1950. -10- Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 S-E-C-R-E-T The shipyards in East Germany are heavily dependent on West German firms for replacement parts for prewar marine engines still in use on in- land water and harbor craft. In addition, complete diesels are imported to augment production. The Maschinenfabrik Augsburg-Nuernburg was an important exporter of diesels in 1951. Other sources for diesels included Klockner, Humboldt and Deutz in Cologne, Maschinenbau in Kiel, and Bohn and Koehler in Kiel. Total value of marine engine exports from West Germany to East Germany may exceed DM 2 million (West) in 1951. There undoubtedly will be continued importing by East Germany dur- ing the current Five Year Plan (1951-55). The drive for self-sufficiency in marine component production has made steady progress, and increasing orientation of the entire shipbuilding industry toward the economy of the Soviet Bloc is discernible. Shipments of ship plate and structural steel were received in Rostock from the USSR in mid-1951. Continued shipments may be expected until production of large plate sections in East Germany is satisfactory. Parts for diesels and pumps occasionally have been shipped from Czechoslovakia, Bulgaria, and Hungary. In addition, the USSR has shipped critical parts needed for construction on 19 large Soviet merchant vessels (1,000 to 20,000 GRT) undergoing repairs in East German yards during 1951. The Soviets also supply parts to East German yards for repairs on Soviet naval vessels. IV. Distribution of Output. 1. Domestic Requirements. The requirements of each East German yard for components needed to fulfill its quota of ships determine production orders. In addition, there are a few orders filled specifically for shipment to other Soviet Bloc countries. With the exception of this latter category, domestic yards consume all production, and there is no exportable surplus. 2. Foreign Reauirements. Exports include 300-horsepower diesels produced by Wolff which are shipped in unknown quantities to Baltic ports in the USSR and in Poland for installation on fishing vessels built in those two countries. Production of 85 large marine boilers and 91 turbines, both for export to the USSR, also are included in production orders this year. The submarine components previously mentioned are shipped to the USSR. -11- Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 S-E-C-R-E-T Sporadic reports indicate that East German industrial facilities are utilized for the processing of parts for naval guns, but there is no evidence of sustained production of naval ordnance of any kind. Of signif- icance, however, is Soviet interest in East German experimental facilities. The Economic Technical Bureau (WTBG) in Berlin is known to have developed a new stabilizing device for torpedoes, and the Entwicklungsbuero (design office) in Dresden has conducted experiments in the development of new turbines adaptable for naval use. 3. Stockpiling. No stockpile of marine components is known to exist in East Germany. The export of 3.5 million needlebearings, however, is evidence of possible stockpiling of this component in the USSR. V. Limitations and Vulnerabilities. 1. Limitations. Limitations in the supplies of basic raw materials do not permit full utilization of shipbuilding component production facilities in East Germany without substantial importing. Production has been further cur- tailed by the shortage of skilled labor which necessitates the hiring of workers with a lower level of productivity. Another factor which decreases the value of East Germany as a supplier of needed components is the con- centration upon a few standard models for series production. Replacement units for models not currently manufactured are not readily available, and this entails long delays