The Abrasive Industry of Eastern Europe and the USSR.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A000500260001-4
• Release Decision: RIFPUB
• Original Classification: T
• Document Page Count: 23
• Document Creation Date: November 9, 2016
• Document Release Date: July 20, 1998
• Sequence Number: 1
• Publication Date: June 17, 1949
• Content Type: IM

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CENTRAL INTELLIGE NCE AG NC! 14
INTELLIGENCE ME'MMANDUM M. 135 17 June 1949
SMJECTt The Abrasive Industry of Eastern Europe and the USSR.
Abrasives are of critical importance in a state's war potential, and
represent one of the most sensitive points at which an-industrial economy
can be controlled. Artificial abrasives and industrial diamonds, necessary
to advanced industrial technics, are among the items in which the Soviet-
controlled economies stand in great need. Although both the USSR and Czecho-
slarakia have sizeable abrasives industries, their combined production is
not sufficient for their own requirements, to say nothing of those of the
entire Soviet orbit. The USSR's most critical lack is in precision grind-
ing wheels, which Soviet industry cannot yet manufacture, and without which
Soviet machine tool production is quantitatively and quanttitively handi-
sopped. With all its abundant resources, the USSR is depe nt upon imports
for such essentials in the abrasives industry as graphite electrodes, silk
bolting cloth, natural rubber, and shellac.
Shipments of abrasive raw materials and finished abrasives are helping
to alleviate this shortage to some extent. In view of the limited informa-
tion available on abrasives production and requirements, it is extremely
difficult to relate western shipments to the normal requirements of Eastern
Europe.- It is estimated, however, that actual shipments have not been in
excess of current requirements, and that therefore stockpiling of abrasives
has not been possible. Western exports of abrasives to Eastern Europe would
have been larger had it not been for the initial inability of American and
British suppliers after the war to fill the large orders from Eastern Europe,
and the more recent refusal of American manufacturers to accept Soviet or
Satellite orders.
A detailed report on the abrasives situation in Eastern Europe and the
movement Of abrasives to that area is attached as Enclosure "A".
Attention is drawn to earlier information on this subject presented in
1& 82 and IM-150. Further information will be provided as it becomes avail-
able. A comprehensive study of the abrasives situation in the world as a
whole is under preparation.
This memorandum has not been coordinated with the Intelligence Organi-
zations of the Departments of State, Army, Navy, and Air.
D ibution; not for circulation outside IAC Agencies.
An edition which has been modified to protect certain CIA sources has
been prepared for more general distributbM,ant No. DA
CHANCE in Class. o
TO: TS S C
4 Apr 77
.1'64
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NCLOSURE A
TIM ABRASIV INDUSTRY OF &kST ?.N EUROPE 'AND THE MR
1.~'.gction~,
Abrasives are of the greatest importance to any industrial economy. The
process of grinding, involving the use of abrasives, enters into every phase
of precision production in the metal working and optical industries,, as well
as being a major standard production method in all types of light and heavy
industry.
Abrasives found in the natural state, with the exception of diamonds and
the better grades of corundum, are too soft for most industrial uses. This
report will therefore be concerned with artificial abrasives with brief men-
tion being given to industrial diamonds.
The artificial abrasive industry is of American origin and began in the
latter part of the 19th century when the American scientist, Dr. E. G,, Acbesoxi,
discovered the electrode method of producing artificial abrasives. Dr. Acheson
subsequently founded the Carborundum Company to exploit this process, and that
company now his several subsidiaries in Europe, The United Carborundum Com..
pany in Czechoslovakia was formed as the result of the purchase by Czech in-
dustrialists of Dr ? Acheson e s patents 0 The technical know-how for manufactur-
ing artificial abrasives is available or in practice in most of the industrial
countries of the world including the USSR. The United States has always been
the leading producer, consumer, and exporter of artificial abrasives.
Artificial abrasive products empl y the use of either of two basic com.
modities, aluminum oxide or silicon carbide. Both o' these are produced in elec..
trie furnaces. The crystals that result from this electrolytic process are
crushed and then sifted into grain sizes. It is these grains which go into
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the production of coated abrasives, such as sandpaper and garnet cloth,, and
into the bonded products. grinding wheels, sticks, and hones.
Approximately 60 percent of the output of crude silicon carbide is used
for abrasive grain; the remainder is used for refractories. All except a
small fraction of the fused aluminum oxide production goes into abrasive grain.
