SOVROMMETAL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R010800090008-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 12
• Document Creation Date: December 22, 2016
• Document Release Date: May 20, 2011
• Sequence Number: 8
• Publication Date: February 29, 1952
• Content Type: REPORT

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CENTRAL INTELLIGENCE AGENCY
INFORMATION PORT
COUNTRY
SUBJECT Sovrornrnetal
PLACE
ACQUIRED
DATE OF
INFO.
00 "K N#9PSD STA'na W"(18 Tax QEt no OF in nPFORAci AC9 tP
W. M- C_ *1 AV& ai AS a aaAL. 41ffi1t4atU1SinO l 02 T*M NEVEIAYIOi
J 50X1-HUM
REPORR
CD NO.,
DATE DISTR,
29 February 1952
NO. OF PAGES
12
CtCUT
TIAL
DPFoN
PPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
1, Sovrornrraetal is the Soviet-Rumanian successor company to Resits,
a well-known steel and iron works, When a general nationalization
law was passed in Rurnania in 1948, a number of Soviet-owned indus-
trial plants were affected by the decree. Industries considered prof-
itable by the Soviets were not permitted to be nationalized;; ;industries
not considered profitable by the Soviets were nationalized, and corn-
pensation was paid by the Rumanian State in accordance with the terms
of the nationalization decree, though no other former owners ever
received core pensation, In some cases the USSR waived compensation
in some industries on condition that a Sovrom was formed for the joint
exploitation of the industry concerned. In this case the USSR contrib-
uted the corrapensation due to it as its share in the assets of the near
company,
O
? -i
Date: ___g SEp ,_
Class. Changed 'To: TS S C
Auth P un T
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Iancu Petro Simonenco0 was appointed joint general manager 50X1-HUM
of Resita after the nationalization, and general manager of Sovrom-
metal after the establishment of this organization on July 10 19490
It is not known at what time negotiations for the formation of Sovrom-
.metal began after the nationalization of Resita. However, as a first,
step- Resitao together with the Hunedoara. Malaxa, and Ferdinand
works were com?ined in the CIS (Centrals Industries Siderurgice
Steel and Iron Industry Center) which then became the DGIS
(Directia General A Industries Siderurgice. - Steel and Iron InOus.-.
-try Department) of the Ministry and Metallurgy and Chemicals a n.-
dustry. On January 1, 1949, Resita was detached from the CItS
and was given the status of an independent "Representation" with
two managers, Carol Loncear to represent Rumanian interests,
and Iancua Petrie Simoneaacco to represent Soviet interests.. This ar
rangeiaent remained in force until July,, 1949, when Sovrrommetal
was established. At the time of the establishment of Sooroaarueetal,
Resita assets consisted of the following properties: the Resits works,
a screw factory at Anina, the electric power station at Anina, the
bridge works at ocsa Romana, and the factory for agricultural ma-
chinery at Bocsa aoerana.. In addition there were coal mines at
Anima,, Doman, Secul,- Arnaas and extensive real estate at Reatta,
which irrdcluded. forests and vineyards and and on which other works
factories were. situated. The Resita forests and vineyards 9 ' the
Anina coal mines, and other assets of the Resits company estimated
at. 34 per cent of the total assets, became Rumanian State property.
Of the ,remaining 64 per cent, the Soviets held 33 per cent which
entitled them to a 50 per "cent interest in the new Sovrommetal or- .
ganniza?ationn4 The Aninna. mines were shortly thereafter included in the
Rumanian contribution. to Sovromcarbune in order to make up 50 per
cent of the total assets and to prevent the Soviets .from claiming a
controlling interest in Sovrromearbune. Rumania.guaranteed the
ovrr'ommetal ca ital. 50X1-HUM
the
.real net profit. not that which appeared in the balance sheets, stood
at 49 per cent on the capital at the end of the first working year.