in repair work. 2. Vulnerabilities. Western export restrictions contributed to the severe material shortages which sharply curtailed activities in some East German shipbuilding component plants in 1951. Even stricter enforcement of controls by the West German government now is practicable because of alternative markets in the expanded West German shipbuilding industry. Curtailment of repair activ- ities subcontracted by East Germany to yards in Belgium and the Netherlands would severely impair East German salvage and repair programs because of the inability of East German plants to produce many of the nonstandard components needed. The flow of components to coastal shipyards is subject to disruption at two key points. Magdeburg, with several major plants, and Berlin; with a concentration of component plants, are both situated at intersections of principal railroads, waterways, and roadways used in the shipment of components. -12- S-B7C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 S?E?C?R?E-1 41, APPENDIX A* LOCATIONS, INSTALLATIONS, AND PRODUCTS OR ACTIVITIES OF THE SHIPBUILDING COMPONENT INDUSTRY IN EAST GERMANY Location Ammendorf Aue (Hammer) Bautzen Berlin Bernburg Bitterfeld Brand Erbisdorf Brandenburg (Havel) Chemnitz Colditz Dabendorf Dessau Dorndorf (Thuringia) Installation Wagenbau *Halbzeugwerke Drahtseilerwerk Andacht, Paul Co. Akku Fabrik *Askaniawerke Teltow Augustin Werke Berliner Stahlbau Bergman Borsig Heckert Klockner Eisenhandel Kabelwerk Oberspree Kabelwerk Koepenick Lackfabrik Teltow Osram Works Primus Trakteren Werke RFT Central Laboratory Transformer Works Wagner Laboratory WilheImsruhe Electric Equipment Plant *Armaturenwerk (SAG) 1/ Kombinat George Weingoldt Precision Instrument Plant Kirchmoeser Rolling Mill Hauboldt Mas chinenfabrik Niles Alfred Stortz Co. RFT Plant (VEB) h/ Maschinenfabrik (ABUS) g/ Repair Plant (yEM) a/ Product or Activity Metal-processing Ship Plate Cable Winch Drums Submarine Equipment Precision Instruments Engines, 800-horsepower Winch Frames Turbines Winches Metal Importer Marine Cable Marine Cable Marine Paint Incandescent Lamps Parts Made of Gun Metal Communication Equipment Transformers, Motors Voltage-control Devices Voltage-control Devices Precision Parts for Sub- marines Hydronalium Sheets Forgings, Stampings Naval Optics Plate Diesels Machine Tools Engines Radio-telephone Equipment Electromagnets Repairs for Electric Motors 4 Additions and corrections to the list of component plants are invited. a. b. C. d. Soviet-owned firm. People-owned plant. Mining And Heavy Industrial Equipment. Federation of Electrical Machine-building Plants. 50X1 ? 13 ? &I-27E7E71 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 S-E-C-a-E-I Location Installation Product or Activitv Dresden Eberswalde Erfurt Finsterwalde Freiberg (Saxony) Gagern Goerlitz Grevesmuehlen Halberstadt Halle Heidenau Hennigsdorf Hohenthurm Jena Koelleda Langenau Leipzig Agregat Brueckner Kanis *Ettwicklungsbuero (Design Office) Electric Motor Works Ludwig Karl Kruse Co. Schulze and Schulze Ardeltwerke Dietz Hagans Co. *J. Jahn RFT Erfurt *Henri Pels Kjellborg *Schraubenfabrik Hildebrandt Plant Repair Shop *Maschinenfabrik (VEB) Praezionsmaschinenfabrik Schwermaschinenbau *Hallesche Pumpenwerk Elbtalwerk *Electric Locomotive Plant *Stahl und Walzwerke Dampfkesselbau (VEB) *Zeiss RFT Plant (VEB) Plant Name Unknown Eger Works Energie und Kraft - maschinenbau Elektrostahlgusswerk *Deutscher Kugellager - fabrik Meier and Weichelt Schuman and Co. -14- Small Engines Turbines Turbine Experimentation D.C. Motors Winches Starting Gear Ship Airconditioning Units Forgings, Turbines, Propellers Boilers Engine Models U-boat Ballast Pumps Batteries, Radar Castings for Submarines, Naval Guns Electric Motors, Generators, Welding Electrodes Nuts, Bolts, Rivets Precision