THE SHIPBUILDING INDUSTRY IN EAST GERMANY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R01141A000400030001-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 65
• Document Creation Date: December 23, 2016
• Document Release Date: May 28, 2013
• Sequence Number: 1
• Publication Date: October 1, 1954
• Content Type: REPORT

E?
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
SECRET
ECONOMIC INTELLIGENCE REPORT
THE SHIPBUILDING INDUSTRY IN
EAST GERMANY
CIA/RR 42
1 October 1954
CENTRAL INTELLIGENCE AGENCY
OFFICE OF RESEARCH AND REPORTS
50X1
50X1
50X1
SECRET
I Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
11
Al
11!
IP
W
16
tit
WARNING 4
This material contains information affecting 'ID
,
the National Defense of the United States goil
within the meaning of the espionage laws, 'P
Title 18, USC, Secs. 793 and 794, the trans- r'l
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
1
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
ECONOMIC INTELLIGENCE REPORT
THE SHIPBUILDING INDUSTRY IN EAST GERMANY
CIA/RR 42
(ORE Project 35.2)42)
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
S-E-C-R-E-T
50X1
50X1
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
CONTENTS
Page
Summary
1
I. Introduction
2
A. History of the Industry
2
B. Importance of the Industry
3
C. Organization of the Industry
11.6
II. Facilities
A. Types of Facilities
6
B. Location of Plants
8
III.
Technology and Training
114.
A.
General
14
B.
Research
15
C.
Ship Design
15
D.
Engineering Schools,
16
IV.
Production
17
A.
Present and Estimated Future
17
1. General
17
2. Five Year Plan, 1951-55
17
3. Revised Program, 1953
22
B.
Maximum Capability
23
C.
Subcontracting Program
24
D.
Plant Expansion
25
1. Past and Present Expansion
25
2. Planned Expansion
27
V.
Input Requirements
28
A. Raw Materials
28
- -
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
Page
1. Material Consumption
2. Material Purchasing and Storing
3. Material Suppliers
4, Quality of Material
5. Material Shortages
28
30
30
32
32
B. Finished Materials
32
C. Manpower
33
D. Electric Power
34
E. Transportation . ... ? OOOOOO
35
F. Financial Inputs
36
1. Capital Investments
36
2, Ship Values
37
VI. Limitations and Vulnerabilities . . . .
37
A. Limitations
37
B. Vulnerabilities
38
Appendixes
Appendix A. General Description of the Shipbuilding
Industry
41
Appendix B. Methodology
51
Tables
1. Vessels in the Inland Waterway System of East Germany,
1952
2. Shipyards in East Germany
- iv -
S-E-C-R-E-T
9
50X1
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
' Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
SE-C-R-E-T
Page
3. Shipbuilding Production Schedule, by Yards, 1949-53 18
4. Summary of Production Schedule, by End Users ,1949-52 . 19
5. Planned Production of Ships, Revised Plan of 1952,
1951-55 20
6. Planned Production of Ships, by End Users, Revised
Plans for 1952 and 1953 21
7. Planned Capital Investments, 1951-55 26
8. Reported Capital Investments, by Shipyard, 1949-53 26
9. Summary of Material Consumption 29
10. Employment in Shipyards and Ship Component Plants in East
Germany, 1946-55 33
11. Consumption of Electric Power in Shipyards and Ship
Component Plants in East Germany, 1951-53
i 12. Estimated Ratios of Weight of Steel to Weight of
Completed Vessel, by Types
?
13. Known Ratios of Weight of Steel to Weight of Completed
Vessel, by Types
14. Summary of Capital Investments in the Shipbuilding
Industry, 1951-55
35
52
52
56
15. Engineers' Collective Study of Sales and Invested
Capital, 1951 57
-v -
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
Illustrations
Following Page
Figure 1. Scheduled and Actual Production, 1949-53 . . 18
- vi -
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
CIA/RR 42
(ORB Project 35.2)4.2)
S-E-C-R-E-T
_ _ _ _ _
THE SHIPBUILDING INDUSTRY IN EAST GERMANY*
Summary
The demands of the USSR for ship construction, repairs, and com-
ponent parts have pushed the shipbuilding industry of East Germany into
a major position in the national economy. Vessels constructed or re-
paired in East Germany, as a result of the Soviet policy, relieve
Soviet shipyards .of nonnaval work with a tonnage equivalent to'15
destroyers per year. In addition, the industry furnishes the USSR with
advance repair bases and makes the technological knowledge of the
Germans available for research and development.
The original 1953 plan called for a production of 202,505 gross
register tons (GRT)** of vessels. This plan was unrealistic and in
June 1953 was reduced by approximately 18 percent. Shortages of ma-
terials, funds, and skilled labor were important factors in underful-
fillment of the plan. The tonnage produced in 1952, 113,000 GRT, was
greater than the tonnage reported for Denmark, which ranked ninth among
the shipbuilding countries of the West in 1952.
By 1955, the planned shipyard expansion program will give East
Germany facilities for building a maximum of 235,000 GRT annually.
Unless a more dependable flow of supplies to the shipyards is assured,
it seems likely that much of the new capacity will not be utilized.
Production has been severely handicapped by shortages of certain
raw and finished materials. Indigenous facilities for the production
* The estimates and,conclusions contained in this report represent
the best judgment of the responsible analyst as of 1 April 1954.
** Gross register tonnage is a measure wherein the entire internal
cubic capacity of the vessel is expressed in registered tons (100 cubic
feet to the ton). Certain items are not included in the measurement,
such as peak tanks and other tanks of water ballast, open forecastle,
bridge and poop, hatchway excess, certain light and air spaces, anchor
gear, steering gear, wheelhouse, galley, cabins for passengers, and
other minor spaces specified by law.
S-E-C-R-E-T
?
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
of thin and medium sheet metal are adequate for shipbuilding needs,but
East German rolling mills have been unable to provide the heavy ship
plates required. Importing of heavy sheet plates and copper alloys
has been necessary to maintain the program.
The labor employed by the industry in 1952 represented 3 percent
of the industrial labor force Of East Germany. The morale of the
workers is very low. Resentment towards the Communist domination has
shown itself in the form of slowdowns, acts of sabotage, and poor work-
manship.
,Although old shipyards have been modernized and new shipyards con-
structed, Soviet control of the output of the industry has prevented
the development of an efficient, independent industry that could compete
with the West German or other European shipyards in a free market.
I. Introduction.
A. History of the Industry.
The shipbuilding industry was relatively unimportant in East
Germany before 1945. None of the large prewar German shipyards (those
employing more than 5,000 persons) were located in this area. The
first project in 1946 was to repair the few remaining vessels and to
clear the inland shipping lanes of wreckage. 1/* During the first half
of 1946 the USSR placed reparation orders for the repairs of fishing
craft. These orders acted as the first stimulant to the shipbuilding
industry and necessitated the expansion of various yards.
- The shipbuilding industry grew rapidly in 1948 and becane
more important to the economy of the country. Nationalization of the
larger yards was started, and a central control organization was formed
to regulate and assist in the production of each plant. During the
first half of 1948 the German Economic Commission developed extensive
shipbuilding programs for 1949 and 1950 (basically a Two Year Plan).
The 1950 shipbuilding program was so extensive that it was decided to
* Footnote references in arabic numerals are to sources listed in
Appendix D.
- 2 -
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
build several new shipyards and to redesign other yards. The three
major projects are as follows 2/:
1. Volkswerft Stralsund. A prewar plant entirely redesigned
to handle the serial production of fishing loggers and other vessels
of comparable size.
2. Bodden Shipyard at Damgarten. A new plant designed to
take over the Serial production of fishing cutters.
3. Peen e Shipyard at Wolgast. A new plant designed to take
over the completion and fitting out of fishing vessels built at the
inland yards.
The first Five Year Plan for East Germany, which went into
effect in 1951, planned the building of a large fishing fleet and a
number Of oceangoing vessels for the East German merchant marine. 1/
Thus the capacity of the shipyards increased greatly during 1945-51
and raised the shipbuilding industry from a very minor industry in
East Germany to one of the major industries in the country.
B. Importance of the Industry.
The US Technical Industrial Disarmament Committee for the
German Shipbuilding Industry made the following comments on the ship-
building industry:
"There is hardly an industry which cannot be utilized,
in one way or another, for military purposes. However,
certain industries stand out abOve others in their re-
lationship to the ability of a country to make war.
Among them is the building and operation of ships ...
The technique required for building merchant ships is
roughly the same as that required for the building of
war ships. The skills utilized are almost identical
and yards may be switched from one type of construction
to the other with little difficulty. Practically all
German shipyards were used in the present war for the
production of submarines or other vessels of a military
nature ... . The training acquired in commercial
shipiping operations can be readily adapted to the needs
of war ... . Domestic shipping is vital to the
- 3 -
S-E-C-R-E-T
, Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
recovery and preservation of the German economy.
Many vessels normally operate in the coastal
trade, while inland waterways are an essential
part of the transportation structure of the
country._"
Shipbuilding has become a major heavy machinery industry in
East Germany, The industry employed approximately 56,000 persona in
1953, not including those employed by the component industry,, an in-
crease of 2,800 percent since the beginning of 1947 2/ and approxi-
mately 1,000 percent greater than the prewar level.
The Russians are having the German shipyards along the Baltic
Coast enlarged to such an extent that they will be able, by the end
of 1955, to handle the construction of merchant vessels up to
10,000 GRT and the repairs to vessels up to 25,000 GRT, thus enabling
the Russians to repair both merchant and naval vessels at -the entrance
to the Baltic Sea. At present these coastal yards are handling re-
pairs to minor Soviet naval craft, thereby supplying the Russians with
advanced naval repair bases. J By 1955, East Germany will be in a
position to build larger merchant ships to engage in international
trade.
The majority of the vessels needed to handle the inland trans-
portation of goods are built and repaired at East German inland ship-
yards. An estimated 2.5 million metric tons* of freight was moved
over the inland waterway system in 1952, operated by the German
Shipping and Transshipping Office (DSu). //
Table 1* gives data on vessels in thE inland waterway system
of East Germany.
The East German shipyards have been constructing auxiliary
naval craft, such as minesweepers and coastal patrol vessels, for the
East German Sea Police. By 1953, the schedule called for 35.3 percent
of the shipyard production to go to the Sea Police. f/
C. Organization of the Industry.
Shipbuilding in East Germany is under the control of two
separate governmental departments. The greater number of the ship-
* Table 1 follows on p. 5.
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Table 1
Vessels in the Inland Waterway System of East Germany
1952
Type of Vessel
Out.of Service for Repairs
Total Number of , ? Total
Number of Vessels (Deadweight Tons) Vessels (Deadweight Tons)
Barges 1,654 584,058 .180 64,264
Self-Propelled Barges 277 40,841 5e 8,143
Tugs 356 49,941 75 13,004
Total
2,287 674,840 313 85,4-11
building and repair orders are placed with the individual shipyards
by the Ministry for Construction of Transportation and Agricultural
Machinery through the Main Administration for Ship Construction (iwS).
The remaining orders are placed by the State Secretariat for Shipping
(formerly the General Directorate for Shipping, GDS) with the ship-
yards under its jurisdiction.
The Main Administration for Ship Construction controls 16
NEB (Volkseigene Betriebe People-OWned Enterprises). shipyards, 3
ship-outfitting firms, 2 government yards, and the Central Construc-
tion Bureau. These shipyards handle work for the entire East German
economy, as well as reparation orders.
