THE CEMENT INDUSTRY OF THE USSR 1950-60

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CIA-RDP79R01141A001200130002-1
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July 1, 2013
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November 1, 1958
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REPORT
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I Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: ICIA-RDP79R01141A001200130002-1 tRET, ECONOMIC INTELLIGENCE REPORT N? 37 THE CEMENT INDUSTRY OF THE USSR 1950-60 CIA/RR 155 November 1958 CENTRAL INTELLIGENCE AGENCY OFFICE OF RESEARCH AND REPORTS Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: :CIA-RDP79R01141A001200130002-1 WARNING This material contains information affecting the National Defense of the United States within the meaning of the espionage laws, Title 18, USC, Secs. '793 and 794, the trans- mission or revelation of which in any manner to an unauthorized person is prohibited by law. Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S -E-C -R-E-T ECONOMIC INTELLIGENCE REPORT THE CEMENT INDUSTRY OF THE USSR 1950-60 CIA/RR 155 (ORR Project 47.1092). CENTRAL INTELLIGENCE AGENCY Office of Research and Reports S -E -C -R -E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 ' Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T FOREWORD This report is written at a time when the USSR is releasing a con- siderable amount of new statistics and general information about the cement industry. This new material greatly enhances the coverage of the report but has necessitated numerous revisions. The revision of the 1960 goal for the cement industry gives revised statistics only for pro- duction and for the number'of.,..new. plants to be constructed through 1960, thus making it necessary'tbr,include some of the statistics for the original 1960 Plan. The orcginal figures are retained because it is felt that they are still of,value in analyzing the industry. - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T CONTENTS Page ? Summary 1 I. Technical Definitions 2 IL Problems of Cement in the Soviet Economy 4 III. Development, 1951-55 6 IV. Development, 1956-57 9 A. Plan Underfulfillment in 1956 B. Plan ReVision and Fulfillment, 1957 9 13 V. Planned Development, 1958-60 14 VI. Planned Development After 1960 16 VII. Inputs 17 A. Materials 17 B. Labor Force and Productivity 19 C. Costs 21 VIII. Capacity of the Industry 22 A. Capacity and Production 22 B. Capacity in 1955, 1957, and 1960 24 C. Growth, Costs, and Efficiency 24 IX. Regional Distribution of Production and Consumption . . 30 A. Factors in the Location of Cement Plants 30 B. Regional Distribution Through 1955 31 C. Problem of Transportation 33 D. Regional Distribution, 1956-60 36 X. Pattern of Trade Since 1948 37 A. 'Exports Within the Sino-Soviet Bloc 37 B. Exports Outside the Sino-Soviet Bloc 37 C. Imports T4o XI. Quality and Types of Cement 43. XII. Prices 46 - v - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T ' Appendixes Page Appendix A. Statistical Tables . . . . ...... . 49 Tables 1. Consumption of Cement per Million Rubles of Construc- tion in the USSR, Selected Periods, 1933-60 5 2. Production of Cement in the USSR, 1940 and 1950-60, and in the US, 1940 and 1950-57 8 3. Plan Fulfillment and Increases in Production of Cement per Year in the USSR, 1955-56 9 4. Consumption of Standard Fuel in the Cement Industry of the USSR, 1950, 1955, and 1960 18 5. Labor Productivity and Estimated Labor Force at Cement Plants in the USSR, Prewar, 1950-55, and 1957 20 6. Productive Capital Stock per Metric Ton of Clinker Produced in the USSR, Selected Years, 1940-56 22 7. Production of Cement and Number of Cement Plants in the USSR, Selected Years, 1940-60 25 8. Capacity and Production of Clinker in Rotary Cement Kilns in the USSR, 1940 and 1950-55 26 9. Relationship of the Estimated Number of Rotary Cement Kilns to Total Production and Number of Plants in the USSR, Selected Years, 1949-65 28 10. Capital Expenditures in Relation to the Capacities of Cement Plants'and Kilns in the USSR, 1955 29 - vi - S-E-C-R-E-T 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Page U. Specifications of Large Cement Plants in the USSR, 1956'and 1960 Plan 30 12. Interrelationships Between Regional Produc- tion and Consumption of Cement in the USSR, 1950 and 1954-56 32 13. Regional Production and Consumption of Cement In the USSR, Selected Years,.1950-60-.. . . . 34 14. Estimated Soviet Imports of Cement from Four European Satellites, 1950-52 4o 15. Total imports of Cement into the USSR, 1956 41 16. Estimated Exports of Cement from Communist China to the USSR, 1953-56 42 17. Quantity of Cement Required for Production yof' Standard Concrete in the USSR, by Grade, -1955 18. Average Grade and Effectiveness of Basic Types of Cement in Construction in the USSR, Selected Years, 1940-57 19. Plan Fulfillment and Estimated Production of Cement Plants in the USSR, by Region and by Republic, 1956 43 44 50 20. Labor and Electric Power Inputs of Cement Plants in the Ministry of the Construction Materials Industry of the USSR, by Size of Plant, 1955 61 21. ProduCtiOn of Cement in the USSR, by Type, 1940 and 1950-55: . 