Overhead expenses were charged at 45 per cent, while the production
costs of any item required in manufacturing process were calc ulated
as though this. piece had had to be individually manufactured for the
purpose, even if it had already been previously used. Cost aaccount-
inng is carrreied, out in this manner at the wish of the Soviets. The
balance sheet had to be signed by representatives of the Ministry .
of Metallurgy and by the Cost Accounting Section of the Ministry of
Finance, but these ffigures did not. show great interest, and kNere
prepared to take the 6 per cent profit, which appeared in the balance
sheet as the basis for tax calculations. The tax evasion which re-
suited was. to some extent made up by the fact that the state shared
In the 49 peg cent profits, which were used either for secret~'State-
funds or the Communist Party. There was a double bookkeeping
system, one headed by a Russian, Smlrnov, and the other by a
Rumanian, We Pascu. The Soviets were able to remove their share
of profits without any restrictions, There were two.blast furnaces.
known as Noe. 1 and No, 4, the flatter Homing the more modern in con-
struction. Tine"furnaces consisted off several chambers, the lowest
a?a1w.
producing the raw iron, of which 10 to 15 per cent was grey
iron and the remainder white. cast iron. Other chambers coile cted
the other metals present among the iron ore,.. Including leade bronze sic)
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and silver. These auxiliary chambers were cleared once a year.
in the summer of 1951, 300 tons of lead were collected from the
two furnaces. This was sent to the Laasinorul factory,, 50X1-HUM
this was the total lead production of the two furnaces 50X1-HUM
for that year. Using iron ore 'as raw material and coal gas made
in the coke works as fuel, the'faarnaces produced 10 to 15 per cent
of grey cast iron for the production of crude iron sheets for domestic
stoves and boilers,, and white cast iron as raw material for steel
production, the furnaces required five hours for 50X1-HUM
each batch of cast iron. He knew that 3, 000 tons of cast iron were
put aside every month for the steel works, so that these could work
to capacity even if there were a shortage of scrap iron. The steel
works preferred to use scrap iron,, as this cost Jesse z 50X1-HUM
they did not receive more than a maximum of another' 50X1-HUM
30 000 tons of scrap per month. Sovron metal steel production.per
year was in the neighborhood of 240, 000 tons,, of which 366 000
tons were made of scrap. iron. There was practically no loss in
weight in steel production from either scrap or cast iron so that
204, 000 tons must have been made from cast iron produced in the
two blast furnaces. Cast .iron sold for 120 S00 let per ton including
tax Iron ore sold for 400 lei per ton,
3... Equipment for the steel works consisted of eight Siemens-Martin
furnaces and two galvanic pile electric furnaces. Resits had a
factory for the production of firebrick.: so that additional Siemens-
Martin furnaces could be constructed when needed? Using whi to
cast iron, scrap iron,, metallurgical coke and siliciurn as their
raw materials, the Siemens-Martin furnaces produced steel with
all grades of carbon content in ingots and in quadrilateral and oc
tagonal elongated truncated cones. The cast ingots weighed from'-
600 kgm to 25 tons. The electric furnaces produced high quality
steels,, including molybdenum, nickel and chrome steels. One of
these was known as SAE 3140, and was used for the manufacture
of sleeves for oil well drills,, while another. known as O. P.. steel,
was used, for the manufacture of sheet steels required for munitions.
The Siemens -Martin furnaces produced 60 to 70 tons of steel in
six hours.. Working three shifts a day,, the eight furnaces, being
charged four times a day, in theory produced roughly 2, 000 tons of
steel, In fact,, clearing and recharging took a considerable time, and
actual production did not exceed 10 000 to 1. 100 tons per day, The
electric furnaces produced three tons of steel in five. to six hours.
They were used only as required,, and their maximum capacity was
not know 50X1-HUM
4. Production methods at the steel foundry which was a subsidiary
of the main steel production works consisted of melting down steel
in a furnace and running it into wood or sand molds, the latter re-
wiring a special type of sand known as Doclin in Rumanian. These
castings supplied frameworks and parts for machinery. 'The work
was done by hand with no special equipment. Products included
cylinders for. locomotives, spokes for locomotive wheels, complete
wheels for railroad cars and locomotives, casings for electric motors,
oil well mud pumps and steam engines, shafts for shipping and other
cast steel products,, Production depended on orders, 50X1-HUM
FThere
was sabotage by the workers, and up to 70 per cent of the finished
pieces were faulty and had to be recast.
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5r. The rolling mills consisted of several complete trains of rollers,,
each train being used for the manufacture of a particular product.
6o The fine work train had a single large electric roller,, which p ro-
dunced two types of billets from 600-kgm ingots,, These were either
light billets of 3 to 30 (35) mm thickness,, used as concrete. rein-
forcements,, and as flat,, round and U irons for general purposes,,
or round billets, a semi-finished product for pipe factories. The.
roller was worked for 24 hours in three shifts,, and could produce
90 tons of iron per shift. One shift a day was rewired for the chang-
ing of the rollers.