The State Secretariat for Shipping controls 10 shipyards which
handle mostly repair work for the inland shipping fleets. In addi-
tion, these yards handle some new construction work on a subcontract
basis from the VER shipyards or on orders from the State Secretariat
for Shipping. The Secretariat for Shipping also controls the operation
of all government-owned inland and seagoing vessels and maintains the.
vessels, the harbors, and the waterways, and technically supervises
private shipyards. 2/
The State Secretariat for Shipping replaced the General
Directorate for Shipping (GDS) on I May 1953. 22/ Since all current
orders bear the initials GDS, these initials will be used in this re-
port to separate the yards and orders issued by this office from those
issued by the Main Admi.nistration for Shipbuilding.
- 5 -
SE-C-R-E-T
_ _ _ _ _ _
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
II. Facilities.
A. Types of Facilities.
The shipbuilding facilities in East Germany range from new,
efficient plants to old, antiquated installations and can be divided
approximately into the following groups:
a. Coastal Shipyards.
New Plants 4
Modernized Plants 3
Old Plants 16
Total 23
b. Inland Shipyards.
New Plants 1
Modernized Plants 12
Old Plants 52.
Total 65
Grand Total 88
The modernization of existing yards and the construction of new
yards?were accomplished under the instruction of the Soviet Control
Commission (SKK). The modernization of the shipyaras varied from just
the installation of needed machinery to the complete rebuilding of the
plants for more efficient operation and increased production. The newly
constructed.yards still in, operation are as follows:
1. VEB Mathias7Thesen Werft, Wismar., A modern yard with
4 scheduled building ways capable of constructing vessels up .to 10,000
GRT and planned to handle the complete repairs of vessels Up to 252,000
GRT.
2. VEB Warnow Werft, Warnemuende. A modern yard equal in
size to the Mathias-Thesen Werft except that it will handle complete '
repairs of vessels up to only 12,000 GRT.
- 6 -
S-E-C -R-E-T
? ? ? ? ?
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
*
3. VEB Volkswerft, Stralsund. A modern yard constructed to
handle the serial production of vessels up to 1,000 GRT.
1 4. VEB Peenewerft, Wolgast. A modern yard to handle the
1 construction and repair of naval vessels and auxiliaries up to approxi-
mately 1,000 GRT.
5. VEB Staatswerft, Rechlin. A modern yard to handle the
construction and repair of river vessels and other small craft.
One other shipyard was built, Boddenwerft at Damgarten. The
yard was built to construct fishing cutters on the serial production
basis. In 1951 the yard finished vessels under construction and was
dismantled. 11/
The modernization program has varied from minor changes to
very extensive improvements. The extent of modernization and improve-
ment has varied directly with the importance of the plant to the Soviet
program and not in relation to the necessities of East Germany. The
most extensive modernization and expansion program has been carried on
at the VEB Neptun Werft at Rostock.
As of 1953, the Neptun Werft and the Volkswerft Stralsund
ranked on a par as to mark value of scheduled work and each exceeded
any other shipyard. These two yards, however, are diametrically
opposite in layout, construction methods, and size of work to be
handled.
The Neptun Werft conforms in layout and method of construction
of ships to typical old yards in other countries. The firm is over
100 years old and grew as all old-time shipyards; that is, buildings
were added as needed in the available areas. The original building
ways have the standard bridge-type cranes. The new building ways,
giving a total of six building ways, have gantry-type cranes. The
largest vessel that can be constructed. is approximately 3,000 GRT. 12/
The firm has 2 floating drydocks, 1 of 4,000-GRT capacity and 1 of
6,000-GRT capacity.
The Volkswerft Stralsund was designed for serial construction
of vessels up to 1,000 GRT entirely inside the buildings. The plant
consists of many buildings located about a central construction hall.
Subassemblies are prefabricated in these buildings and transported to
the main assembly hall. Parts that require only layout and cutting
- 7 -
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
enter the main hall at the south end. All the precut and prefabricated
materials move to the three assembly tracks, where they are assembled
on a production line basis. The vessels move progressively through the
shop on dollies. Outside the shop, there is an area for installing
masts and other items too high for the vertical clearance of the shop.
The completed vessels then move to a marine railway on which they are
launched sideways. 1V
The Mathias.-Thesen Werft at Wismar ranks third in mark value
of scheduled work for 1953. This plant, although built around the old
Hansa Werft, is an entirely new plant. Large, modern shops have been
built and equipped with new machinery. This construction is still in
progress and not scheduled for completion until 1955._ The 4 building
ways can handle vessels up to 1.0,000 GRT. The building ways have
cable craneways which are unique to some European countries.
The Warnow Shipyard at Warnemuende is also a new shipyard
built around an old shipyard, the Krueger Werft. Although the layout
varies from that of the Mathias-Thesen Werft because of the topography
of the land, it is to be the same size and have basically the same
types of buildings. This yard is scheduled forcompletion in 1955..
The only other yard that requires special mention is the Boat
and Ship Repair Yard at Gehlsdorf. This yard is important because of
its ability to make fast repairs on small craft ranging up to 600 GRT.
The yard has been completely rebuilt with new narine railways, trans-
fer platforms, and repair areas, making it admirably suited for the
repair of PT boats and similar craft.
Table 2* lists the shipyards located in East Germany and out-
lines their major activities, manpower, drydocking facilities, and
building capabilities. Most of the yards do not have any building
ways listed, although this does not imply that the yards are unable
to build any vessels. These yards built vessels either on the marine
railways or on temporary ways along the river banks.
B. Location of Plants.
The shipyards in East Germany are located in Berlin and
in all the Laender (provinces) except Thueringen. The locations of
the shipyards by cities and coordinates are listed in Table 2. The
* Table 2 follows on p.9.
- 8 -
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
?S-E-C-R-E-T
?
.Table 2
Shipyards in East Germany
Yard
Location
Owner
Number
of
Workers
1952
Marine Railways
Building Ways
New Construction
Capacity
Capacity
NuMber (Tons)
Number
Size ill*
ittlsal
1953
(GRT)
1955
_iliERTII_
Bauer Werft
Wormsdorf
Private
8
2
350
Berlin Werft
Zehdenick
Private
3
3
225
Bobert Werft
Fuerstenber.
Private
-1
N.A.
Bolle Werft
Derben
Private
30
2
700
1,400
1,400
Bootswerft
Postelwitz
Private
30
3
60
Bootswerft Horn
Wolgast
Private
N.A.
N.A.
500
500
Bootswerft Kruse
Ueckermuend
Private
N.A.
N.A.
500
500
Bootswerft Sanitz
Barth
Private
N.A.
N.A.
400
400
Bootswerft Thiele
Malchin
Private
N.A.
N.A.
Bootswerft Wessel-
Lauterbach
Ruegen
Private
N.A.
N.A.
Christians Werft
Marienwerde
Private
5
3
500
Droescher Werft
Rathenow
Private
. 11
2
600
Elbewerft
Boizenburg
VEB
2,300
2
N.A.
15,500
15,500
Ertel Werft
Woltersdorf
Private
13
3
550
Finke Werft
Fuerstenher.
Private
4
1
50
Frans Werft
Niederlehme
Private
7
2
250
Haase Werft
Mullrose
GDS
25
3
550
Hansa-Werft
Henning Werft
Berlin
Barby
Private
r
3
N.A.
5
3
5
N.A.
Hoehne Werft
Hohensaaten
Private
3
2
240
Hoffman Werft
Berlin
Private
N.A.
N.A.
Hoppner Werft
Weseram
Private
8
2
250
Janitschke Werft
Fuerstenber
Private
. 2
N.A. '
Jerichow
Milow
Private
6
1
250
Julichau Werft
Dresden
Private
N.A.
N.A.
Klotz Werft
Schwerin
Private
9
N.A.
KuntZke Werft
Rathsdorf
Private
16
4
500
Loberenz
Marienwerde
Private
lo
3
500
Loesche
Derben
Private
18,
3
760
Mathias-Thesen
Wismar
'FEB
9,50012/ '
4
220 x 40
24,000
48,500
Werft
Matthes
Ruedersdorf
Private
6
2
250
* Footnotes for Table 2 follow on p.13.
- 9 -
S-E-C-R-E-T
_ _ _ _
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
Table 2
Shipyards in East Germany
(Continued)
New Construction
Number Marine Railways Building Ways
Capacity
of

Workers Capacity -Size
Yard
Location
Owner 1952
Mette
Brandenburg
Private
8
Moehring
Ketzin
Private
7
Moeser
Mullrose
Private
19
Neptun Werft
Rostock
VEB
7,500 1D/
Nienburg Schiffs-
werft ?
Nienburg
Private
13
Otto, R. Schiffswerft
'Private
7
Otto Ludewig and
Rostock
Private
28
J. Moller Werft
Peenewerft
Wolgast
-State
3,0001/-
Plauer Schiffswerft Plaue Havel
WEB
198
(Work 2 of "Ernst
?
Thaelmann")
Poeche and Soehne
Zehren
Private
18
Reg. Werkstatt
Hohensaaten
Private
3
Schirner
Ritter Schiffswerft Koenigstein
Private
17
Rosslauer Schiffs-
werft
Rosslau
WEB
2,5001/
Schiffbau- und
Stralsund
WEB.
1,600y
Reparatur Werft
Schiffs- und
Altwarp
State
148
Bootswerft
Schiffs- und
Gehlsdorf-'
WEB
1,600/2/
Bootswerft
Schiffswerft
Dolgenbredt
Private
12
Schiffswerft
Fuerstenberg
WEB
620
- 10 -
S-E-C-R-E-T
21
Number _LT2nEl_ Number (Meters:
3
250
3
300
3
550
1953
(GRT)
1955
(GRT)
100
23,200
5,000
11,000
10,000
10,000
1,000
1,000
3,800
3,800
1,100
1,600
2 100 x 32 9,,500
1 1
1W 6,000 1 loo x 23
1W 4,000 1 loo x22
2 100 x.4C
2 120 x N.A.
1 N.A.
2
400
2
400
1
100
1
350
2
1,500
1
600
3
760
N.A.
3
760
1
500
1
700
1
1,200
1
1,000,
N.A.
1
250
1
1,000
3
250
1
400
1
1400
1 2/
N.A.
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
tr
Declassified in Part - Sanitized Copy Approved for Release2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
Table 2
Shipyards in East Germany
(Continued)
Number
of
Marine Railways Building. Ways
New Construction
Capacity
Workers
Capacity '
Size 2/
1953
1955
Yard
Location
Owner
1952
Number
(Tons) Number
itIll
(GRT)
(GRT)
Schiffswerft
Magdeburg
GDS
56
1
700
Schiffswerft
Oderberg
VHS
865
1
N.A.
1,100
2,500
Schiffswerft
Rechlin
WEB
1,40012/
1
250 1
N.A.
700
2,000
Schiffswerft
Riesa
Private
23
3
760
Schiffswerft ?
Tangermuende
124
3
760
3,000
3,000
.GES
1
250
Schiffswerft
Uebigau
WEB
1,300 121
1
N.A.
7,500
7,500
Schiffswerft
Zehdenick
Private
45
4
250
Schiffswerft
Genthin
Private
17"
2
760
Altenplatow
Schiffswerft
WUrserwitz
Private
7
N.A.
Heopfner
Schiffswerft
Dresden
GDS
114
7
1,000
1,000
1,000
Laubegast
Schiffswerft
Alsleben
Private
25
4
45o
500
' 500
Muerena
1
250
Schiffswerft
Aken
Private
-- 31
4
1,000
Placke
Schiffswerft
Genthin
Private
21
2
760
Schuetze
Schinke Werft
Schandau
Private
20
3
1,000
Schuetze, H. Werft
Aken
Private
200
1
1,600 1
150 x 30
1,000
1,000
Schuppen Werft
Berlin
Private
11
3
285
Siebert Werft
Fuerstenberg
Private
4
N.A.
Sonntag ?Werft
Rogatz
Private
27
2
1,000
2
700
Staatswerft Frohse
Schoenebeck
GDS
82
2
1,000
1,000
1,000
2
250
Staatswerft
Malz
GDP
69
1
600
500
500
Staatswerft
Rothensee
WEB
1,900 12/
1
N.A.
