SANITIZED)1. BRIEF SURVEYS OF THE RUBBER, CHEMICAL, AND METAL INDUSTRIES 2. GENERAL ECONOMIC DATA(SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80T00246A033300410001-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 24
• Document Creation Date: December 22, 2016
• Document Release Date: April 2, 2010
• Sequence Number: 1
• Publication Date: March 19, 1957
• Content Type: REPORT

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PR? 9SfN CO'Py
CENTRAL INTELLIGENCE AGENCY
This material contains information affecting the National Defense of the United States within the meaning of. the Espionage Laws, Title
18, U.S.C. Secs. 793 and 794, the transmission or revelation of which in any manner to an unauthorized person is prohibited by law.
DATE OF
INFO.
PLACE &
DATE ACQ.
1. Brief Surveys of the Rubber,
Chemical, and Metal Industries
DATE DISTR. 19 March 1957
NO. PAGES
REQUIREMENT
NO. RD
covering the following subjects:
a. The Hungarian Rubber Industry prior to the Disorders of October 1956
b. Hungarian Chemical Industry
c. Survey of Metallurgical Industry
d. Miscellaneous Economic Data on Hungary
25X1
STATE X ARMY I X INAVY X AIR
XiFBI AEC
I-A
ORR X
25X1
1101 ",VkqA V,'%JW4I M8
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COUNTRY : HUN
The Hungarian Rubber Indus try prior to the Disorders of
October, 1956.
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I-IUNC LRY
Economic
The Hungarian Rubber Industry prior to the disorders
of October 1956
Throughout 1955, the agreement
for the importation of natural rubber
into HU1ARY
was operating satisfactorily and considerable quantities of natural
rubber were, in fact, imported. . In 1956, however, the quantity the
were willing to export to HU t ARY was grea-0,y reduced,,
with the result that, in the second half of this year, ports of
virtually ceased.
2, This situation induced the Hungarian authorities to send
Hungarian Trade Delegates
on two separate occasions
during 1956, with the primary object of obtaining increased supplies
of natural rubber. However, (proved unyrielding and
these missions consequently proved abortive.
3. Three years ago, the Hungarian Government had already drawn up
a plan for the establishment of a new Hungarian chemical plant, which
was to have provided employment for several thousand Hungarian
workers. This new plant was also to have included a special Department
charged with the task of creating and developing an Hungarian
synthetic rubber industry. Thos enterprise, as conceived in the
original plan, was to have been established at RMR. However,
despite the passage of.years, the project still remains in the
planning stage and the work involved in constructing the new plant has
not even been started. Indeed, even prior to the outbreak of the
recent disorders in HUlv&ARY., it was anticipated that actual construction
work on the new plant would not he inilted within the next two years.
1+.
No new carbon black plants have recently been'put into operation
in HUNGARY. As regards current output, the carbon black manufactured
r
at the MAORT factory near LISP- is of very bad quality,, so that
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HUI'IGARY is obliged to import considerable quantities of active,
semi-active and also a small. quantity of inactive carbon black. Until
1956, Hungarian imports of carbon black were mainly obtained from
ROUM NIA but, in 1956, I U1 ARY also began to import carbon black from
YUGOS:I,AVIA. Imports from this quarter began during the second and
third quarters of 1956, when about 1+00 tons of carbon black, was
obtained from YUGOSLAVIA.
5. In 1956, the Rubber Products Plant in BUDAPEST began to be
converted into a rubber factory, producing only heavy teoimical and
industrial rubber products. This arrangement will continue during
1957. The manufacture of all other Hungarian rubber goods (e.g. ebonite,
latex products and rubber toys, etc.) will be t'ran;ferred to the
following three alternative rubber factories, which at present exist
in I_:UIGARY:-
(i) NAGB E NY Rubber Factory.
(ii) MJS?~I GU1EGYAR (Mechanical Rubber Factory)
UJHEGYIQ UT
BUDAPEST - KoBAT
(iii) AUTOKEN11A Rubber Factory,
SVETEI1AI UTCJL
BUDAPEST.
6. There have been no new rubber plants constructed in
HUNGi RY since 1955 .
S ETC Hj
LJ u U E~
' Fl
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t;VUlvtni rnroARY* ? `~I ~J
H lmn Chemical Industry*
f .r
25X1
REMARKS:'
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HUNGARI
Eoonomie/Scientific
HUNGARIAN CHEtICAL INDUSTRY
3. Although lost of the buildings have been completed
and the plant already installed, the chemical factory at
KAZINCBARCIKA is not yet in full production. =Cne of the main
difficulties appears to be the fixing of norms satisfactory to
both workers and management. Until Octobers 1956, production
was at only an estimated 15% of capacity#
oxygen and artificial fertiliser,
2. A large factory is being constructed near TISZA-
PALKONYA:,t about 70 kms N.E. of SZOLNOK. When completed, it will
manufacture P.V.C. with the use of natural gas imported from
ROUN OLI.