7. The medium work train had a single large electric roller,, which
produced two types of billets from 600 to 1.400 kgrn0 ingots.
These were either round billets known as 68/68 and 70/70,, for
pipe factories,, or medium billets,, for angle irons,, round iron;
commercial iron,, 9 to 13 mm rails and U irons,, The machine
worked 24 hours a day in three shuts. MaKimum production was
110 tons of steel per shift, but one shift a day was used on changing
rollers,
S, The sheet steel train had a single large electric roller which made
sheet iron of all thicknesses from five rum up,, using mild steel ingots
of 1,, 400 kgm. to six tons,, as well as malleable plates for cold
forging and curved plates for ships and for boiler .lids. The machine
worked 24 hours a day in three shifts,, and its ma nimum capacity
was 100 .to 110 tons per shift, with one shift a day.~employed on
changing rollers.
9~' The reversing or 'shaping train had two large electric rollers. The
first of these stretched l,, 400 kgs. steel ingots, aligned their sides
and changed them from roughly pyramidal shape to a parall' elepipad
shape.. The name "Reversing" derives from the fact that this rolller
turned the ingots automatically during the rolling process., The second
roller converted the elongated ingots into railroad track,, girdersE
and large U Irons.' Using O. P. steel (see above) this train also
made semi-finished products for munitions facctoi?ies. Production
was begun in January 1951 for supply to the following factories t,
a,,'; The March factory at Tohani,, near Stalin (Brzsov) former ly
owned by Ma laxa)?
bQ The Brairner Bela factory (formerly Vain) at Stalin.
co The Steagul Rosu factory at Stalin,
d. The Cugir factory,,
e. The Margineanca ffactory,, This factory made munitions during
the last ear,, but was converted to the production of agricultural
machinery afterwards. In 1951 it was reconverted for muni-
tions manufacture. These machines worked 24 hours. a day in
three shifts. The maximum production capacity of the re-
versibletrain was 130 tons per shift,, but one shift per day was
employed on changing the rollers.
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c
10. The total maximum production of rolling mills was as follows.-
ao Fine work, 2 shifts per day, ? 180 tons per day
b, Medium.- 2 shifts per day, 220 tons per day
c. Sheet Steel, 2 shifts per day, 220 tons per day
d, 'Reversing, 2 shifts per day, 260 tons per day
11. The maximum daily production was 880 tons, Taking 25 working
days a month,, and adding a production of 1, 100 tons per month for
the wheel flange train, maximum total production of all rolling trains
per month was 23, 100 tonsil Between 20, 000 and 22, 000 tons of
rolled steel were produced monthly by Resita during World War IL
when production was at'ts maximum, a figure roughly euival ernt to
that obtained by adding the maximum capacities of the single trains
as above,
12, The wheel flange train mad the outer rims or flanges of locomo-
tive and railroad car wheels
It did snot consist of any system of rollers. Its max mum
production capacity was 1, 100 tons per Month-
13, The forge had eight to ten remelting furnaces,, Ingots from four
to 25 tons in weight were reheated and then shaped as required
by two large and many small hammers. The large hammers were
the only ones of this type in the whole of Rumania, and other steel
works sent ingots over four tons to Sovrommetal to be fforge& The
large hammers developed a force of 250 to 300 tons. The- forge
made automobile aisles and propeller shafts for fishing vessels ?
which went to the metallurgical departments for finishing. The
forge had a maximum capacity of between 3, 000 and 4, 000 tons
per month.
14, The coke works made gas to heat the blast furnaces and coke for
admixture to the molten crude iron in the Slemens.Martin furnaces.
15. The steel foundry?s work was held up by sabotage, the workers
apparently not fearing the conse,%uencces. There was sabotage on
a large scale in all departments, even the blast furnaces, where
grenades were put in with the ore in order to cause explosions.
The forging department was much too small to be able to cope
with the demand by Sovrommetal itself and the.other Rumanian
steel works, especially in view of the large compensation produc-
tion called for under the terms of the armistice with the USSR
and the need for new equipment for the oil wells. The rolling mills
could not work for lack of spare rollers. Sovreommetal could-have
produced these, but the Soviets did not agree to the interruption of
other production for this purpose, and rollers had to be imported
from Czechoslovakia, which did not, however, send more than two
rollers in 18 months.