7,000
10,200
S-E-C-R-E-T
,
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
Table 2
Shipyards in East Germany
(Continued)
Number
of
Marine Railways
Building Ways
New Construction
Capacity
.Workers
Capacity
Size a/
1953
1955
Yard
Location
Owner
1952
Number
(Tons)
Number inE51nal
Tratsp. Gen. Damn-
Zehdenick
GDS
3
3
24o
Host '
Volkswerft
Anklam
Private
N.A.
N.A.
Volkswerft
Stralsund
VHS
5,533
1
1
1,000
250
1 (launching
way of 400
tons)
12,500
14,200
Volkswerft "Ernst
Brandenburg
VHS
2,200
2
N.A.
8,000
12,400
ThaeImann"
Vopel Werft
Alsleben
Private
8
2
45o
W. Werft
Fuerstenwalde
GDS
55
3
200
W. Werft
Genthin
GDS
138
2
650
W. Werft -
Rathenow
GDS
56
2
125
Warnow Werft
Warnemuende
VHS
10,000 12/
4 220 x 4o
20,000
48,500
Werft Bled
Stralsund
Private
N.A.
0
Werft Bucholz
Greifswald
Private.
N.A.
N.A.
2,000
2,000
Werft Clement
Tarnewltz
Private
N.A.
N.A.
Werft Yahrling
Freesendorf
Private
N.A.
N.A.
Wilke SchiffSwerft
Zehdenick
Private
8
2
' 233
Winkler Schiff a-
werft
Ruedersdorf
Private
4
2
350
Woth Werft
Parchim
Private
7
1
200
- 12 -
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A00040003000112
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
Table 2
Shipyards in East Germany .
(Continued)
Yard Location
Yachtwerft Berlin
Ziller Schiff a- Havelberg
werft
Total
VEB -i6
GDS -10
- State - 2
Private- 60
Total. 88
Sources ,
New COnstruction
Number' Marine Railways Building Ways, Capacity
of
Workers Capacity Size 2/ 1953- 1955
Owner 1952 Number (Tons) Number (Meters) (GRT) (GRT)
VEB 2,400 12/ 2 , N.A. 1 50 x N.A. 11,400 11,400
2 125 1 N.A.
Private 50 3 600
56,119 -149,500 235,100 ,
a. Some shipyards construct vessels on their marine railways or on temporary ways along the 'river banks. No size for these
is available.
b. Employment figure for 1953.
c. Floating drydocks.
- 13 -
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
majority of the shipyards are located along the Baltic Coast in Land
Mecklenburg. Land Mecklenburg including Berlin is second in total
number-of yards and is first in number of inland shipyards.
The central and northern sections of East Germany are well
served by rivers, canals, and bays. Along these inland waterways are
located medium-size and small shipyards serving the river fleet. The
coastal shipyards are relatively new yards developed to serve a
potential merchant fleet as well as the immediate requirements of the
USSR.
Technology and Training.
A. General.
The shipbuilding industry of East Germany is short of all
types of qualified personnel. A concerted effort is being made to
improve the technical ability of the shipyard personnel through
training and research programs.
In July 1952 it was announced that the machine building in-
dustry (including shipbuilding) had about 38,000 scientists, engineers,
technologists, production managers, and designers, as well as approxi-
mately 600,000 workers. Of the 38,000, however, only 2,000 are fully
qualified for their work. 15/
The shortage of qualified personnel is well illustrated by
an article on the East German shipbuilding situation written by a
shipbuilding specialist. This article dated December 1952 stated
a. The absolute lack of qualified personnel in specialized
fields retarded the actual production output, since the shipbuilding
specialists were required to render their assistance to production
technicians who were not in a position to complete the more difficult
aspects of production problems.
b. The leading personalities were incompetent and showed a
general indifference and unconcern. Individuals who were never
associated with the shipbuilding or.ship engineering trade were
appointed to top positions.
c. There were continual changes of plans.
S-E-C-R-E-T
_ _ _ _ _ _
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
?
?
a
S-E-C7R-E-T
d. The German Ship Register and Classification Society (DSRK)
employed ill-qualified and incompetent individuals, who were not in a
position to carry out a complicated stability computation problem.
e. Many blunders in design, discovered after work had been
started, greatly increased costs.
The many problems encountered on the 3,000-GRT freighter Kolomna,
both during and after design and construction, exemplify typical results
of the lack of competence in the industry.* 17/
B. Research.
The pressing need for even the basic information on shipbuilding
and components has been recognized from the beginning of the East
German shipbuilding program. Various technical committees have been set
up covering wide areas of research. 18/
In addition to the research and development programs devoted
to components, research on ship designs, production techniques, and
materials is under way. Some examples of the projects are as follows:
research to find a substitute material for bronze in ships' propellers;
design and production of an automatic autogenous cutting torch guided by
means of a photoelectric cell; and the development of automatic welding
methods for fabricating small parts. 12/
C. Ship Design. .?..9.11/
Three large design offices support the Shipbuilding industry:
the Central Design and Construction Office in Berlin-Koepenick, the De-
sign Office in Wolgast (Bureau Schlaak), and the Design Office in
Warnemuende. Minor design offices are located at other plants.
* The original German design was sovietized in 1945, re-Germanized in
Rostock in 1951. Plates delivered from the USSR were entirely unsatis-
factory as to chemical content and size tolerances. Defects in the main
as well as in the auxiliary components which developed during yard trials
were apparently not corrected satisfactorily. Fourteen days after
acceptance of the vessel by the Russians the engines, boilers, and dyn-
amos were not operable, and the vessel was towed back to the Neptun
Werft for repairs.
- 15 -
S-h-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
.The Central Design Office in Berlin is headed by a nonexpert in
shipbuilding, Hoendorf. This Office is presently occupied with the de-
signs of small ships and pontoons and recently designed a 60-meter -
Volga-Don passenger vessel, floating docks, floating cranes, and coastal
motor ships.
Attached to the office in Berlin is the Technical Projects
Office, which supervises the expansion work of all shipyards and ex-
amines all ship designs with a view to adapting them to the construction
facilities of variaus yards.
The Design Office in Warnemuende, headed by a shipbuilding
engineer, Franz, is presently, occupied with the designs of freighters.
The Design Office in Wolgast, headed by a shipbuilding engineer,
Schlaak, has been designed to carry out the project and design work on
ships for the Sea Police. The office employs approximately 240 de-
signers but is understaffed. The following projects are currently being
worked on: (a) a destroyer, 120 meters long, (b) submarines (details
unknown), and (c) M-boats (minesweepers).
A Ship Construction Center (Design Office and Model Test Sta-
tion), which Will be located in the area northeast of Rostock between
Gehlsdorf and Tottwenwinkel, is due for completion in 1954 at a cost
of 20 million East German Marks (DME). This station will include a
300-meter towing basin and a closed circuit propulsion canal. The
director, Hantschke, is an expert shipbuilding engineer.
D. Engineering Schools.
To alleviate the shortage of trained personnel, engineering
schools have been established as follows:
1.
Wismar
Technical Schools for Shipbuilding. Divided into
two parts:
Shipbuilding and Ship Machinery Construction.
About 580 students are currently attending. 21/
2.
Warnemuende
Same as at Wismar but smaller. Approximately
300 students are attending at present. 22/
3.
Rostock
University of Rostock in 1951 added a faculty to
teach shipbuilding techniques. It was to
-16-
8-E-C-R-E-T
_ _ _ _
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
train graduate engineers in Naval Construc-
tion. E2/
4. Wustrow Navigation School for mariners. EY
The schools at Wismnr and Warnemuende, which are under the
direction of the Administration for Ship Construction, train foreman-
assistants, technician; and engineers in the specialized work of ship-
building, marine engine construction, and shipyard construction. EV
There is a definite lack of qualified instructors and text books for use
in these schools. EY
IV. Production.
A. Present and Estimated Future.
1. General.
Although the shipbuilding industry of East Germany showed a
steady increase during 1949-52, production has never equalled planned
construction. Fig. 1* shows the relationships between planned and actual
construction for 1949-52 and the planned construction for 1953. The in-
crease in production by the end of 1952 was 187.5 percent over that of
1949.
The scheduled and actual production of vessels by yards and
types is summarized in Table 3.** In reading this table, certain
factors must be kept in mind. Work was subcontracted to firms other
than shipyards, but the production has been credited to the shipyard
that accepted the order. Such a case is the production of BMK boats at
the Yachtwerft, Berlin. El/ In the case of the production for the
Vblkswerft Ernst Thaelmann, in 1952, the pontoons were probably sub-
contracted, although no direct report on the subject has been noted.
A summary of the production for years 1949-52, planned and
actual, by end users is given in Table 4.xxx
2. Five Year Plan, 1951-55.
The Five Year Plan envisaged a total output of 291,414,000
DME in 1951 increasing to 660,510,000 DME by 1955. 'This plan was not
* Fig. 1 follows p. 18.
** Table 3 follows on p. 18.
XXX Table 4 follows on p. 19.
-17-
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
Table 3
Shipbuilding Production Schedule, by Yards
1949-53
GRT
1949
1950
1951
1952
1953
Shipyard Scheduled
Delivered
Scheduled
Delivered
Scheduled
Delivered
Scheduled
Delivered
Scheduled
Schiffs- und Bootswerft
Altwarp
N.A.
N.A.
N.A.
N.A.
969
639
' 151
. 160
N.A.
Boddeftwerft 7 Damgarten
8,000
4,000
10,113
9,813
4,649
3,836
Elbewerft - Boizenbutg
7,950
7,150
6,000
6,000
10,400
10,400
16,600
14,400
20,600
Mathias Thesen Werft -
Wismar
N.A.
N.A.
559
559
o
o
5,775
2,200
24,117
Neptun Werft - Rostock
16,432
14,432
20,960
20,960
32,000
32,000
26,800
26,800
26,835
Peenewerft - Wolgast
840
o
4,920
180
4,994
Rosslauer Schiffswerft
Rosslau
4,800
4,000
5,200
4,800
8,824
6,840
14,919
9,457
24,733
Schiffswerft Fuersten-
berg
i.A,
N.A.
Boo
600
3,459
3,259
1,200
0
4,800
Schiffswerft Oderberg
N.A,
N.A.
N.A.
N.A.
N.A.
N.A.
.600
-0
750
Schiffswerft Uebigau
N,A.
N.A.
N.A.
N.A.
1,000
1,000
12,430
8,100
5,900
Schiffs- und Bootswerft-
Gehlsdorf
1,500
1,500
1,500
1,500
1,771
1,745
1,862
1,463
2,824
Staatswerft - Rothenaee
2,000
800
3,500
2,000
3,300
2,400
12,096
7,870
6,926
Volkswerft Ernst Thaelmann7
Brandenburg
4,400
1,800
6,800
6,800
10,425
10,425
26,570
12,034
14,384
Volkswerft Rechlin
8
o
12
12
90
90
508
Volkswerft Stralsund
8,000
2,400
13,200
7,200
15,977
7,227
19,797
20,439
31,726
Warnow Werft - Warnemuende
17,300
0
20,542
Yachtwerft - Berlin
988
988
3,232
3,544
3,791
3,389
10,094
9,347
12,12?
Minor Shipyards
2,815
2,015
1,800
800
3,660
2,685
1,550
800
750
Total
56,885
39,085
73,672
64,576
101,077
85,857
172,754
113,340
202,505
- 18 -
S-E-C -R-E-T
Declassified in Part - Sanitized Copy Approved for: Release 2013/05/28: CIA-RDP79R01141A000400030001.-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
200
150
100
50
S-E-C-R-E-T
'(Thousand
I
Gross Register
Tons)
ii iiiii i ?