Approximately 15 percent of abrasive grain is used in the manufacture of
coated abrasives; 25 percent- is employed as grain in a wide variety of uses
such as sandblasting; the bevelling and polishing of glass, granite, marble
and stone; lithographing; and in refractories. The remaining 60 percent is
used in bonded abrasives - wheels, sticks, and hones.
The production of abrasive crude is dependent upon an adequate supply
of raw materials--bauxite in the case of fused aluminum oxide, and
silica and high-grade coke for silicon carbide (petroleum coke is required for
the better grades of silicon carbide). A large quantity of cheap electric
power is required to run the electric furnaces, while a certain degree of
ceramic know-haw is basic to the whole operation,,
Abrasive wheels consist of the abrasive grain (aluminum oxide or silicon
carbide), bonded together with some other material such as kaolin feldspar,
china clay, natural rubber, or shellac. Vitrified wheels, containing one
of the clay products mentioned above, constitute approximately 50 percent
of the output of abrasive grinding wheels. The manufacture of grinding wheels
requires a higher degree of technical know-how than the production of abrasive
grains. Advanced technical knowledge is of particular importance in the manu-
facture of , q& grinding wheels.
The field of coated abrasives is considered to be of less importance than
that of bonded abrasives and is therefore omitted from this survey.
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One U.S. nanufactursr received identical orders from five different agents and
identified them as being similar in quantity, specifications,, and terminology
with an inquiry placed by Teccno Import in Moscow. Green silicon carbide is
important because of its use in the manufacture of wheels used for grinding
tungsten carbide tools. No known production of this material exists within
the Soviet orbit probably because it requires the use of petroleum coke in
its manufacture. To the best of our knowledge no U.S. firms have quoted on
this order? The quantity is not considered to be in excess of current Soviet
requirements for silicon carbide.
(2) Czechoslovak..
:Uo
(a) e'.a e~aen ax.~Prod...
Czech requirements of abrasive grains are estimated at 8,000
tons of aluminum oxide aid 3,000 tons of silicon carbide annually. United Car-
borundum is the only producer of abrasive grains in Czechoslovakia and has
a reported annual capacity of 8,000 tons of aluminum oxide. Official Czech
statistics, however, report that 1948 production of this commodity was only
6,121 tons. United Carborundurn has apparently failed to restore its silicon
c rbide furnaces since the war, and Dr. Novak, the Company's director, has
made persistent efforts to obtain this product in the United States,
(b) t .
The Czechs have indicated that they were purchasing 1,000
tons of silicon carbide a year from Norway and that they desired to purchase
another 2,000 tons in the United States. In 1948, however, the Czechs purchased
only 420 tons of silicon carbide from Norway and 813 tons from the United States.
They have apparently had no need to impart any of their aluminum oxide require.-
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menta and have demurred to the offers of U.S. manufacturers to substitute alu-
minum oxide for Czech silicon carbide orders.
(c)a
During the last three years the Czechs have tried repeatedly,
and for the most part unsuccessfully, to secure large quantities of silicon
carbide from the U.S., but the quantities requested have not been in excess of
Czech requirements. The following inquiries have been reported during 1949,
on all of which the American companies have refused to quote:
(i) 1,000 tons of silicon carbide for the manufactu:z of
refractories. Inquiry received 11 February 1949 from U.S. agent for Pancosma
Ltd., Geneva, Switzerland.
(ii) 6.5 tons of silicon carbide. Inquiry received 11 Feb-
ruary 1949 from Siegel Chemical Co., Inc., Brooklyn, N.Y.
(iii) 2,000 tons of silicon carbide. Inquiry received
1 April 1949.from Overseas Marketing Services, London.
In each of the above cases the agents involved stated the inquiries had,
come from Czechoslovakia.
(3) Pa .
(a) Pry cacti b a Reo,~ire
Hungary has no known production of abrasive grains. Hungar-
ian abrasive grain requirements, largely for her grinding wheel industry, are
estimated at 400 tons of aluminum oxide and 150 tons of silicon carbide annually.
(b) 22artg?
In 1948 Hungary imported 48 tons of abrasive grains from the
United States, none from Norwegian, British, or Italian manufacturers.
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(c} j es.
The Central Board of the Hungarian Ceramic Industry has made
numerous attempts to procure abrasive grains from U.S., British,, and Canadian
suppliers. In a few cases these inquiries have been placed directly b4- the
Board. In most instances, however, the orders have been placed with American,
British, and Dutch agents. The following is a list of the inquiries w-rich have
been received:
Date of Inquiry Agent
A. By a U.sS. Manufacturer of Abra ives:
1. 10/8/1-- Hungarian Ceramic Ind.