167. Metallurgical production came from factories which were both
at Resita and in the vicinity.'
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17. The bridge construction factory used products coming from the
rolling mills for the manufacture of all types of railroad 'k-ridges
which were made in sections and erected at the site by Sovvo aetaL
-mountings for oil well drilling equipment up to a weight of ZS tons;
points and switches for railroad track. pylons for telephone wires
and other steel construction material. its maximum production
capacity working 24 hours a day was t0 500 to 30 000 tons a dal,,
18, The factory producing wheels finished the rough castings of spokes
from the steel foundry and flanges from the flange department to
make 650 pairs of freight car wheels per month and seven to eight
sets of wheels for loconr otives0 consisting of four large and two
smsail wheels each. The 23 August (formerly MaRaxa) factory, the
only other works in Rumania to produce locom otives0 was unable
to wake these wheels and obtained its re(luirements from Soveom metaL
19, Casings and shafts for electric generating equipment came from the
Hala Yeclae factory (see below),) copper wire caste from the
IIndustria3 Sa rmei factory and silicate sheets came from the Otelul
Rosa (formerly Ferdinand) factory. Silicate steel was made by
Sovrommetaal? but as these sheets had to be of less than 5 mm.
thickness, thick plates were sent to Otelul Rosa for thinning,, Mica
and leteoride sic insulators were imipor ed from, Czechoslovakia
and Hangar Prespan (sic) cardboard was for- 50X1-HUM
merly imported but then produced in Rumania in fairly good
quality. The ecoruipment made inclludedo dynamos, generators and
trn?ansfformers0 either in sections or assembled, with a capacity of
up to 60 000 KW, The factory produced egveipm rent totaling 35, 000
KW per year, of which machines totaling 50 000 KW remained at
Sovromrrn metaa. 'while the rest were marketed in Rumania and the
USSR, The egeaipment was of escellentuaiityc: even the Soviets
admitting it was better than that made in the USSR Itself,
20. The Haal& Veche (Old Haall) factory had been the oldest production
unit at Resita0 and it was very well equipped,.. It used rolled and
forged steel from Sovroiaetal0 and machine casings from the
foundry for mud pumps, steam engines and borders. It made c om-
pllate oil well drilling innstailatiions0 known as Granice or Troli$0
which were mounted on the drill shaft and consisted of a rotary
table with a projection which protected the shaft Itself and guided
it into the soil; a pulley at the head of the well to move the drill 1
shaft and the hook attached to the drill shaft to give purchase to the
pulley; two types of drill shafts either round (heavy weigh ~ or
sguare0 both with a central orifice which permitted a double stream
off water to enter and leave the bore hole:, Drill shafts made
Sovrr?oa metal were aalll between 124/2 and 16 meters long, and were
joined end to end until they reached downi into the oil strata9 mud
pumps removed the liquid snud produced by the water pumped Into
the bore hole through the shaai,ts* steam engines forming part of the
OrPanice?. supplyed. power to the entire installation. These machines
were made with either 15 or 25 atmospheres of pressure.
21, Resift had been requirredr under the terms of the Soviet-Ram ian
armistice, to. supply the USSR with a number of llocomotiveso b 4t in
May 1951 only a smnail, number remained to be sent before the agree-
ment estpired in Fully 1952. As the Rumanian railroads were suffi-
ciently supplied, it wStvdiecided to switch over to the production
0
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of compressors and steam engines. Production totaled about
3, 000 to .4, 000 tons per month, including two complete drilling
/ installations this was the planned production, and as normally
achieved, though it rer> uaired a relatively great efffforth; five or
six steam engines. 10 to 12 mud pumps, and 14 heavy drill shafts
r and eight to ten square shafts,, despite the difficulties Involved in
the production of the steel required for this purpose,,
22. The locomotive ffactory consisted of a boiler works and an ass embly
hallo The former made steam boilers for locomotives and rimmed
steel plates for locomotives from the malleable " steel produced by
the sheet steel train. It also made boilers for the steam engines
recurred for the well drilling installations, and shaped steel plates
for the entire metallm-glccal industry in Ruaarsnanie,, In the assembly
hall the boilers made by Hale Veche and other parts made by Hale
-Noun (New MUD were assembled and the locomotives built. The
locomotives were of the following types:
ao CPR (Rumanian Railroads) Series 50, 000 for freight trains with
a speed of 60 to 70 km p. h.
b0 CFR Series 142,, 000 for passenger trains, with a speed of
1 10 km. p. h.
co CFR Series 150, 000 for passenger and freight trains, speed
100 to 110 kin. p. h. This was a German model which was
first produced during World War 19.
d0 Er 0-5m0?URSS0 - eightng 108 tons with its tender, and with
a speed of 80 km. p. h. This was the Soviet model produced
under,, the armistice contract,, and was similar to the Rumanian
50,, 000 model.except that its tender. was smaller by about 25
to 30 cu/m. and the mechanism was simpler so that it could
be handled by drivers of t my modest skills
e0 Engines for small trucks, to run on 9 mm. and 13 mmo tracks.