Scheduled
4-/,'/1 Actual
7
7 -
ii
>.,
1949
1950
1951
1952
FIGURE 1
Scheduled and Actual Production, 1949-53
S-E-C-R-E-T
1953
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
1
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
t.
4
a
S-E-C-R-E-T
_ _ _ _ _
Table 4
Summary ofTroductionSchedule, by End Users.
19497-52
Delivered to
Scheduled
GRT
Percent
of
Total
Delivered
GRT
Percent
of
Total
Percent
of
Fulfillment
USSR
299,319
74.0
249,929
82.5
83.5
Export
5,538
1.4
2,577
0.9
46.5
BfW a/
22,138
5.5
9,224
3.0
41.7
Civilian Sector
77,393
19.1
41,128
13.6
53.3
Total
404 388
100.0
302,858
100.0
74.9
Central supply office for paramilitary organizations.
realistic since it covered only the construction of fishing vessels and
freighters. The actual production of vessels included not only these
types of vessels but many others such as tugs, barges, fire boats, and
East German Sea Police vessels. The plan was prepared by the East
Germans, who optimistically planned on an East German merchant fleet.
The occupation authorities did not allow the plan to be carried out,
because it did not give the USSR sufficient vessels. 21.3/ On 4 December
1952 a report of the Ministry for Machine Construction gave a revision
of the basic Five Year Plan as it had developed. 22/
The revision of the Five Year Plan proposed production assignments
for eight types of vessels. This plan is shown in the upper section of
Table 5.*
The revised plan for the production of these basic types was
later scaled down to provide capacity for the production of other
craft for the USSR. A detailed breakdown of this further revision is
shown in the lower section of Table 5.
* Table 5 follows on p. 20.
-19
S-E-C-B-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
? ? ? ? ?
0
Table 5
Planned Production of Ships, Revised Plan of 1952
1951-55
Units
Type
1951,
1952
1953
1954
1955
Total
? Cutter
276
6o
60
6o
6o
516
Seiner
40
4o
40
40
40
200
Logger
64
83
123
143
150
563
Trawler
3
15
18
20
25
81
Freighter,
Type
3
7
2
12
Freighter,
Type
II
1
4
5
Freighter,
Type
III
3
3
Freighter,
Total
Type
IV
383
198
244
2
273
1
285
3
1,383
Planned Production of Ships, Revised Plan of 1952
Approved Plan for 1952 and 1953
Units
Type
Five. Year
Plan Proposed
for 1952
Plan
Approved
for 1952
Actually
Completed
1952
Five Year
Plan Proposed
for 1953
Plan
Approved
for 1953
Cutter
6o
6o
62
60
30
Seiner
1.0
16
16
1.0
20
Logger
83
71
71
123
81
Trawler
15
12
2
18
1
Freighter, Type.
I
1.2
Negligible
3
2
Freighter, Type
II
Freighter, Type
III
Freighter, Type
IV
0.5
Negligible
Because of material shortages, even the approved plan .could not
be met, and manpower was diverted from construction of trawlers and.
freighters for the German civilian .sector and for export to repair Work.
and to. some additional new construction on reparations. contracts., . The.
final allocation, for the several end users for 1952 is Shown in the
upper section. of Table 6.*
* Table 6 follows on p. 21.
-20-
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-
Table 6
Planned Production of Shipelby End Users
Revised Plan for 1952
Item
Statutory
(Thousand
DME)
Plan
(Percent)
Actual
(Thousand
MEI
Plan
(percent)
Difference
(Thousand
_DM)
Reparations
170,958
52.2
214,442
65.5
+ 43,484
New
61,037
18.6
79,521
24.2
+ 18,484
Repairs
109,921
33.6
134,921
41.3
+ 25,000
Export
6,334
1.9
2,514
0.6
3,820
BfW
72,658
22.1
73,444
22.4
+ 786
Civilian Sector
78,060
23.8
37,610'
11.5
- 4o 45o
Total
328,01,0
100.0
328,010
100.0
The plan for 1953 reduced the Civilian Sector still further to
34,283,000 DME, a reduction of 56 percent, changing it from 23..8 per-
cent tO 7.5 percent of the total plat:
The revised plan for 1953 is as follows:
Planned Production of Ships,by End Users
Revised Plan for 1953
(Continued)
Item
Reparations
New Construction
Repairs
Amount Gross Production
(Thousand DME) (Percent).
240,811
126,411
114,40o
-21-
52.3
27.5
24.8
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
Table 6
Planned Production of Ships,by End Users
Revised Plan for 1953
(Continued)
Amount
Item (Thousand ,DME
Gross Production
(Percent)
Export
28,023
5.0
BfW
162,961
35.2
Civilian Sector
34,283
7.5
Total
2466,078
100.0
3. Revised PrograM, 1953.
Political, Social, and economic developments in East
Germany during the spring of 1953 caused a revision to be made in the
shipbuilding program as scheduled for 1953. The program was revised
by canceling the construction of some vessels, postponing the construc-
tion of others, and redistributing vessels among the various yards to
create a more economical production. Since lack of materials and man-
power would have prohibited the fulfillment of the program as origi-
nally planned, the revision probably did not reducethe actual produc-
tion that could have been carried out. 3.2/
Some curtailing of the shipbuilding program was made as
early as 9 June 1953 as a result of financial difficulties, shortages
in material and labor, and the speed-up of the reparations pro-
gram: 11/ It is doubtful that the civil-disturbances during June had
any real effect on this program.
The expenditure for ship construction, excluding repara-
tions, for the year 1953 was drastically reduced because of material and
labor shortages. It was estimated that this reduction would release
7,000 to 10,000 workers from the industry, or a maximum of 18 percent of
the planfted labor force. 2/ Including the reparations account, the
shipbuilding industry, however, would still be working at approximately
82 percent of the originally planned program.
-22 -
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
?
?
S-E-C-R-E-T
Since the June 1953 cutbaCkl there have
tions that the industry is still short of Workers.
August, Workers were being recruited for the Warnow
Neptun Werft from all parts of East Germany to meet
quirements even with the reduced programs. 13./
been indica-
During July and
Werft and
the yards' re-
The steel required for the original 1953 program Was
not available. The final allotment made by the Ministry to the
shipyards amounted to 77.5 percent of their requests, IV and a
reduction in the planned program was absolutely necessary. -
The implementation of this reduced program was actually
started on .8 "July 1953 at a Socialist Unity Party (SED) Conference
held in Rostock. The shipyards were instructed at this time that
all vessels being built for East Germany which were 50 percent or
less completed were to be "moth-balled" immediately. All vessels
for East Germany over 50 percent completed were to be examined
individually to determine whether they would be completed. 35/
The changed program also slowed down the capital invest-
ment program. Craneways 3 and 4 at the Marnow Werft and Mathias-
Thesen Werft were deleted from the 1953 program. The floating dry-
dock that was under construction for the East German Sea Police was
stopped. _3_?./
This "new course" in the shipbuilding industry appears
to be principally paper work designed to cover up the fact that
plans could not be fulfilled and to insure the fulfillment of the
reparations orders. Whether or not the expansion of the shipyards
will be resumed and brought to the position planned in the Five Year
Plan has not been indicated.
B. Maximum Capability.
The maximum capacity of the shipyards at present and as
planned by the end of 1955 is given in Table 2. This shows a
maximum capability of 149,500 GRT in 1953 and a maximum of
235,000 GRT by the end of 1955. The figures in each case are based
on the following conditions:
a.
b.
C.
Operating on a one-shift basis.
Adequate supply of labor and material.
Using the existing amount of subcontracting.
-23-
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-F-T
a. Maintaining the existing volume of repairs.
e. Sane variety of vessel types as now being produced.
f. Present method of fabrication used at each yard.
Using the estimated maximum capability for a 3-shift basis as
derived by VOlkswerft Stralsund of 63 percent of the maximum produc-
tion being performed on the day shift, a maximum capability of
376,00Q GRT would be obtained for 1955.
This figure is merely relative and dependent on many factors.
The conditions affecting the maximum production of shipbuilding are
such that no maximum production figure can be set as a limit. A
variation in any of the factors listed above would vary the results
considerably. Also, if ship construction is of prime importance in
the tine of an emergency, as was the case in the US during World
War II, any nation with a sound shipbuilding industry can rapidly
expand its facilities. It should be pointed out, however, that
shortages of materials which have plagued the East German shipbuilding
industry for the past 4 years show no sign of easing. Accordingly,
planned capacity and maximum capacity are 2-3 times probable future
production.
C. Subcontracting Program.
Subcontracting (the purchase of parts or fabricated ship
subassemblies that can be or are normally manufactured by the ship-
yard) is widespread in East Germany. There are two basic reasons
for this program; (a) to utilize all existing facilities and (b) to
reduce the flow of labor into areab where housing is in short supply.
Deck houses, masts, ships' frames, and other steel items are
subcontracted by the major shipyards to, the smaller state-owned yards,
private shipyards, and steel fabrication plants. 32/ Complete vessels
are subcontracted by one shipyard to another yard. The "end-con-
struction" work performed by coastal shipyards is a form. of subcon-
tracting, since the inland yard holds ?the contract for the completed
vessel. 2/
This subcontracting program has helped to maintain the smaller
state-owned yards in an operating condition and and has kept the
private yards in business, since they cannot obtain material for pri-
vate work.
- 21+ -
S-E-C-R-E-T
_ _ _ _
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
As an example of how this program is definitely taken into
account when planning the yearly programs, the work assigned the
Volkswerft Stralsund for, 1951 was planned by the government to be
handled as follows
40 loggers - 2,400,000 man-hours - 16 percent to
' be subcontracted.
12 trawlers,- 1,560,000 man-hours - 10 percent
to be 'subcontracted.
8 fishing Service boats* 7:2,160,000 man-hours
20 percent to be subcontracted.'
This subcontracting represents 972,000 man-hours or 16 per-
cent of the assigned load of 6,120,000,man-hours.
D. Plant Expansion.
1. Past and Present Expansion.'
The East German shipyards have been expanded since the
end of World War II. This expansion in some cases has been very
extensive.
. Table 7** gives,the capital investments in the shipyards
planned under the Five Year Plan.
The figures in Table 7 do not include the shipyards of
Neptun, Oderberg, and Fuerstenberg since these yards were Soviet-
owned enterprises_(Sowjetische Aktiengesellschaft, SAG)*** plants
when the plan was formulated.
The revised plan for 1953 capital investment in ship-
yards is 85 million DME. This revision includes higher costs,
correction of errors made in estimating,and an allowance of 11 mil-
lion DME to the three former SAG plants. The result is a net
reduction in over-all actual work to be performed. /3/
Rising costs, revised estimates, and revised, expansion
plans have actually raised the total. plan figure of 278.3 million
LME to 605,3 million DME. This figure does not include the
* Actually minesweepers.
** Table 7 follows on p. 26.
*** Later changed to Staatliche?Aktiengesellschaft -- State-Owned
Enterprises.
-25-
C
S-E-C-R-E,T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S -E -C -R -T
Table 7
Planned Capital Investments
1951-55
Million DME
Values
Plant
1951
1952
1953
1954
1955
Total
Mathias-Thesen Werft
29.0
29.2
28.1
11.3
4.3
102.0
Warnow Werft
25.1
32.3
32.2
18.1
7.5
115.2
Volkswerft/Stralsund
4.5
5.0
4.0
6.8
0.3
20.6
Balance under HVS
4.3
9.9
6.1
4.2
3.0
27.5
Other Plants
5.4
5.6
5.6
1.6
0.9
19.1
Total
68.3
82.0
76.0
36.0
16.0
278.3
PeeneWerft, WOlgas-t, which was under the direct control of the BfW
at the time this estimate was made.
The reported amounts invested in the various shipyards
are shown in Table 8.