2. 10/8/4 B. Rupke, Utrecht
5e
13/12/4&-M? Denes, Budapest
31/l7/4 --Blocks Tait 0 Comp o,,N 0Y?
Katerial Amount Act!- M_
Aluminum Ox1de--4O9 tons--No quote
Aluminum Oxide--840 tens--No quote
Silicon Carbide-150 tons--No quote
Aluminum Oxide--400 tons--No quote
Aluminum Oxide
regular & white--several hundred
thousand pounds
of. each-No quote
12/14/48--New World Suppliers, N.Y. Aluminum Oxide -not -stated--
Nu quote
B. By a U.S. machine tool and abrasive
1. l2/6/48--Corregidor Ltd.,Lor.;don
12/7/48--Hungarian Ceramic Ind.
3. I2/l/48--U.Sa export agent
B-1. By Same Company's UK subsidiary:
1. 12/-/48--Corregidor .Ltd.,London
0. U.S. Exporters
10 3/-/49-- Hungarian Govt.
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Co.:
Abras:ivi Grains--4440 tons--No quote
Identical order as above,--No quote
Aluminum Oxide--374 tons--No q ote
Abrasive Grains--100 tons--No quote
Aluminum Oxide--100 tons export li-,
cenee applied
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Added together, these inquiries would represent amounts far in excess
of Hungeryes requirements. The si iUrity of many of the orders indicates,
however, that the same order was probably placed with a number of agents in
the hope that at least one of them would materialize,
(4) gland.
(a) . ' c ion and R 'u rementa m
Poland produces no abrasive grains. Requirements far such
grains probably range from 200 to 300 tons a year.
(b) .
During 1948 Poland imported 174 tons of silicon carbide from
Norway. The U.S., Britain, and Italy exported 22 abrasive grains to Poland
in 19480
(c) Inouiries.
(i) 100 tons of aluminum oxide. Placed by the Polish Ameri-
can Supply Coorpoiration, New York, with an American manufacturer in December 1948.
Latter advised customer to obtain an export license and has heard nothing fur-
ther regarding the order,
(5).~0
(a) 7t` onandRq it m nts.
Rumania produces no abrasive grains. Rumanian requirements
are estimated at 200 to 300 tons a year.
(b)
So far as is known, there have been no shipments of abrasive
grains from the Q.S. and western Europe to Rumania since 1946. The USSR has
reportedly shipped some abrasive grain to Rumania from Germany.
-9-
X Angs
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(c) Inoue.
(i) 200 to 300 tons of abrasives,'including silicoza carbide
and aluminum oxide. Received during 1948 by an American exporter. So far as
is known, this exporter did not accept the order.
(6) Y tzvia e
(a) pda on axed Ream ream..
Yugoslavia produces no abrasive grains. Requirements are
estimated at 300 to 500 tons annuallye
(b) ~.
During 1948 Yugoslavia imported 109 tons of abrasive grains
from Italy, 45 tons from Norway and none from the United States, Imports during
1947 included 110 tons of silicon carbide from Norway and 217 tons of aluminum
oxide from the United States,
In addition to the above, three trade treaties signed by
Yugoslavia in 1948 called for the shipment of abrasive materials to that coun-
try. The treaty with Czechoslovakia signed 24 May called for t he ship -ent of
30,000,000 Kcrunas worth of abrasives to Yugoslavia. A trade agreement with
the SovZone of Germany signed on 15 November 1948, effective until 33. May 1949,
provided for shipment of aluminum oxide to Yugoslavia. A trade treaty with
Austria signed on 31 August 1948 provides for the shipment to Yugoslavia of
abrasive materials to the value of $50,000. (Grinding wheels may be included
in the category of "abrasive materials" in some of these treaties). There is
no confirmation of actiAl shipments under any of these agreements. It does not
appear that the quantities in the aggrega
iag of Yugoslavia's current requirements.
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(c) Ilia iiis.
(i) 1,500 tons raw abrasives. Inquiry received 21 Decem-
ber 1948 by U.S. exporter from Pav Impex, New York City, a firm with Yugoslav
connections, In April 1949 Pav Impex informed the U.S, exporter that the
order had been filled in Europe. It is doubtful whether any single European
manufacturer could fill such a large order which is certainly in excess of
Yoslav requirements,
(ii) Nummsrous additional inquiries of Yugoslav origin
were received by U.S. firms during 1948. The total quantity exceeded 16,(x0
tons, two-thirds of it aluminum oxide and the other third silicon carbide,
To the best of our .knowledge, none of these inquiries was filled. It is be-
lieved that the Yugoslav Government hoped by placing these orders to fill its
import requirements in their entirety even though only a fraction of the
quantities requested were actually shipped. The desire to stockpile may also
have been the motive behind these large orders, although even for stockpiling
requirements, the quantities requested were excessive,
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fides are a railable, but on the we of World 'gar II, production
averaged 9,600 tons a ,mlly. The Czechs appear to be able to satisfy
their arm requirements for all finished abrasive products eeept r ibber-
bonde wheels, which they are reportedly m able to manufaotie.