23. The Hale Noue (New Hall) factory was built in 1943/44 and has
the most modern equipment of the entire Sovrommetel group. Its
machinery included ordinary and vertical lathes, planes and Seiirre
,imported from the U. S.) for the manufacture of toothed gear
wheels,, The factory produced parts for locomotives, including
pistons, connecting rods and fly wheels and sleeves for the joi ning
of the drilling shafts which ~olned the sections and damped the
shocks caused by the actual drilling,, They were of two types.,
with and without a spigot,. the two being used alternately.. They
were made of a special steel known as SAE 3140, production bay-
ing begncn only in October 19500 There were two kinds of sleeves,
"Full-hall" end.90Regular, " unable to describe the
difference between them. Also produced were fish=tail and other
drill-bits (the former were manufactured in accordance with
patent) for oil ins.tallations0 Toothed gear wheels were
biz It here for various purposes. These were msnade only by Sov-
ron9rsmetal, and where obtained thereby the 23 August factory for
its DuplesK pumps, In addition, testing 1Mmes for all types of
machinery and precision parts for machinery were made,. Actual
production was 1', 350' shaft sleeves per month.
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24. The "Hall X10 factory made the thin pipes through which the oil
was pumped up from the wells, and the sleeves needed to cony
nett. the separate sections of pipe. These connecting sleeves
were quite different in design to those used for the drilling shafts.
Production was 70,, 000 sections of pipe, with sleeves, per year.
There were never any complaints at production dropped off so that
it is assumed that this figure was sr>'lcient,
Z50 The tool factory of Sovrz'ouneaetal was re- equipped with
lathes and planes of all types in 1949?50 and made
almost all of the tools required by the Sovrrogw seta! production
units. It specialized in hydraulic and coal cutting harrmmers, and
also made drill bits, files and roller bearings. The fire-brick,
kiln, using Rumanian raw mate ?ia?ls,, produced enough fireabar-t ck
for all the Sovroa eta! ffurnaccea, Tolling sills and laboratories,'
and also supplied other Rumanian Andustries. The laboratories
were physical=chemical and the rr; o.electric. Sovrommetal had
several power staations4 the largest of which was at Anina, 36 km.
iron Resita itselffo This produced 12, 000 KW. Sovrommetal
owned railroad sidings with its own engines. and cam to connect
all parts of the works, and also to link Resita with the, subsidiaries
to Bocsa, Vaaslovaa, Anina, Valiuc and Ocnele de Fier.
26. The Sovrroma ,etaR ccompaany owned the agricultural machinery
factory at Bocsa Rog aan& which made ploughs, esrcavatorsc, harrows
(simple and n ,ultiple), shosvelso a esa other aagriculturll equip-
ment and horse-shoes, the latter mainly for the Army. It also
controlled the. chemical factory at Vaasiova which spade .naphthalene,
tar and a substance galled Catran which was used to coat the
outside of fishing vessels and the cables of escalators and the
Anina factory which made nails, screws, bolts and spikes.,
27,E Iron owe from the Ocnele de Fier mines was used, but in adds e
tion, ore was formerly imported from Yugoslavia with 80 per
cent iron content, and scrap irro As neither
of these sources is now available ore is imported from Crivoirogp~
in the USSR,, In addition,, ore from the Ocnele Mari mines near
Borsa was used, but had an iron content of only 50 per cent a~sd
had to be mi2ged with better duality ore for smelting,, Reserves
of, 80, 000 cog/m. of this owe have been collected since 198 Coke
50X1-HUM
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production from Antnaa was insufficient,, and coal was being imported
from Poland!. Small quantities of chromium, molybdenum, wolffwait
and nickel were required for from and steel production, and these
had always been imported
deposits of iolybdenite had been found at Vaatra Dorrnei by II5eana
a State prospecting organization,, !but only in small quantities.