3, A new chemical plant has been built at StIJOBABONY.
Wcrk was started in 195L and all construction work is now coin"
pleted, but the factory is not yet in full production. It is
designed to produce
a. Mustard gas (in production)
Choking or nerve gases (in production)
(not yet in production)
d. Rubber (not yet in production),
4+ At present the factory employs a little over 2000
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people) but when it is in -full production, it will employ over
3,000, By-products of the factory will go to the BORSED
Chemical Combine at KAZINCBILRCIKA for the manufacture of
fertilisers,
5.
Considerable diffibii"ty has been met in the
construction of a turbo4electric power plant to supply the
factory. A number of dams were, built, but eventually the
project was abandoned and a conventional steam turbine power
station was installed, fired by brown coals and was served by
a single turbine/generator. This also proved a failure, and the
factory now imports its power from CZECHOSLOVAKLL. The furnaces p
built to serve the steam turbine, are being used to produce
steam for various chemical processes in the factory and heating.
6. Attached at Appendix 'til is a sketch plan of the
factory layout. Alrl the buildings are arranged in valleys and
actually built into the hillsides, with earthworks thrown up in
front ofi the entrances.
At BALATON FUZFOS, a sister factory of S1JOBABONY
is mainly employed on the production of high explosives, but
also produces insulating materials such as glass wool.
8.
A new explosives factory is under construction at
DUNL PJ TELE and known by the cover name of SZJ IiIL .0ELUZOZE. it
is planned to start production there in 1957 and approximately
400 workers will be employed.
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0ISONGAS PLANT
AT I
S A J b B A B O N Y
General Sketch
of Buildings
(Built into
Mountainside with
Earthwork in Front)
MKOIC
Valley E
~ ~ or
Endproduc
Approx:
' r uu
\_ Buildings
Valley C
Poisongas
actory
Approx:
25
B ildings,
.rx .(
. 4i
----~----'-
Valley B
Sane as
under
~
Bailerhouse
f P rerstati_on
Construction Works Offices
7orkshops
Valley A
Preliminary
Processing
.Section and
Raw Material
:)tones
4AJOB.ALONY
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COUNTRY: NT)=r^ PV_ L, - x.1'1 i '>
1w &.-V Lzmw . IL 116m a
Survey of rdetallurgical Industry.
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HUNGARY
Economic.
Survey of Metallurgical Industry
I MISCELLANEOUS ECONOMIC INFORMATION.
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During the revolt the workers were paid up to the
4th November when the Government decreed that only those reporting
to factories could draw wages. Consequently the workers
reportei for duty, drew their pay and did no work. Throughout
the revolt the food industry kept working. The Trade Unions
played no part and had no influence In the revolt as they were
entirely Communist controlled.
At present Hungary is not short of technicians. A
large scale training programme was initiated in 1949 and now-
there is a surplus of skilled personnel in some fields. Tn.
1938-1939 there were approximately 2,500 trainees and. the present
figure is roughly 10,000 End in the metallurgical industry
for example, many of the top men are unskilled (appointed by
the Party) with a lot of trained technicians holding junior posts.
For these there is little prospect of immodiato promotion..
100% of the me tallurg ical coke
consumed in Hungary has to be imported. It is principally for
this reason that stool produced. in Hungary and valued a. t. '. forint
costs i. 28 for in is to make. this is an 25X1
official figure.
The sho.rLage of electric power is a result of the
scarcity of c oa:l and oil, and the inadequate rate of construction
of now power stations during the first Fide Year Plan. In
particular the rapid growth of the machine tool industry.
outstripped supplies of materials and of power.
Electric stool is made at CSEPEL, KOBANYA (the old
Hubert-and Sigmund works), BORSADNADOSD (which makes transformer
and dynamo stool) and DI OSGYOR.
Tungsten Carbide was first made in the Hubert Sigmund
works KOBANYA (tool tip production thorn has now stopped and the
works is at present making high alloy stools and permanent
magnets). Some time after 1954 a now factory was founded for
Tungston Carbide .production using imported Wolfram. This new
plant is entirely for sinterod carbide tools, drawing dies and
cutting tools etc.
II ALUMINIUM.
(a) BAUXITE.
on the. subject of Bauxite mining 25X1
the main centres are at TAPOLCA, NYIRAD, GANT~
and ISZKAZENTGYORGY, The g3nora l quality of Bauxite is decreasing
and the Silica content is increasing. During the second Five
Year Plan the combination process for the treatment of these
or.es..is to bf introduced in some works.
(b) ALUMINA.
Only three plants are manufacturing Alumina, those are
at MAGYAROVAR, AJKA and ALD.7ASFUZITO.
