RUMANIA LOWERS GOAL FOR SYNTHETIC RUBBER AFTER FAILING TO GET US PLANT - - - - AUGUST 1965 (CONFIDENTIAL)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01003A002300190002-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 7
• Document Creation Date: December 12, 2016
• Document Release Date: January 31, 2002
• Sequence Number: 2
• Content Type: LIST

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SINTBETIO R1JB8E GOAL
0 TOQV PLAN FROM THE US
5 August 1965
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RUMANIA LOWERS 3TNTHETIC RUBBER GOAL
AFTER FAILING TO GET PLANT FROM THE US
Rumania has cut back its 1970 Plan for production of synthetic rubber
because of failure to obtain a plant from the US. Under the new Five Tear
Plan (1966-70), the goal for synthetic rubber production in 1970 has been
reduced to 60,000 tons from earlier proposals: for over 100,000 tons. Althouch
apparently
the Rumanians are still interested in buying a synthetic rubber complex, they/
have uded that the delay in acquiring new facilities will prevent the
output of synthetic rubber in 1970 from rising much beyond the rated capacity
of existing plant. The reduction in the goal for domestic production of
synthetic rubber in 1970 may have forced the Rumanians to scale down goals
for production of rubber goods, notably tires.
Rump:Ala, 04Aput of SvAthetic,Rubber
In 1964 Rumania produced about 19,400 tons of synthetic rubber, of
which 6,600 tons was exported. The remainder -- almost 13,000 tons -- comprised
about one-third of the
al rubber consumed for the manufacture of tires and
other rubber products. Imports, chiefly of natural rubber,were needed to
meet residual requirements. Rumania's sole producing facility a plant at
Gbeorghe Cheroghiu4ej -- has operated well below its rated annual capacity
of 50,000 metric tons since start-up in 1963.
Moreover., the type of
synthetic rubber produced, styrene-butadiene, is inferior to natural rubber
in such uses as heavy-duty truck and aircraft tires.
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ly as 1960 Rumania was considering expansion of the v? 1e of
and aesortneflt of synthetic rubbers, not only to
dependence on imports but to provide a signifioant surplus for e
In 196, ROMA& first ennounced its intention of purchasing a complex from
the U.S. to produce polyisoprene M polYbutadiene, two
rubbers.* .1/ Although the USSR produoes '4',i ted quantities of the new
types
Rumania apparently preferred to seek the required
Free World. Poland Czechoslovak
have eXDreBe Interest in
Rumania
ed to the DS a list
ziodern atrial plants, headed by a
propo
en e U
purchases of
5:city for
pro4ution of 60,000 tone of polybutadiene and polyisoprene. With the
addttion1 capacity, Rumania reportedly would fully meet doe requiremen
and have an exportable surplus. Following negotiations with several US
firms, the Rumanians initialed a llion eont!'sct in ecember 1964 with
the ?iestone Tire and Rubber Company for purohase of the rubber complex.
in Pril i965 Firestone abruptly withdrew its otter, citing fears of
in the US market :stemming from Mvezae publicity by a majo
ecpetitor and by groups opposed to trade with Comm=
This
failure to obtain the vitally needed complex came at a time when Rumania's
* The term "stereore ar rubber" applies to polymers developed recently, in
hich the molecular structure and properties closely resemble those of natural
rubber.
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new 5 Tear Plan for 1966-70 wae in the f1rift1 stages of preparation.
planner
prospect of producing etereor.gular rubber,Rumanian
r in 1970 to
60,000 tons, as compared to the level of more than 100,000 tone proposed
earlier. The new goal only slightly higher than the rated capacity of
the existing plant. Koreover the increase planned for synthetic rubber
during 966-.70 cent -- is significantly below the increaseof 130
percent planned for chenicale as a whole. 2/ Inasmuch as the bulk of the
rubber produced in 1970 will be butadiene-styrene, Rumania will still require
imports natural rubber. The extent of such imports cannot presently be
determined because information is lacking on Rumania's trade plans. Details
of Rumania'ssupply position in 1963-64 and available date on plans for 1965
and 1970 are shown in Table 1, below.
ve reduced the goal for production of syntho
Table
Rumania' s Rubber SupplSituationy
1963-'64 and Plana for 1965 and 1970
Metric To
Rubberproduction
20
5,906
126A
19,373
191212,1=
35,000
1970 Plan
60?000
Xmports Synthetic
16,800
5,400
N.A.
N.A.
Natural
19,200
22,300
N.A.
N.A.
Total supply
41,906
47,073
N.A.
N.A.
Exports - synthetic
1,100
6,591
N.A4
i
N.A.
Estimated rubber consumption
40,806
40,482
45,00Q
65,000
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The reduced goal for production of synthetic rubber in 1970 probably
has affected Rumanian goals for rubber products, particularly tires.
Aocordirtg to the new plan, output of tires, scheduled to be 1.3 million in 1965,
increasewill less than 50 percent during 1966.70, as ccpared to the increase
of 270 percent in 1960-64. It now seams unlikely that Rumania will proceed
with earlier efforts to acquire another tire plant but will rely instead
on expanding its two existing plants.
itammtst
In spite of the recent experience with Firestone, Rumania-is 11
omitted t
the further expansion and improvement o
complex for stereoregular rubber remains high on Ret
her industry. The
of priority
projects and efforts presumably will be renewed to find a supplier. Rumania's
prospects for obtaining such a plant from the US may improve as a result of a
recent White Rouse statement that such transactions are in the nstonl
interest. Although the US probably is in the best position to provide
Rumania with the type- of plant desired, other potential suppliers also 'exist
in Western Europe. The delay already ecnountered by Rumania suggest however,
that even if a new contract is successfully negotiated, production of synthetic
rubber in 1970 will not reach the level hoped for earlier.
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