2S, All production figures given above for single production units
are theoretical capacity figures. the figures below are actual
production figures. an the table below March 1944 Is used as the
starting point as production was then at, a a na xtmumo
Product March January June
1944. 1945 1948
( nationallla
zition) Qtons)
Steel 25-30, 000
Rolled goods 20-22,000 3,000 9-10,000
Production in tons
per month,
1950
20,000
195.1
11.12,000. 1546,000
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29. in January 1945 production of rolled goods dropped very sharply.
An accurate figure is not known This was due partly to the -war,
partly to Soviet interference at Resita0 and partly also to Communist
agitation among the labor force at Resita which was then privately
owned. In June 1948 when nationalization took place,, the position,
had improved somewhat,, though Soviet and Communist interference
continued. Production in 1950 and 1951 indicates that despite all
efforts to boost it, the 1944 production figures had not been equaled.
This was due entirely to the workers' lack of interest because they
had to fulfill impossible norms and did not earn enough to live
decently. Bad working conditions were also causing a good deal of
sabotage. The 1951 steel production was distributed among
Sovrommetal branches as follows: 15, 000 to 160 000 tons to the
rolling mills,, 20 000 tons to the forging department, and 2, 000 to
30 000 tons to the foundry. This included steel used for foundry re-
jects which went to the rolling mills after being recast,, and were
known as the "stock tampon" reserves. Production of metallurgical
goods was 40 000 tons per month in 1950.
30,, A haws took. lace with re and to the des the
,.' is itmmelffr abo ut
lit, a is , again to ire us ei ._ Up ~_ .... F to 1950.
96 per cent of the production had been sent to the USSR, under .
the Armistice Agreement, and from then until July 1951 a large
part had still gone to the USSR,
31 According to the Armistice Agreement signed on September 12 0
1944, Rumania was to pay the USSR 300 million dollars in goods,,
at the 1938 price level. Payments were to be spread over aim
years. IInguly 19490 when most of the debts had been paid, half
of the ' remaining sum was written off, and the period of payment
extended to eight years, expiring on July 12, 1952,
32. Reaitaa had sent the following goods to the USSR under the Armistice
treaty:
a. 168 locomotives of the Er 0-5-0 type,,
b, 60 200 pairs of wheels for railroad cars,
ovrommetaal
e0 owing bridges,, each with a motor and aaunilia ?y equipment 0
U ? eguiprnent for oil wells 0 including mud pumps 0 steam engines,
block and tackle pulleys 0 drilling sets, drilling and pumping
shafts,, fishtail drill bits, rotary tables, and boilers' with 15
and 25 atmospheres pressure,' as well as about 120 000 drill
shaft sleeves between October, 1950 and July 10 1951,
3, 600 tons of railroad switches during 1945 and leas in each.
following _year0 'Each complete switch weighed four and one-
.half tons,,
railroad bridges, 55 and 87.6m. span, during the second
year of the agreement, and two in the subsequent years,
In May 1951 Sovrr onunetal still owed the USSR under the treaty. 3 __
locomotives and 103 railroad switches,
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33 Three locomotives of the Er 0-5-0 type,, 30? 000 sections of pipe
for the withdrawal of oil from,, the wells, three steam engines,
and four mud pumps were exported to the USSR up to July 1. 1951.
Four mud pumps were sent to Hungary. Despite the requirements
of the Armistice Agreement, Sovronr metal continued to supply
finished and semi finished products from the rolling mills, forge
and steel foundry to other metailurgical works,, which in turn also
were working for the Soviets. The industries supplied included the
naval shipyard A at Turnnuu Severino Galati and Oltenia, which re-
ceived propeller shams and steel plates for the building of fishing
.vessels for delivery to the USSR (these were in reality small, fast
corvettes), Sovr?rrssametall continued to supply the Rumanian rail-
roads with all their requirements, The facilities of the forge and
boiler factory continued to be available to other metallurgical works,
Since July 1951 most of, the oil-drilling equipment was sold to
Sovvrongp,:~tr-ol by agreement with the Soviets, who were anxious
that this company should increase the number of its wells on
Rumanian territory,
O
OL o U. S. OFFICIALS ONLY
34. In 1950 the Sovrommetal turnover was twelve and a half Million
lei. Profits for the year were 49 per cent on the nominal ccapi til,
Turnover between January 1 a 1951 and May 1951 was one million.
four hundred thousand lei per month. The Soviet policy was to
extract the maximum amount of money from Sovrommetal, This
was demonstrated by the fraudulent cost system, with the aid of
which the excess profits were obtained. The onll pocDstO.. bi_C,__
the did not apply were the locomotives seHrr tmt~. for
which" iv-, 0 00 lei were a iargedo o~ deal lease the
icost ~ dorms yo. all the iet 'lllurgrical section ~ ,maintsained
s cks of raw materials 'for all purposes,,, as the iron and steel.
works could only operate their furnaces for full batches of metal.