(b) s r+~lA~tiu lts
L. Records of the Czech Statistical. Office icnto
that for the first nine months of 1948 imports of wheels amounted to 18
tons. This compass with imports of 24 tons for the full year 1937?
U. The same statistics abru that $20 tons of wing
:vaheeIs ware, exported duvlM the first nine months of 194& Exports for
the mill year l9)7 show tss of 600 two.
iii. C zechoeloro tia is reportedly allocati a half of its
VindlM del exports to the Soviet tbion. The remainder are shipped to
other Furs cures and to South America.
i. A British grinding, w l manufacturer receivod the
following Coachoolova orders iu period I June 1948 to 1 1949:
40 13.0.
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abrasive grains from the US.. its inquiries for wheels have been notably
lacking, lending support to belief that Hungary is able to supply her
domestic grinding wheel requirements.
The following is the only inquiry reported:
X15,000 worth of finished grinding wheels. The
ingt r was received by a tS manufacturer on 6 December 1948 from Corregidor
Ltd.,, London. The latter stated that the shipment would be made to
T ar" '. The t8 manufacturer did not quote an the order.
(3) bUM.
(a) MO t o a a '2" W2W+ +e?+e.
Little data ie available on Polish grinding wheel require-
mente but ;may probably do not exceed 500 tons a year, Reports of the
number of abrasive wheel m=uf+ cturers In Poland vary from one to tie,
and the total nw"r of wheels,ptodueed is believed to be insignificant.
Poland is therefore depethexr outside sours for her grinding require-
(b) ,~ ?
During 1948 the tB shipped to Poland 17 tons of grinding
wheels at $2500. During the first nine months of 1948 the United Kingdom
shipped $2888 , worth of grinding wheels to Poland.
(a) ?
I. The foLloving orders for abrasive wheels were placed
by Polix (Polish Import and Export Co.) with a British firm in the period
April. 1948 to April, 1949.
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V of
Aar
17 Apr 48 100 Win-grit carbo-, 95
rm2 d v e1 3
2 Sep 48 P ~,aci rubber w tee1
30 Sep 48 Al te rubber wheels
InQuiries fir the saw period crer4 a `;i11ms t
u
18 Z-an 48
=. ' rig`,ab 4a
L'w
.9 Uggn
Carbmundum & a1oxite
629
;
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vitrified & reline
whe 1s
r per,
y
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28 run 48 A1; .ite rubber &
resimid wheels
1 W 48 Oarbo " ; dx it v'itx? 1e;1
wheels
3-1 Aug 48 AZ .'e r : k cut-
off wheels
7 Aug 48 Oencra1 inqWxds
diwao wht ele
6 Sep 48 C arborw du?rn & a 1oxi ti L769
vitrified v I 1s
33 Oct 48 A1aa .te r sbber & 05
15 110 7 48
resinod w e:is
Di oz 1 wheels
17 Nov 48
A: sortnant everaterless
fi?.62
Wheels
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vz'1eo1s
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'' order
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procured from natural quarries a, Such inferior substitutes are of
no value in precision uses,, It appears that the Yugoslavs are z
using nre artificial abrasives in their grinding wheel produoton
than they used before the war, and that they mast depend upon
other oountries to meet their requirements for precision grindIng
wheels,
(b) JMWk.
US and L'ritish statistics Indicate that no grindlrW
wheels were eirpa t ted to Ft oalavinn from either counterspy in 1948
It is believed that Czechonlovak a exported some grinding wheels
to 'Yugoslavia In 1948.
(a) rh o
Vii, 10,000 grinding wheels for sharpening planer
and other tools used in woodworking and sawmill industry*. This
Inquiry was received by a US manufmoturer on 9 May 1949 from the
Yugoslav Embassy in Washington. So far as is mown, the A-oricsn
MWrafacturer has not quoted. The order is large but not excessive
for Y'ugoa3avia'a woodwor'ki industry,,
(1)
B~ '4r, va~-f;~,
(a)
Soviet recpuirents of diamond wheels for precision
grinding would presumably be vet large, The USSR is reportedly
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