Table 8
Reported Capital Investments, by Shipyard
1949-53
Thousand DME
Shipyard
1949
1950
1951
1952
1953
Mathias-Thesen Werft
W.A.
15,976
29,045
29,200
28,100
Warnow Werft
N.A.
6,800
25,100
32,300
32,200
Neptun Werft
3,450
N.A.
10,000
3,260
8,787
Gehlsdorf
N.A.
N.A.
N.A.
3,500
4,600
Schiffsmontage
N.A.
N.A.
N.A.
N.A.
250
Volkswerft/Stralsund
N.A.
N.A.
4,500
5,000
4,000
Elbewerft
N.A.
N.A.
N.A.
270
1,178
Volkswerft Ernst Thaelmann
N.A.
1,450
1,047
389
333
Rothensee
N.A.
N.A.
N.A.
450'.
2,211
-26-
_ _ _
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
a
S-E-C-R-E-T
Table 8
Reported Capital Investments, by Shipyard
1949-53
(Continued)
Thousand DME
Shipyard
1949
1950
1951
1952
1953
Yachtwerft
N.A.
N.A.
700
336
900
Uebigau
N-.A.
N.A.
98
187
860
Fuerstenberg
N.A.
N.A.
10,000
N.A.
620
Oderberg
N.A.
N.A.
N.A.
N.A.
865
Rechlin
N.A.
N.A.
N.A.
N.A.
1,400
Peenewerft
N.A.
N.A.
N.A.
526
24,000
Rosslauer
N.A.
N.A.
N.A.
1,168
3,476
Ship Repair/Stralsund
N.A.
N.A.
N.A.
300
207
Ships' Electric
N.A.
N.A.
N.A.
N.A.
12,000
Construction Bureau
N.A.
N.A.
N.A.
N.A.
80
Incomplete Totals 3,450 21i.22_6_ 8_22122 76,886 126,067
These funds were not expended entirely on production
facilities. They include funds for such items as housing of workers,
office building, and recreational facilities.
Late in 1952, the East German Ministry announced that
shipyard expansion was to be halted immediately except for work which
was nearly completed and which would directly increase the productive
capacity. 46/ Reports of July 1953 indicate that expansion work had
been nearly stopped or completely halted. At the Warnow Werft and
the Mathias-Thesen Werft, the completion of the third and fourth
craneways over the building ways had been halted'. Ligi
Actual capital available for capital investment in VEB
plants during 1953 amounted- to Only about 10 percent of that provided
during 1952, resulting in a severe curtailment of the plan. 1@./
2. Planned Expansion.
On 4 September 1952 the Council_ of Ministers issued
directives to the nationalized industries in East Germany concerning
-27-
S-E-C RET
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
preparation of expansion and reorganization plans (technical and
organizational). According to these directives, each centrally
controlled plant is to prepare an expansion plan and submit the
plan to the HVS for approval. - The plans were to be long-range
plans, which were to cover nOt only the technical and economic
development of the plant within the framework of the Five Year Plan
but to go far beyond it. 112/
The most outstanding project planned by tne Russians
was a naval operating and repair base, and shipyards on Ruegen Is-
land located close to Stralsund. The investments in shipyards
envisaged in the plan were22/:
Thousand. DME
Small shipyard 118,755
New construction yard 731,725
Repair yard, estimated 1,038,430
Later sources indicate that this work has been halted. 21/
V. Input Requirements.
A. Raw Materials.
1. Material Consumption.
Material clas,sified as raw material in this section
involves all material that has labor expended on it by the shipyard
in order to use it on the vessels. A large percentage of the ma-
terials received ,in a shipyard are classed by the producing plant
as finished material, such as steel plates and shapes, pipe, lumber,
and castings.. The value added to these materials by the shipyard
is principally in the cost of labor, power, and overhead.
Table 9* gives 4 summary of the material consUmption
and allocation of shipyards and related industries. To the quanti-
ties of material purchased directly by the shipyard are added the
materials required by the component part manufacturers. The tonnages
of material required by the shipbuilding industry in this table are
* Table 9 follows on.p. 29.
-28-
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
Table 9
SimmAry of Material Consumption
Item
Unit
Consumption
1952
Shipyards
Consumption
1952
Industry
Percent Of
National
Production
Ratio
Unit
to GRT
Shipyard
Allocation
1953
Anticipated
Industry
Consump#On
. 1953
Percent of Ratio
National, Unit
Productioni to GRT
Fuel
Raw Brown Coal'
Tons
10,595
15,600)
0.02
0.137
19,246
28,300)
0.05
0.136
Soft Coal
'Tons
.15,854
23,300)
0.201
46,519
68,400
0.327
Coke
:Tons
0
0
0.0
1,500
2,200
0.11
0.008
Gas Coke?
Tons
2,121
3,100
0.02
0.024
3,767
5,500
0.03
0.024
Brown Coal
Briquettes
Tons
33,674
49,500
0.12
0.434
43,042
63,300
0.13
0.303
Total
Tons
62,211.11.
91,500
0.796
114,074
167,700
0.797
Foundry Iron
Tons
134
200
0.14
0.0014
154
230
0.08
0.0015
Steel
Tons
63,407
93,200
8.08
0.8192
124,357
182,900
12.35
0.8631
Copper and Copper
Base Products
Tons
358
530
1.401p/
0.0031
845
1,240
3.1
0.0055
Lead
Kilograms
1,600
2,400
Negligible
0.0170
10,000
14,700
0.07
0.0500
Zinc
TOM
303
440
Imported
0.0031
710
1,040
Imported
0.0055
Tin
Kilograms
3,754
5,520
1.07
0.0500
3,500
5,150
0.87
0.025
Nickel
Kilograms
N.A.
N.A.
704
1,040
Negligible
0.004
Aluminum
Tons
512
750
5.27
0.0072
1,943
2,860
19.07
0.0135
Solder (30 per-
cent)
Kilograms
4,147
6,100
3.2
0.0500
12,056
17,700
5.90
0.0830
Lumber
Cubic Meters
37,783
55,500
1.85
0.4879
55,250
81,000
2.70
0.3860
a. Most of 1953 figures are based on Five Year Plan Figures.
p. National production; does not include imports.
- 29 -
S-E-C-R-E-T
_ _ _ _ _ _
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
compared with the national production of East Germany in percentages of
national production. The industry required 8.1 -percent of the national
steel ingot production in 1952 and will require 12.4 percent in 1953
(based on 72 percent ingot production being shipped in finished steel).
2. Material Purchasing and Storing.
The purchasing and storing of materials must conform to
the legal regulations of East Germany. Detailed lists covering require-
ments of materials for the year ahead are prepared. The Main Adminis-
tration for Ship Construction collects the material demands of all the
plants and shipyards under its Jurisdiction and passes them on to the
Ministry for Transportation and Agricultural Machinery. From there,
all material requisitions are forwarded to the State Planning Commis-
sion, which establishes the production quotas. Those that cannot be
fitted into the East Germany economy are passed on to the Ministry for
Home and Foreign Trade to purchase abroad. The actual purchasing of
the material is handled by the Main Administration for Ship Construc-
tion for the smaller yards. The larger yards purchase directly from
the suppliers. 22/
Stocks in excess of those required for 120 days are
considered to be excess and must be turned in for redistribution. This
causes many difficulties, particularly in those yards that are behind
schedule. 22/
3. Material Suppliers.
Materials are suliplied by all sectors of the East German
economy and by imports from the West and the Soviet Bloc countries.
Since steel is by far the largest single material item entering into
shipbuilding, this item will be used to show the general conditions
which also apply to other materials in varying degrees.
The 1952 plan required the import of 94.9 percent of the
steel to be used by the shipyards. garly in the year contracts had
been concluded to obtain 25,845 tons from the USSR and 18,610 tons
from non-Soviet Bloc countries. By 30 April 1952, only 5,602 tons
had been delivered from the USSR while none had been received from
non-Soviet Bloc countries. 2Y Resulting changes in the plan required
the importing of approximately 11,595 tons from the USSR, all of which
was to be used on reparation orders. 22/
-30-
S-E-C-R-E,T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
a
S-E-C-R,E-T
For the fourth quarter of 19524 the steel allocations for
thick steel plates (thickness of 5 millimeters and over) for heavy ma-
chine construction, general machine construction, vehicle construction,
ship construction, electrical machine construction, and precision ih-
struments'construction amounted to 42,718 tons. Of this amount,
30.4 percent, or 12,969 tons, was allocated to the shipyards. Of this
material, 10,899 tons were to be obtained from East German mills and
2,070 tons from imports. All the thin steel plate (thickness of
3 millimeters and under) was to be obtained from the East German mills.
The shipyards were to receive 497 tons, or 22 percent of the medium
steel plate (thickness of over 3 millimeters and under 5 millimeters)
production. _go/
In September 1952, Hungary asked the East Germans to supply
a list of commodities which East Germany found difficult' to obtain so
that the Hungarian representatives could include them in their negotia-
tions for trade agreements with such countries as Argentina, Holland,
and Austria. Items included in this list were ship plates, boiler
plates, seamless tubes, and deck planking. 22/
Steel materials required for the first quarter of 1953 were
covered to the extent of 35 percent by materials in store and impending
deliveries. The remaining 65 percent was to came from imports. LW
From 22 February 1953 through 27 March 1953; 3 Dutch ships unloaded
1,004 tons of shipbuilding plate and 68.8 tons of seamless pipe at
Wismar. This material was subsequently transferred to various ship-
yards. Ail of this material had been shipped from either Antwerp or
Rotterdam. 22/ Steel plate in the amount of 3,123 tons was received
from the USSR in July 1953, and 2,581 tons were scheduled to be re-
ceived from non-Soviet Bloc countries by 15 July 1953. ?12/
Steel for the shipyards is produced by the East German
rolling mills located in Ilsenberg, Thale im Harz, Riesa, Finow,
Hennigsdorf, Aue, Hettstedt, Maxhuette, and Kirchmoeser. These
mills could, if necessary, produce the thin and medium sheet steels
required by the industry. The heaviest steel plate (over 12 Milli-
meters) required by the shipyards cannot be supplied in sufficient
quantities by these mills, and the industry is dependent on imports.
Other materials such as copper and manganese ores are,
to a great extent, imported from the USSR.
-31-
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
4. Quality of Material.
The thin plates received from the USSR and,from the Tolling
mills in Brandenburg and Hettstedt are of poor quality. On 21 March
1953 there were 5 or 6 large piles of thin sheet in the shipyard of
the Volkswerft Stralsund which could not be processed because of
differences in thickness. For example, 7-millimeter plates measured
only 6.6 millimeters in thickness. 63/ This poor quality of plates
caused a considerable amount of deterioration and increased mainte-
nance cost. ?1)1/ Vessels built with steel plates produced in East
Germany were frequently in drydock. Castings delivered from the
foundries in Torgelow and Riesa show a high percentage of rejections,
sometimes running as high as 100 percent.
5. Material Shortages.
Material shortages are the most critical problems facing the
industry and require a disproportionate share of supervision by top
management. An indifferent attitude is taken by the governmental de-
partments concerning the material situation. In November 1952 the
Rosslauer Schiffswerft sent a detailed report to the Department for
Reparations covering the material situation. The answer to their re-
quest for assistance was that shortages of material is not an adequate
excuse for deferring the delivery deadlines. This attitude is
recognized by the State Minister for Transportation and Agricultural
Machinery. On 14 March 1943, he advised the shipyards that they should
apply to the HVS for assistance in all problems that they cannot solve
themselves. If this authority did not'give assistance because of the
"bureaucratic way of working," they should apply to him personally. .62/
The GDS shipyards are in even a worse predicament. They
receive only left-over material, which is practically nonexistent. .6.Y
B. Finished Materials.
The finished materials (component parts) entering into the ship-
building industry cover a very wide range of items. .6.2/ Because of
the general material, labor, and equipment conditions existing through-
out East Germany, component parts are not delivered to the shipyards
on the scheduled dates. This is one reason for the generally late de-
liveries of vessels and this condition at times becomes so acute that
the yards have to ask the Ministry to intervene in their behalf with
the component plants. 22/
-32-
SE-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
46-
S-E-C-R-E-T
Some of the more critical component parts, especially for the
repair of existing vessels that have machinery made in non-Soviet Bloc
countries, are obtained from the West. The Neptun:Werft has. a special
account containing West German marks with Which it can purchase ma-
terials in West Germany needed in the repair program.