(c) CRYOLI TE.
The greater part of Hungarian requirements is imported,
mos tlv f'rnm tYin TT_ q q R n f+-nom., + 1-
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Cryolite in Hungary
(d) ELECTRODES.
Those are imported from tho U. ,3. S. R.' though attempts
to manufacture them in Hungary from imported material are being
(o) RED MUD.
The extraction of Titanium and Vanadium from Rod Mud
is, in its very early stages. The extraction of Titanium has
been carried out at Budapest University by. Professor GELLEMOT
but the amount produced so far has only been 2 Kilograms. The
extraction of Vanadium is carried out a t Magyarovar. The use
of Mud as an iron ore has been much discussed but,little has
been done.
1951 production amounted to 21,000 tons.
The three plants producing Aluminium Ingots are TAT~~ ANYA, 25X1
A MI and INOTA : -
(i) TATABANYA
At Ta tabanya the old electrolysis shops are
housed in two buildings: the current used is 2 0-25, 000 amps.
The shops are equipped with very good German rectifiers
installed during World War II (no further details). A now
electrol-sis unit was opened in about 1949-19501 It is
parallel, but to the East of the other two and contains four
rows. of pots. The whole shop is wider than either of the old
ones, is about the same length and conta ns bigger cells using
an.amporago of 50,000. production between
11-12, 000 tons a year. Some super-pure aluminium is made for
condenser coils and chemical equipment.
(ii) AJ}Q
its production about the same as TATABANYA.
(iii) INOTA
The CSEPEL Aluminium works was demolished in 1947.
Under the. Fiver Year Plan expansion of Aluminium production is
to be under taken at INOTA alone. No new plans are envisaged.
III PROCESSING OF NON FERROUS METALS IN HUNGARY
the cells are very large and work at 25X1
50,000 amps.
These works came into production about 1954 hit
experienced many difficulties, the rectifiers supplied by the
Czechs broke down at an early stage. The generators at the
INOTA power station broke down in 1954 and wore out of action
for three months.
approximatel
20
000 t
f
y
,
ons o
Aluminium 'is worked in Hungary, the remainder being exported to
Poland (in exc.lange for zinc), to the U.S.S.R., to Czechoslovakia,
and some small amounts to other countries as virgin metal.
SZEKESFERHERVAR Light Metals Works (see Sketches I and II).
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sheet extrusions rind w 1.re, ma inl-r in pure aluminium but about
5% in aluminium alloys. Much of the pure aluminium sheet is sent
to the U.S.S.R.
The equipment consists of Rolling Mills an Extrusion
Press and Drawing Bonchos. The principal unit is a 2-High
hot mill non-hoversing, made by SKODk since the war with a
barrel length of between 2ADO-2;500..mm; it is equipped with
lifting tables and rolls shoe is ,-~I' thick. Four cold mills
are attached to the same drive, two are 3-High mills by
SKOD/; and two are 2-High mills. Situated to one side of these
mills is another set of cold mills, 2-High, with two or three
stands by ACHENBACHER: all these mills roll sheets. In the
same bay are two 4-High mills built by SKODA and originally
destined for U.S.S.R. which roll strip of a maximum width
of 200 mm. and a minimum thickness of 0.1 mm.
tho furnaces
were designed for DURALUMIN for aircraft during the war.,
Adjoining the r?oling mill is a foundry where ingots
from other works are ron Lod and alloyed where necessary. The
equipment consists of one induction furnace, two or three
electric molting furnaces end four semi-continuous casting
furnaces for casting ingots to ,i size suitable for rolling
or extruding.
The extrusion shop contains one press of 2,500 tons,
several drawing benches and wire drawing machines. The last
are not of a gioat csipacity. This shop manufactures sections,
tubes for cable sheathing, and thick wire of approximately
'2 mm. in diameter.
The small forging shop near thn~ main offices manufactured
ammunition caps of approximately 12`1 In diameter but the
size of tho projectile was unknown. Production. was very small.
The alloys ma..e at this works were as follows-.-
.(I) DURAL Types containing 4% copper, % or if
magnes ium, and tho balance aluminium, to
Russian specifications. These alloys were not,
only.
strong enough for 25X1
used for aircraft repairs
(ii) Aluminium-TiMagne s ium containing 4% Magnesium
and used in shipbul.lding.
(iii) Aluminium_Mapnesium-Silicon a corrosion, resistant
a o Y.
(iv) Aluminium-Manganese used for structural
,purposes e.g. buses and trains.
Manganese from U.S.
in 1955 at T!,TABANYA but
contained too much iron.
the copper used was imported
and Silicon came from U.S.S.R.. the
bomo ailico-Aluminium was made
was not of good quality as it
KO BAN YA
The probable location of this works is 47028154"N,
19007111"E. This works has ingot casting equipment which is also
used for -adding alloying materia,,is' vuhon necessary; it comprises
one gas fired furnace, one electric furnace and one semi-
continuous casting machine.