Instruments for Submarines, Sextants Small Craft Parts Gas Turbine Generators, Diesels Precision Parts Diesels Pumps Electric Motors Turbine Parts, Plate Parts for Submarines, Naval Ordnance Boilers, Fittings Precision Parts, Industrial Diamonds for Submarines, Per Echo Sounding Equipment 6-kilowatt Motors Compressor Parts, Trans- missions Diesels Gas Turbine Parts Needlebearings for Sub- marine and Torpedo Boats Cable Blocks, Propellers Submarine Valves Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Location Magdeburg (Buckau) Magdeburg (Salbke) Magdeburg Marzahn Meissen Netztschkau Niedersedlitz Osterwieck Penig Firma Plaue (Havel) Radeburg Riesa Rosslau Rostock Rudisleben Schoenebeck Schwerin Suhl (Thuringia) Torgelow Ueckermuende Unterwellenborn Vacha Waren 27E72-E-E-1 Installation *Wolff *Wolff 'Krupp-Gruson *Polte *Schaeffer and Budenburg Hasse and Wrode Meissen Co. Nema (SAG) Sachsenwerk Repair Plant (VEB) Peniger Maschinenfabrik Control Apparatus Plant Shipyard Lathe Shop Sachsenwerke Riesa Steel Mill Elbwerke *Dieselmotorenwerke Maschinen und Kuhlschrank Schiffsausstattungswerk Elektro (VEB) Industriewerke Chemische-Maschinen- fabrik (SAG) Geraetbau Plant at 87 Goethestrasse Industriewerke Simson (SAG) Giesserei Maschinenfabrik Laternwerk Stahlgiesserei Maximilianhuette Cable Plant Waren Mueritz Foundry -15- Product or Activity Winches, Gear Diesels, Boilers Turbine Rotors, Ground Tackle Valves, Gauges, Submarine Parts Submarine Parts, Signal Whistles Engine Parts Friction Discs Propellers, Pontoons Electric Motors, Transformers, Generators Electric Engine Repairs Cable Winches, Transmissions for Submarines Electric Switches Anchor Winches Radar Plate, Angle Irons, Piping Net Winches, Capstans Diesel Engines, Windlasses Refigeration Machinery Outfitting, Ship Interiors Motor Generators, Electric Motors Winches Valves for U-boats Diesel Generators, Electric Motors Electric Motors, Telegraphs Net Winches Periscope Parts Forgings, Castings, Diesel Parts, Winches, Propellers Signal Whistles Ship Lanterns, Patent Logs Propellers Plate, Piston Rods Rubber-covered Cable Propellers, Porthole Fittings, Steering Gear Sockets, Diesel Parts Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Location Warnemuende Weissenfels Wismar Wurzen Zwickau S-E-C-R-E-T Installation Plant at 3 Poststrasse Industrial Hardware Plant Wagenfabrik Cable Works Horch dditional Locations Installations Product or Activity Installation of Radios Anchor Chain Naval Instruments Wire Cable Diesels and Product Location Annaberg (Erzge- birge) Berlin Berlin (Grunau) Berlin (Johannisthal) Berlin (Johannisthal) Boizenburg Falkenstein (Sachsen) Gotha Grabow Leipzig Plauen Rechlin Sonderhausen (Thuringia) Wildau Wismar Installation Bastfaser Gaselan (yEB) Clarsten Co. Kaltmaschinenbau Motorenwerke Plattenfabrik Webereien Maschinenfabrik Geraetbau Radio-signal Plant Gluehlampenwerke Staatswerft Zweigwerk Heavy Machine Works Stahlbau Product or Activity Rope, Cordage, Nettings Buoys, Beacons Tackle, Sail Refrigeration Units for Loggers Two and 4-horsepower Out- board Motors Plate, Hull Sections Signal Flags Reverse Gears Bronze Parts Shutter? Signal Apparatus Clocks, Chronometers Transmission Gears Cylinderheads, Nozzleholders Ship Plate Press Anchors It is possible that the following installations also processing parts for submarines: Raguhn Wasungen Wittenberg Wittenberge Heerbrandt Jaeger Cigar Factory Former Textile Plant (name unknown) Railroad Repair Works -16- S-E-C-E-E-T may be making or Interior Equipment U-boat Parts U-boat Parts U-boat Engine Repairs Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 R Next 1 Page(s) In Document Denied Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7 SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/05/20: CIA-RDP79R01141A000100010001-7