Component parts are also supplied by the USSR and. otherSoviet
Bloc countries. During the second half of 1952; the USSR supplied
East Germany with materials and equipment, including marine diesel
engines. 12/
Some of the shipyards are also component manufacturers for other
shipyards. One example of this is the Mathias-Thesen Werft, which
makes exhaust gas boilers for other shipyards. Di
C. Manpower.
The manpower requiredbythe.shipyards and, ship component in-
dustry has grown in direct proportion to the work load. Although the
actual. employment has. lagged behind the planned load, the employment
has shown a rapid expansion. The employment in the shipyards and com-
ponent plants has followed the pattern shown in Table 10.
Table 10
Employment in Shipyards and Ship Component Plants in. East Germany
1946-55 ?
Year
Shipyards
Ship
Component Plants
Total
Percent of
National Labor
Gainfully Employed
1946
2,000
? 300
2,300
N.A.
1947
-9,000
1,200
10,200
N.A.
1948'
13;000
1,800
14,800
N.A.
1949
'27;000
3,700
30,700
o.40
1950
38,000-
5,200 ?
43,200
0.56
1951' -
" 45.,000
6,200 ?
51,200
0.65
'1952
51,000
'
7,000
58,000
0.73
-33-
- S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
Table 10
Employment in Shipyards and Ship Component Plants in East Germany
. 1946-55
(Continued)
? Percent of
Ship National Labor
Year Shipyards Component Plants Total Gainfully Employed
1953
56,000
7,700
63,700
0.80
1955.2/-
60,000
.8,200-
68,200
0.81
a. Estimated.
The employment of wOmen,in the industry is Common. In 1951,
women formed approxitately 14..7 percent ,of the labor force. -The.per-
centage Of underage workers employed by.the.-VOlkswerft Stralsund in
1952 was 16.8 percent, and this figure can be assumed to be atair
average for the entire industry. The apprenticeship systet is used
in all shipyards, with the Apprentices making up about 12 percent of
the labor force. 211/
The employment figures for the component plants are based on
man-hours and do not mean that the, number given is continuously
employed on components. The actual number of employees. making com-
ponent parts will Vary above and below these figures at one given
time.
Electric Power.
The total power consumption used by the shipbuilding industry
is given in Table 11.* The electric, power consumption in kilowatt-
hours (kwh) is based on. a consumption bythe shipyards of 250 kwh per
GRT of new construction produced. The electric power consumption in
kwh used by the ship component industries is based on 1,100 kwh per
ton of steel for machinery,** which gives a power. consumption of
320 kwh per GRT for components. The kwh figure fOr repairs is based
* Table 11 follows on p. 35.
** CIA estimate.
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
on. the consumption for repairs carried on in 19510 and this load has
been assumed constant.*
Table 11
Consumption of Electric Power
in Shipyards and Ship Component Plants in East Germany
1951-53
New Construction
(Thousand KWH)
Percent of
GRT Repairs Total National
Year Produced Shipyards Components Total (Thousand KWH) (Thousand KWH) Production
.
1951
85,857
21,464
26,464
47,928
18,953
66,881.
0.31
1952
113,340
28;335
36,269
64,604
. 18,953
83,557
0.36
1953
202,505
50,626
64,802
115,428
18,953
134,381
0.53
_
Electric power is supplied to the industry by State plants,
municipal plants and by shipyard power stations,
E. Transportation.
The movement of raw and finished materials to the shipyards from
the mines, rolling mills, and ship component factories has not appeared
to cause a great deal of difficulty in East Germany. There is, however,
a shortage of available transportation in East Germany for handling the
complete movement of all goods.
The materials for the shipyards are moved via railroad, truck,
and water, whichever is the most convenient. Since some shipyards are
not located near railroad lines, all materials are transported into
the plants by either road or water.
Steel and coal are transported principally from the southern
part of the Soviet Zone to the inland yards located in Land Brandenburg
and the coastal yards located in Land Mecklenburg. A larger part of the
minor or lighter component parts are produced in the Berlin, Leipzig,
and Dresden areas. Plants producing heavy components, such as diesel
engines, are located in the central and northern parts of East Germany,
closer to the consuming plants.
* See Methodology, p. 51.
-35-
:S-E=C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Allowing? approximately 10 percent for scrap, 200,000 tons of
material would have to have been transported. If all of this material
had been produced in East Germany, it would represent approximately
30 million ton-miles. For the assigned production in 19531 this would
have increased to 50 million ton-miles of transportation.
F. Financial Inputs.
1. Capital Investments.
The Five Year Plan /2/ listed 84,865000 DME as the total
shipyard capital investments. A revised estimate prepared by the
HVS litted.a,plan total of2781300,000 DME for the same 5-year
period. 1g The actual investments in plants started in 1946 and
have continued ever since but not entirely according to an over-all:
plan. Certain 'shipyards were planned and expansion programs laid out .
during the period of 194649.
On the basis of the revised figures prepared by the HVS at
the end of 1952, the increase in ship construction from 1951 through
1955 Would amount to 2731315,000 DME, and the capital_inVestments for
the same period would amount to 278,300,000 DME, This is equal to
0.98 DME'Of ship construction for each DME of invested capital during
the sameperiod. Using'this ratio and the capabilities as giVen'for
?1953 and :1955 of 6001730,000 'D and 788 million DME, 21/ respectively,
plus the investments in the Peenewerft of 24;526,000 DME 18./ and an
assumed value of 10 million DME for all other. yards, the'capital'in--
vestments for the shipyards for new construction Would be 647 million
DME in 1953 and 840 'million DME in 1955*
Using the 1953 total, a relationship between Capital in-
vestment and production in GRT can be obtained. With 202,505 GRT
scheduled for 1953, the ratio of capital investment in plants and
equipment to GRT is 3,200 DME per GRT This figure would apply to the
entire group of Shipyards', inland and coastal. For Only the inland
yards and industry studY,,a ratio of 680 DME.of 'invested capital to
GRT is' obtained.
r
* See Methodology, Appendix B!,for complete details.
-36-
S-E-C-R-E=T
? ? ?
, Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
2: Ship Values.
The cost ratio of DME to GRT of vessels being built
varies from 1,350 DME for a-Coastal mOtor freight vessel to
j4,400 DME.for a motor cruiser (yacht). A straight average of the
vesseltypes gives 3,260 DME per GRT.
Since the value of a vessel depends on many faetorS.,
such as size, method of construction, and outfitting, the ratios
obtained cannot be plotted as a graph to-_show a consistent tendency.
The general pattern Of costs per GRT is that the smaller vessels
cost more than the larger vessels.
VI. Limitations and Vulnerabilities.
A. Limitations.
:The limitations of the East German shipbuilding industry are
many and varied.
The material used in the industry is not all produced in
East Germany for two reasons: (1) there are no ,sources of taw ma-
terial and (2) the manufacturing requirements of the industry require
more material than is produced in the Soviet Zone. This lack of
materials, both raw and manufactured, has retarded the growth of the
industry, has limited its productive ability in the past, and will
to limit the future Capacity.
The lack of technical personnel hampered. the initial growth
of the industry and still retards its advancement even though technical
schools have been established for training shipbuilders and marine
engineers. This shortage is definitely reflected in the, quality of
work turned out by the industry. The relatively few qualified engi-
neers cannot check all the designs and plans developed. Even with the
technical schools beginning to turn out graduate engineers, it will be
some time before these new graduates are-in a position to accept '
responsibility.
Since East Germany had only a very small shipbuilding industry
before and during World War II, there was never a reasonable nucleus
of skilled personnel on wnich to build the industry. To alleviate
this condition, a speeded-up apprentice system was installed in all
the shipyards and manufacturing plants. Even after seven years, this
-37-
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
_ _ _ _ _
training system has not turned out enough qualified personnel to keep
pace with the expansion.
The USSR had the shipyards expanded along with the basic com-
ponent plants to support their own activities and interests. While
the improved facilities are very good for the use intended, in some
cases, these facilities would be uneconomical to operate on a normal
schedule of varied work.
The greatest facility limitation in the Soviet Zone is the.
lac% of adequate drydocking facilities. Other than the old floating
drydocks at the Neptun Werft, there are no means of drydocking
vessels of over 1,500 GRT. The graving docks at Wismar and
Warnemuende have been abandoned in their initial construction period
and the construction of large floating docks, has been cut down to
the immediate Soviet needs.
The financial strain placed on the East Germans by the large
reparations orders and the large investment programs has reduced the
financial status of the country to the point that projects are left
half finished for lack of funds. The system is such that the ship-
yards are continually working on borrowed money and each year finds
them operating at a deficit.
The controls exercised by the government are either so rigid
that the shipbuilding industry cannot operate smoothly or are so
poorly thought out that they are inefficient. The complex planning
and distribution system has adverse effects on the industry, since
the industry is very dependent on close coordination among all
producers.
? B. Vulnerabilities.
The shipbuilding industry is dependent, to Some extent, upon
imports of steel and component parts from the West. Both production
and repair would be delayed by a cut-,In these imports.
Other weaknesses are: (1) the two floating drydocks at the
Neptun Werft are. the only ones capable of drydocking medium-sized
vessels.; (2), the production of forged propeller shafts? is carried, on
principally by the Schwermaschinenbau Heinrich Rau in Wildallpand the
annealing of these shafts, is done by the steel works in Hennigsdorf;
(3) delivery of major components manufactured in the Berlin area
-38-
S-E-c-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
$
?
?
S-E-C-R-E-T
would be delayed by any disruption of rail service and highways leading
north; and (4) delays in the production of propulsion machinery at the
Diesel Motor Works in Rostock would affect the entire industry.
Any further lowering of the workers' morale can cause further,
slow-downs and in some cases the disruption of the program. Dissatis-
faction of the labor force with working conditions has already expressed
itself in sabotage of ship components and production facilities. Cable
delivered to the Warnowlierft from the Kabelwerk Obersptee was cleverly'
made with hidden defects. The ship Sovietsky Soyuz developed a 12-de-
gree list to starboard on 18 November 1953, when workers flooded the
engine room. 22/ A week later in Stralsund.a submarine, being repaired
on the marine railway, broke loose and caused more than one million
marks damage to the railway, r..(.2/
-39-
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
?
3-E-C-R-E-T
? _
APPENDIX A
GENERAL DESCRIPTION OF THE SHIPBUILDING INDUSTRY
I. Scope of the Shipbuilding Industry.
The shipbuilding industry includes the Construction and repair of
all waterborne vehicles and the production of components. The study
of the industry also involves an examination of the local plant ad-
ministration, the national political control, the research and
development involved in shipbuilding, and the ,economic factors that
influence the operation of the industry.
A. Design.
The determining factors in the formulation of the general
design characteristics of a planned vessel are.the services required
of the vessel, the size and speed needed to perform those services,
the propulsion machinery available, and the type of waters in Which
the vessel will operate.
To successfully design a vessel with the required cbaraCter,-
istics, the naval architect has e. large volume of data gleaned from
past 'experience by every branch of the shipbuilding and shipping in-
dustries. He also-Uses the'faCilities and technical experience of
private and governmental research and experimental stations equipped'
to make model tests of the hull and any or all of the individual
parts entering into the vessel. From these data, naval architects
and marine. engineers develop the final design.