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In the Rolling Mill there is a 2-High hot breakdown
mill with a barrel length of about.1,250 mm. and a roll
diameter of 7O0 imri. Production is roughl`, 500 to 600 tons a month.
Thera are four or five cold rolling mills, 2-High of German
origin and installed at the boginn..ng of World War I. Those
produce sheet. There arc two more 2-High mills for rolling
narrow strip, and they produce about 500 tons per month.
A hydraulic extrusion press exerting 1,500 tons
pressure is used for sections and some tubes.
There are a few drawing benches and wire-
drawing machines, the latter producing medium wire.
The Robertson _foll mill has only recently boon
installed and is yet yet working well. It consists of two
2-High mills. There is also one 4-High mill built by SKODA
atad designed for tinfoil but at present being used to roll
down the aluminium foil from 4 mm. In thickness to 0.45 mm.
VAC Non-Ferrous Metal Rolling Mill.
This works does not possess a foundry and therefore
cannot alloy ingots. It makes only zinc and pure Aluminium
sheetv... The amount of zinc rolled is not known but it is very
small and is used only for batteries and printing purposes.
The production of aluminium shoot is about 100 to 150 tons
per month. The, works has two 2-High cold rolling mills be th
old and steam driven. A now shop has boon built for pormalloy,
forrito and sintered ccros for radio coils; eventually the
plant will work solely for the communications industry.
NACTYTETENY "Mo ta.llochemia "- Works.
This plant is located at 4702315511N, 18058' 20"E and
produces metal salts, FeSO4, lithopone, rod load, zinc oxide
and treats lion-ferrous scrap, chiefly copper-based scrape
For processing scrap the woks has two vater-jacket
furnaces of medium size, two converters of the 'Pierce-Smith
type, two oil fired furnaces with fiat circular hearths and
capacities of one and three, tons respectively. Primary scrap
of 45/ copper content is supplied by CSEPEL; other non-ferrous
scrap contaminated and of mixed content is drawn from all
sources.
The poor sc-ap is troa;tod in the water-jacket furnaces
to obtain black copper 80 to 85% coppeZI
This t o g ith 25X1
the better scrap is theh treated in the converters and the
blister is cast into anodes and sent to CSEPEL. All the
alloying materials - e.g. Tin, Zinc, etc are collected in a
Bag house and from this the elements are recovered and used
chiefly for undercoat paints.
Some or:; from R ASK, the only' copper deposit in
Hungary, is also processed in the water-jacket furnaces. This
is used to make anodes and is also sent to CSEPEL where the
gold and silver in it is recovered.
Copper based scrap which is fairly clean is separated
and cast directly into bars of brass and Rohguss (for bearings)
and is sent to her works. Tin and leadbase alloy scrap
is also treated.
AKER (Old Name).-
Location not known but between Budapest and U jpeet. A
little works with oil fired furnaces to process tin and leadbase
scrap and accumulator lead.
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REZHENGERM Rolling Mills,
Located in PARIVI NY Ut. (No map available ),
An old works from CHAUDOIR (France) built perhaps in
World War I or thereabouts; it was an old rival. of the.
CSEPEL works.
Reconstructed attar World War II to make ammunition.
It has a small ingot casting shop with three or four low
frequency induction furnace (AJAX-WYATT) for casting copper-
based ingots and rolling mills for shoots (hot and cold), narrow
strip and wire. The shoot mills have two or three stands and
also roll material for hot strip. The wire mill has five
stands.Strip a rolled on several 2-High mills. Drawing
facilities exist for drawing wire and. rod. In the now Five
Year Plan several punching and drawing machines are to be
installed. Output is not known.
lMAGYAR KABELGYAR(or BUDAPEST K/BELGYI,R).
(formerly f01F--GUIL UR4E Vilcrks .
This works is located at 4762712811N, 19003'13"E and
produces cables and wire for the Electrical Industry for-
Tolecommunicati.ons. Load and aluminium-clad cables are also
produced. In 1955 there was built an ingot casting shop with
between wo and four low frequency induction furnaces, a
now rolling mill for rolling copper-based and aluminium based
wire, and a 1,500 tons oxtrus ion press of Krupp type to use
either the direct or indirect method.
M, -,GYAROVAR.
FE?,EiELDOLGOZO works for ccppcr-based 'metals.
there are soma coke-
fired molting crucibles, an Oxtrusion press and stamping
presses,
the exact location
Is elther 470 8' 43 N ,19005' 40"E or 470281401'N, 19005' 53 "E.
It contains a small foundry with, oil fired crucible furnaces
and small rolling mills for