Small quantities of any special material could not be obtained when,,
required . but had to be taken when it was available. Despite this
the Soviet general manager in July 1950 began to sell the entire
stocks of raw materials at a value of over a 1, 000 millions lei.
Although patent fees are no longer payable in Rumania, sums
due for German patents used by Sovrommetal were paid period --
icaAly into a special Soviet account.
rornmetal under the Five-Year Plan
following details.-
an A factory for bridges and structural metal was begun at
Bocea Romany in 1948 and was due to be completed in 1952.
The similar factory at Resits itself had proved too small for
requirements.
b., The following factory units were being built at Mociurio
between Calnicc and Reaita#. in May 19510
(l) A new forge on a much larger scale than any existing
in RumaniaI, t was not known 'from where
the equipment was to come? but it certainly could not
be the USSR if silenc w" iaain s iced on the 1uals a k.
He suspa~cca the equ pmena m g a coma nag ro e
West.
,,\00
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Very large investments were planned for Sov -
50X1-HUM
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~2) A new electric power station, as the existing supply wa s
not sufficient. The new station was to receive its machinery
from the dismantled power station at Valea. S aduuuai, near
Targu- Jiu, at was to produce 10, 000 KW.
(3) The Barzava River near Mociuri was being straightened
and new roads were being built in the area.
(4) A new and larger dates was being built at Valiuc to over -
come the water shortage at Resita, particularly during
drought periods.
~5) A total of seven billion lei was allocated for investments
in 1951?
364 The 23 August factory made 50-ton freight trucks of the "$oghiuri"
typ ith two pairs of wheels to each of their two a%les, The
_ateaBui_Roau factory made three types of freight cars for the
[USSR. They were general freight,, oil tanker cars, and cars for
alcohol. The latter was a new model specially ordered by the
USSR as part of the last commercial agreement.
37. A large blest ffurnace was being built at. Hunedossra with materials
made by 'Sovrommetal. This was to have been ready by November
7, 1951 o but it is not now ertipected to be finished before early in
1953. The new blast ffurnacce is needed to compensate for the
shortage of scrap iron for steel production. New rolling iillls
are planned for a site somewhere near the Danube,
380' There were only two works in Rumania which could make steel
and iron sheets as thi four mm. These were Otelul Rosu
(formerly Ferdinand,, and the Matel Baser ab
works at Galati. Oil drilling equips en In the Moreni region i s
supplied with power by a central steam power system, so that no
individual steam engines are needed,
39., The Soviets claimed to have electrified their oil drilling apparatus
by weans of a system similar to that used in the United States, but
they continued to import the stems engines for oil installations made
by Sovroc etal,. The its em prospecting company, while looking forr
oil in the Harlau region, discovered a number of methane gas wells;
and possibly oil, at Delent. The preliminary bore-hole was closed
up again pending development,
IPA
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( pjal'6/ii.~?S~/ V~~ JAO~.LJ ? 4n t . V:1? A l8 iAe4s ucrv ~..
CTTRAL ]INTELUGENCE AGENCY
Narme Office
Marosina . General Manager
b,,. Eduard Mic ulic
Assistant General
Manager
Co CAaaadac Stefanescu Chief Engineer
d' Stoian
e" Adolf Cotlar
h. Elie Pasco Assistant Chief Ac-
countant.
Sat I~~snoff Chief Accountant
In !charge of sates
and supplies,, sec
ttons of commercial
department,,
Technical Department
Sorerhtin, Effstate Technical DeP&Ttment
L Aleszffindran Xva cenco Assistant General
Manager QMetailinn: gy1~
Assistant General
manager (Steen $ Bron~
Assistant General
Manager (Adniinistara'
tt?nDQ
Took Factory
ridge Factory
Chief Accountant,
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PERSONALITIES