B. Shipbuilding and Repair.
A ship is the largest piece of mobile machinery built. There-
fore, unlike most commodities:, the production of a ship requires the
skills and knowledge of rinny engineering fields.
The actual building or repair of a vessel takes place in a
shipyard having facilities to build or repair the specified type of
vessel. The modern large shipyard is a combination of a steel
fabrication plant, amechanical assembly plant, an electrical installa-
tion firm, and many other industrial enterprises. The shipyard is not
-
S,E,-C-R7E,41
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-c-R-E-T
a manufacturing plant in the true definition of the word but performs
a 'value added" type of operation usually of the job shop variety.
It is at this stage that shipbuilding calls upon the nation's indust-
rial production to fill the many orders for raw, semifinished, and
finished material that 'goes into the building of a vessel. Steel is
obtained in the form of plates and shapes which will be cut, formed,
and assembled into the required shape for the vessel's hull. Ma-
chinery, electrical apparatus, furniture, and many other Components
are obtained in varying stages of assembly, for installation in the
vessel's hull.
C. Component Production..
The production of components for the industry is carried on by
the normal manufacturers of civilian goods and by special plants pro-
ducing principally for the shipbuilding industry. This production is
vital to the satisfactory completion of a vessel.
D. Inspection and Classification.
During construction of a merchant vessel, inspection and
classification is usually accomplished by an independent organization
for the purpose of insuring compliance with governmental regulations
and insurance standards. The independent classification organizations
have set standards for hull and machinery. These. classification
organizations came into being because of the demands of marine in-'
surance companies and ship Operators for standards regulating the
design and measurement of vessels.. They may be governmental agencies
or privately owned firms.
The inspection of naval vessels is accomplished by navy.
engineers.
E. National Policy.
The dependence on foreign trade to. sustain the national
economy dictates, in a large measure, the national policy regarding
the ownership, operation, construction, and maintenance for the
merchant fleet. .Capital investment of private or public funds and
subsidization of the industry are largely determined by the national
policy.
S-E-C-R-E-T
_ _ _ _
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
?
?
?
The vulnerability of the nation's military defense through
water approaches, the protection of the merchant fleet, and national
aspirations dictate the national policy regarding the construction
and maintenance of a naval fleet.
II. Shipyards.
A. Definition of Ship Construction and Repair.
Merchant vessel.construction and repair involves the con-
struction or repair of all. sizes of vessels employed,in the movement
of cargo and/or passengers. This work includes such vessels as
passenger ships., tankers, dry, cargo vessels, fishing vessels, tug
boats, dredges, and barges.
Naval, vessel construction and repair involves the construc-
tion or repair of' all sizes of warships, naval auxiliary vessels,
troop support craft (either for naval or army units), hydrographic
vessels, and the like.
B. Classification of Shipyards.
Shipyards generally are divided into two classes.
1. Coastal shipyards build and/or repair vessels for ocean
navigation. These yards may. be located many miles from the open sea,
such location being dependent upon a sufficient depth and width of
channel to permit ready access to the sea.
2. Inland?shipyards build and/or repair vessels for opera-
tion upon inland waterways.
C. Ship Construction Procedures.
The basic shipyard is purely a steel erection and assembly
plant where steel plates, shapes, and bars are cut and shaped, and
assembled into the required hull form. The outfitting (installation
.of machinery, deck equipment, furniture, and the like) may be carried
on at this basic yard or at some other installation.
The method of constructing a vessel varies from one yard to
another, but general descriptions can be given as follows:
-43-
$-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
. S-E-C-R-E-T
I. Standard construction procedure involves the building of
a vessel from the keel'up.by erecting individual items or small sub-
assemblies in proper sequence. A great part of the hull may be in
place before any one section is completed.
2. The prefabrication procedure involves the building, of a
vessel by the erection of subassemblies which have been prefabricated
at some point other than on the shipbuilding ways. _This procedure is
generally divided into two separate and distinct practices. The
first and most common practice is the erection on or near the ship-
building-ways of subaSseMblies, none of which, however, form a com-
pleted-transverse section of the hull. These subassetblies usually
are lifted into place on the building ways. The second practice, com-
mon in some yards building small vessels, isAbe so-called sectional:
method. This method involves the joining together on the building
ways of 'completed transverse hull...sections. These completed sections
usually are not lifted into place but are moved on mobile- cradles or
skids to the ways where the several sections are joined together. ,
3. Serial construction (production line method) involves the
construction of a number of vessels of the same type ty use of the
prefabrication procedure with operations repeated at scheduled inter-
vals.
D. Description of Shipyards by Types,
a. Naval Shipyards.
Naval yards are operated by the governmental department
concerned with the construction, repair, and operation of naval
vessels. These yards generally have more facilities than -a commer-
cial yard because of the type of work handled on repairs and for
operational purposes of the fleet. Leaving out these special
purpose facilities, the naval shipyard is similar to the large com-
mercial Shipyards
The:naval'yard generally constructs vessels by 'the
standard or prefabrication procedure employing the subassembly method.
Generally the vessels are completely outfitted and made ready for sea
service within the yard.
' Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
2. Coastal Shipyards.
Coastal shipyards construct vessels for ocean transporta-
tion, coastal vessels, fishing vessels, and tugs. Depending upon the
extent of the facilities, the yards generally specialize in certain
sizes and types of vessels. The larger yards are complex plants
covering a wide range of trades.
The method of constructing Vessels is generally bythe
standard construction procedure or prefabrication procedure. Some of
the smaller yards use the serial production method when the quantity
of similar vessels to be built warrants the setting up of such
facilities.
Only when these yards are emergency or temporary shipyards
are the facilities at a bare minimum to perform the Construction of
certain vessels.
Repair work is carried on simultaneously with construction
at some of these yards. The larger yards have floating drydocks
and/or graving docks while the smaller installations have marine rail-
ways and/or floating drydocks for repair work.
3. Inland Shipyards.
Inland shipyards can be of the simplest form of a shipyard,
even to the extent that there are noperManent building ways. Here,
again, the type of work handled determines the extentand magnitude Of
facilities. Such yards construct barges, river towboats, tug boats,
miscellaneous commercial craft for special operations, and the like.
The smaller inland yards usually construct vessels by the
standard construction procedure. As the volume of work increases, the
construction procedure changes into the prefabricated subassembly and
the sectional method.? Inland craft is ideally suited for the sectional
method of construction; especially in caseof serial production. ? Very
often vessels are constructed on marine railways or adjacent to the
marine railway and launched by Such means.
Most of the inland shipyards -handle repair work to varying
degrees. The yards ?that have drydocking facilities such as marine-
railways or floating docks handle the complete repairs and others with-
out such facilities do topside and machinery repairs.
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
4. Ship Repair Yards.
Certain shipyards specialize only in vessel repairs. The
facilities of such yards are selected and laid out primRrily to
accommodate vessels to be repaired. Drydocking facilities consist of
morine railways and floating and graving drydocks. Equipment for
handling steel fabrication is limited, but the machine shops are well
equipped. This type of yard)while being strictly a repair yard)will
also fall within one of the types listed above.
E. Shipyard Facilities.
1. Shops,
The principal shops located in a shipyard vary over a
wide range depending upon the size and type of vessels built or re-
paired and the need for a self-supporting facility. /Depending upon
the size Of the shipyard, the shops will include the following special
installations either in separate buildings or combined in one or more
a. Mbld loft, where plants are laid down full size by the
loftsman from the blueprints for purposes of making templates (pat-
terns) for use of the steel trades.
, b. Plate shop, where steel plates are cut) beveled,
punched, and shaped by layer-out and shipfitter. This shop is some-
times referred to as a boiler shop.
c. Angle shop, where steel shapes are formed into the
curvature of the hull by anglesmiths. This involves heating the steel
shape and bending it 'to the determined shape on bending slabs.
d. Fabrication shop or structural shop, where steel
plates and shapes are joined together to form subassemblies of varying
sizes,)depending on the crane facilities and method of construction.
e. Rigging loft, where ships1 rigging is made by riggers.
The titles of other shops are self-explanatory, such as
carpenter shop, machine shop) foundry, forge, pipe shop, and paint
shop.
- 46
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
?
S-E-C-R-E-T
2. Special Facilities.
Certain other facilities are entirely peculiar, to a ship-
yard and will not be found elsewhere. These facilities are the actual
building ways and drydocking facilities, with installations as follows:
a. The building ways, longitudinal, refers to the space
where a vessel is constructed and includes the ground or stationary
ways and the sliding ways. They slope gently down toward the water
with sufficient slope to cause the vessel to move under the impulse
of gravity when disengaged from the holding appliance. The ways are
built perpendicular or at an angle to the shore line and the vessel is
launched stern first into the water.
b. The building ways, transverse, are similar to the
longitudinal building ways but lie parallel or at an angle to the shore
line from which the vessel is launched sideways into the-water.
c. The building basin is an excavation in the shore in
which vessels are built. In construction and lay-out, it is similar
to the graving dock, being provided with dock gates and a pumping plant
and differs principally from a graving dock in that the rate of pumping
out of the water is much slower.
d. The graving dock is an excavation in the shore, en-
closed by walls and a floor which usually are of concrete or stone
construction. Ships in need of cleaning or repair are floated in and
then the water pumped out)leaving the vessel resting on blocks. The
entrance is closed by some form of gates, either floating, swinging,
or sliding. This type of dock may be used for the construction of
vessels.
e. The marine railway includes a track) cradle, and
winch used to draw a ship out of the water and onto the bank for in-
spection and repair. The track extends far enough into the water for
the cradle to pass beneath the ship. The ship is brought to rest over
the cradle, which is then drawn onto the bank. A marine railway may
be either for hauling a vessel end ways (longitudinal way) or side
ways (transverse way), from the water. The difference is that the
transverse railway has more tracks and cradles and generally shorter
tracks than the longitudinal railway. They are sometimes utilized for
btilding of vessels.
- 47-
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
f, The floating drydoCk is a U-shaped floating struc-
ture of either wood, steel, or concrete, which is fitted with water-
tight compartments. It is submerged by flooding these compartments
and ships enter it while it is submerged. The compartments are then
pumped dry, and the dock rises until the ship is Completely out of
water. These docks are open at either one or both ends, usually the
latter.
g. 'The fitting Cut pier-(dock or quay) is a pier at
which the Vessel is moored after launching for the final installation
of components and testing. This amount of work may vary Over a Vide
range>depending upon the procedures followed by the individual ship-
yard. These facilities are also utilized for "above water" or l"top-
side" repairs and machinery repairs.
F. Personnel.
The modern large shipyard requires the services of many people
trained and experienced in the fields of business, law, engineering,
and numerous industrial trades. Tbtal employees may number from a
dozen or so in a small yard to over 15,000,in a large yard. A typical
list of the trades involved is:
Anglegmith
Blacksmith
Boilermaker
Bolter and reamer
Brazet
Burner
Caulker and chipper
Designer
Draftsman
Carpenter
Coppersmith
Driller
Electrician
Erector
Fitter
Furnaceman
Grinder
Insulator
Joiner
Layer-out
;ofteman-
Machinist-outside
Painter
Passer
? Pipe coverer
Pipe fitter
Press operator
Puncher
Rigger
Riveter
Sheetmetal worker"-
Shearman
Shipfitter
Welder
, Also employed an production are laborers, helpers'; apprentices,
and the- like.. The nonproductive trades include maintenance men, store-
keepers, truck'drivers? crane operators, and' the like.
- 48 -
?S-E-C-E-E-T
_ _ _ _
1.
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
' Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
?
*
?
III. Ship Component Production.
A. Scope of Work.
A standard merchant vessel requires approximately 7,000
different Items) including such standard items as curtains, medical
supplies and kitchen equipment and such specialized items as marine
engines, anchors, booms,- and compasses.
B. Commercial Components.
The standard goods flowing into a shipyard are about as
varied as the equipment needed to supply any small community but rep-
resent only a small percentage of this type of goods produced by a
manufacturer.
C. Marine Components.
Components that are classed as specialized marine items for
ships fall into two categories, that is, standard marine parts and items
specially designed for the operation required on the vessel on which
they are to be used. Such design work is started as soon as the naval
architect has reached the stage in the hull design and calculations
where he can supply the marine engineers with the necessary specifica-
tions.
D. Component Producers.
Components generally are produced by a nation's own industrial
plants. Some of the larger shipyards have auxiliary shops capable of
building specially designed marine parts. In small countries, however,
it may be necessary to import many vital components without which
vessels could not be completed.
- 49 -
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
o
S-E-C-R-E-T
APPENDIX B
METHODOLOGY
The general methods employed in this report are based upon
standard shipbuilding practices whenever such calculations were re-
quired. If possible, the methods .set forth in documentary reports
and East German periodicals were 'employed wherever they could be
applied. This latter method Carries with it a 'certain amount of
the optimistic planning by the German engineers.
. Two items, cast iron and kilowatt-hours, appear to be low in
quantity but are based upon the best information available.
- Individual methodologies are explained below, referring to their
proper sections:
V. , Input Requirements.
A. Raw Materials.
The summary of internal consumption given in Table 9 is the
combining of all items made of steel, copper and copper base products,
aluminum, and the like, under single headings. Since this material
covered only that purchased by the shipyard, however, a method had to
be devised to compute the material entering into the components. An
individual listing of such components with their respective material
would be a very tedious undertaking and the results very uncertain as
to accuracy, Therefore, a. relationship between tbe-steel_purchased)by
the-sh4pyard (by far thelargest raw material In bbth the hull and
components) andtheweights_pf other material and the completesel
was determined as a fair basis of evaluation. The relationships of
certain East German vessels are known, and from these were derived the
figures given in Table 12.*
To .determine whether the factors were standard, the following
vessels With known inputs ?.1./ were listed and faCtoradetermined as
shown in Table 1.3.**
* Table 12 follows on p. 52.
** Table 13 follows on p. 52,
-51-
-
I Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
_
Table 12
Estimated Ratios of Weight of Steel to Weight or Completed Vessel
by Types 112/
1
2
3
Weight ?I
Completed
2
3
2-3
Vessel
Steel
'
GRT
(Tons)
(Tons)
1
1
2
2
Trawler
650
610
352
0.54
0.94
0.58
0.42
Logger
400
300
224
0.56
0.75
0.75
0.25
Cutter - Steel
52
45
22
0.43
0.87
0.49
0.51
Cutter - Wood
55
45
9.4
0.17
0.87
0.21
0.79
Freighter, Type I
1,100
800
465
0.42
0-.73
0.58
0.42
Freighter, Type II
2,080
1,775
1,140
0.55
0.85
0.64
0.36
Freighter, Type III
4,050
3,190
2,180
0.54
0.79
0.68
0.32
Freighter, Type IV
6,800
5,750
4,100
0.60
0.85
0.71
0.29
Seiner
200
150
127.7
0.64
0.75
0.85
0.14
Totals and Averages
15,387
12,665
8L 62o a.
--2--
0.56
0.82
0.68
0.32
Table 13
Known Ratios of Weight of Steel to Weight of Completed Vessel
by Types
Type
2
Weight of
Completed
Vessel
(Tons)
:
3.
Weight of Weight of
Invoiced Wood and
Steel Machinery
(Tons) ,---Crons)
Ratio
90-Foot Tug
58*
91
0.35
0.514
152-Foot Steamer
598
230
194
0.58
0.48
253-Foot Lake Steamer
1,097
812
340
0.74
0.30
205-Foot Tanker
830
550
317.
0.66
0.38
168-Foot Self-Propelled
Barge
)32
344
208
0.65
0.39
190-Foot Pump Barge500
404
114
0.81
0.23
Ice Breaker - 140-Foot
710
443
313
0.62
0.44
Total and Averages
4,210
2,814.1'a/,
1,577
0.67
0.37
)
Includes scrap.
- 52
-
\?
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
These figures showed that the ratios between East German Ships and
other ships were approximately the same'. Therefore, the. factors of
0.68 and 0.32 shown in columns 7 and 8 have been used to determine the
inputs into components and the inputs into the shipyard proper. That
is:
1. weight of completed vessel - shipyard steel weight = 0.32
weight of completed vessel
2. weight of completed vessel x 0.32 = component weight
3. individual shipyard item weight = total weight of individual
item
0.68
There are errors in this method that would appear very great
in the United States but are not so great in East Germany. Since
copper is very scarce, galvanized steel is used wherever possible as
a substitute. Propellers are made of steel castings instead of bronze
castings as in this country. Substituting of steel for copper is
applied to other raw materials as well.
C. Manpower.
The manpower figures are those reported by the various ship-
yards for their end of the operation or by the ministry covering the
shipyards. To determine the manpower required by the components in-
dustry, the Department of Commerce, Census of Manufactures, Volume II,
for 1947 was employed. The salary and wages paid in selected indus-
tries were averaged, and a percentage obtained of this value against
the total value of production shipped. This percentage was 31.6 per-
cent. The industries chosen as most nearly representing the component
industry were plumbing, heating and cooking, sheet metal, boiler shop
production, structural,parts, barrels and drums, steam engines and
turbines, internal combustion engines and metalworking machinery.
To determine the mark value of the components, the 1953 costs
were used as follows 83/:
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Thousand DME
Sale Value 231,200
Shipyard Costs - 90,400
Difference 140,800
10 Percent Profit - 23,120
Value of Components 117,680
This value times 31.6 percent gave a value of labor of 37,186,900 DME
for 1953. The average wage of the shipyard trades for May 1953 84/
was 4o4 DME per worker. This value times 12 gives a yearly wage of
4,848 DME. Dividing 37,186,900 by this wage gives a total number of
employees of 7,670 for the components in 1953. The ratio of this
labor to the shipyard labor (0.138) was applied to the shipyard labor
for each of the other years to obtain labor in the component industry
for those years.
D. Electric Power.
The electric power consumption for the shipyards was determined
from meagre information. The power consumption for a few months in
1950 and 1951 is given for a few yards and for 1953. 85/ These values
were extended to cover a full year. The sum of these figures divided
by the production by these same shipyards for the same years shows the
following relationships:
1950 1,513,200 kwh = 252 kwh per GRT
6,000 GRT
1951 26,529_1632 kwh =.495 kwh per GRT.
53,627 GRT
1953 42,300000 kwh 258 kWh per GRT
163,977
Reports for 1951 included the Mathias Thesen Werft, Warnow Werft, and ,
Neptun Werft. These first two yards were engaged 100 percent in repair
work and part of the third's production were repairs. Therefore the
--54:
S-E-Q-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
full kilowatt-hours of the first two yards and one-fourth of the kilo-
watt-hours for the third were deducted. With these deductions, the
result was 242 kwh per GRT for 1951. The average of these figures
was 250 kwh per GRT, which figure has been used. This amount times
the GRT compiled from the production of the shipyards gives the ship-
yard electric power consumption for new construction.
The value deducted for repairs in 1951 was 13,537,536 kwh.
This value was increased by 4o percent to allow for work on components,
overhauling of machinery, foreign docking, and the like, all of which
was carried on outside the shipyard. This gave a rate of 18,952,000
kwh for repairs per year.
The above method of computing the kilowatt-hours for the ship-
yards checks very well with a very complete report received after the
above calculations were made. 86/ This report, covering the 19 VEB
plants, gives the kilowatt-hours between 1 January 1953 and 31 July
1953 as 28,3571000 kwh. The values shown above for the year are:
Repair Work 13,537,000 kwh
New Construction 50,626,000 kwh
Total 64,163,000 kwh
Eighty-two percent of this figurer (according to the scheduled reduc-
tion of the original program) gives a yearly consumption of
52,614,000 kwh. This value prorated for the seven months is
30,691,000 kwh. Since this latter figure covers all the shipyards, it
1eaves'2,334,000 kwh for the minor shipyards and for being behind
schedule in production, as indicated in the subject report.
The component kilowatt-hours were based on the difference in
steel weight for 1953 from Table 9.
Shipyard Steel:.
Component- Steel
Total
58,511.3 x 1,100 kwh
202,000 GRT
-55-
124,357 Tons
58,543 Tons
182,900 Tons
= 320 kwh per GRT. ?
S-E7C-R4-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
F. Financial Inputs.
The compilation of'capital investments. for the period from
1951 through 1955 is shown 41 Table 14.
Table 14
Summary of Capital Investments in the Shipbuilding Industry
1951-55
Thousand DME
Five Year Revised Summation of Plant
,
Year Plan 87/ Estimate 88/ Studies
1951
12,877
68,300
70,500
1952
13,707
82,000
76,816
1953
18,864
76,000
113,737
1954
18,825
36,000
30,200
1955
20,592
16,000
12,000
Total
81i,865
278,300
303,253
On the basis of the revised figures prepared by the HVS at the end of
1952, the increase in ship construction from 1951 through 1955 would
be 273,315,000 DNE)and the investments for the same period would be
278,300,000 DME. This is equal to 0.98 DNE of ship construction for
each DME of invested capital. The Five Year Plan on the same basis
shows a ratio of 4.35 DME of ship construction per DME of capital in-
vestment (369,096,000 DME of production and 8)-i-,865,000 DME of invest-
ments. 89/) However, the Five Year Plan was developed under overly
optimistic planning and a different production schedule, that is,
fewer types of vessels and more mass production.
The Engineers' Collective made a study of the industry in 1951
for the basis on which to do Planning. 90/ This study gives the
figures shown in Table 15.*
Table 15 follows on p. 57.
-56-
S-E=C-R,E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
, Declassified in Part Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
S-E-C-R-E-T
? ? ? ? ? ?
Table 15
Engineers' Collective Study of Sales and Invested Capital
1951
Shipyard
Invested
Capital
Thousand DME)
Turnover
(Thousand DME)
Ratio of
Turnover to
Invested Capital
Mathias The sen
Werft
108,636
21,400
0.197
Warnow Werft
115,540
31,400
0.272
Volkswerft
Stralsund
26,300
67,500
2.570
Elbewerft
5,700
30,800
5.400
. Volkswerft "Ernst
Thaelmann"
4,800
23,600
4.920
Staatswerft
Rothensee
2,550
14,300
5.610
Rosslauer
Schiffswerft
5,800
34,800
6.000
?
Schiffswerft
Uebigau
2,200
9,000
4,090
Total
271,526
232,800,
0.857
This ratio of turnover to invested capital compares favorably
with the figure of 0.98 arrived at above)when it is considered that in
1951 all facilities in a plant were not used to their utmost.
On the basis of production capabilities for the 14 major ship-
yards for 1953 of 600,730,000 DME and 788 million DME for 1955 91/
and the factor 0.98, a capital investment for new construction of
613 million DME and 804 million raym for 1953 and 1955, respectively,
is obtained for these 14 shipyards. The only major shipyard not in-
cluded in this list is the Peenewerft, for which a total investment of
24,526,000 DME is planned. 22/ Assuming a capitalization of 10 mil-
lion DME for all other yards)a total of 647 million DME for 1953 and
of 840 million DME for 1955 is derived as capital investment.
-57-
S-E-C-R-E-T
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
50X1
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
R
Next 5 Page(s) In Document Denied
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
???
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2
?
SECRET
SECRET
50X1
? 50X1;
Declassified in Part - Sanitized Copy Approved for Release 2013/05/28: CIA-RDP79R01141A000400030001-2