62 22. Distriution of' Production of Cement in the USSR, by Republic, Selected Years, 1940-60 63 S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Illustrations Following Page Figure 1. Facilities Required to Produce Portland Cement (Chart) 4 Figure 2. Production of Cement in the USSR, 1940 and 1950-60, and in the US, 1940 and 1950-57 (Chart) Figure 3. Production and Consumption of Cement in the USSR, by Economic Region, 1955 (Map) 34 S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 RR 155 S-E-C-R-E-T (Project 47.1092) THE CEMENT INDUSTRY OF THE USSR* 1950-60 Summary The cement industry of the USSR, although second only to.that of the US in total production, has chronically been unable to satisfy the needs of the vigorously expanding Soviet economy for this basic construction material. Through 1955, production of cement increased at about the same rate as other producer goods (excluding machinery), but during 1956-60 it is to increase at one of the highest rates planned for any major industrial commodity. The downward revision of the 1957 and 1960 Plans and the probable underfulfillment of the latter suggest that the shortage of cement will continue to hinder construction at least through 1960 and that the USSR will remain a net importer of cement. During the Fifth Five Year Plan (1951-55), production of cement Increased about 120 percent,** which was a slight overfulfillment of the original plan for the period but a slight underfulfillment of the revised plan. The production Plan for 1960 set forth in the Sixth Five Year Plan (1956-60) has already been revised downward. The new plan envisages an increase in production of cement of 131 percent above the level of 1955 and an increase in gross industrial produc- tion of 65 percent. This large increase in production of cement is planned to relieve the shortages experienced during the Fifth Five Year Plan, to allow for an increased amount of cement per unit of construction, and to supply the sharply expanding program for pre- cast reinforced concrete. In the original Sixth Five Year Plan the industry relied for an increase in production of cement primarily on the completion of 27 new plants, which were to be of higher than average capacity, and to a lesser extent on the expansion of production at existing plants. The increase in production was to be accompanied by a doubling of labor productivity, a general lowering of costs,*** and a high degree * The estimates and conclusions in this report represent the best judgment of this Office as of 1 May 1958. ** The average annual increase in production of cement in the USSR was greater than that achieved in the US during this period, but the gap widened between the total tonnage produced in the two countries. *** The cement industry reportedly has a higher cost of capital in- vestment in relation to total output costs than any other industry in the USSR, and this cost per ton of output is believed to be increasing. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T of regional self-sufficiency in production and consumption. This latter goal was to be attained primarily by building 17 of the new plants in the Eastern Regions.* The revised production goal for 1960, however, calls for the completion of only 16 new plants, or 1 less than was originally planned for the Eastern Regions alone. This will retard the expansion of production, particularly in the Eastern Regions, and will prevent a substantial improvement in regional self-sufficiency by 1960. In 1956, the first year of,the Sixth Five Year Plan, production of cement fell considerably below the modest planned increase, and only 1 of the 5 cement plants scheduled for completion and operation during the year began operating. In 1957 the original plan was lowered considerably, and this new plan was expected to be overful- filled. The extent of the overfulfillment, however, was less than anticipated, and only 4 of 6 scheduled new plants began operating. The 1958 Plan is low in comparison with the level of production planned for 1960. The shortcomings of the cement industry as shown in 1956 and 1957 as well as the modest 1958 goal make highly improbable the achieve- ment of even the revised production goal of 52 million tons** for 1960. The USSR is therefore likely to remain a large net importer of cement from the European Satellites and Communist China in spite of Soviet exports to underdeveloped countries -- which, however, are small. I. Technical Definitions. Cement may be defined as any substance capable of binding frag- ments of solid matter into a solid mass. In this report the word cement refers to hydraulic cement -- that is, cement which is acti- vated by water and will harden or set after water has been added. Cement must be used in concert with aggregate and water to make a * Including Regions VIII through XII. The Western Regions include Regions I through VII. Tonnages are given in metric tons throughout this report. - 2 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T usable material. It may be mixed with sand and gravel to make con- crete,* with sand and lime to make masonry cement (mortar), or with asbestos to manufacture asbestos cement products. The most important and most common hydraulic cement is called portland cement. During the Fifth Five Year Plan, portland and port- land slag cement accounted for about 80 to 85 percent of all hydraulic cement produced in the USSR.** Portland cement is produced by burn- ing a finely ground mixture containing limestone, silica, alumina, and iron oxides in certain definite proportions and then grinding the resulting clinker with a small quantity of gypsum. Portland slag cement is composed of clinker and metallurgical slag.*** The raw materials for the clinker are limestone and slag. Gypsum is also added in the final grinding process. The actual manufacturing process of portland cement is illustrated in Figure 1.**** Portland cement may be endowed with special qualities by the addition of small quantities of additivest or by special post-kilning processes. Some of the special types of portland cement are the following: rapid-hardening or high early strength cement (attaining a high degree of strength within 24 hours), sulfate-resisting cement (largely unaffected by certain chemicals), tamponage or oil well cement (used to line oil wells), white or decorative cement, and air-entrained cement (resisting scaling and the effects of tempera- ture changes). Another important type of hydraulic cement is pozzuolana, or portland-pozzuolana, cement, which is composed of ground portland clinker and pozzuolanic materials.tt It is the third most important type of cement in the USSR, accounting for roughly 10 to 15 percent of total production of cement during 1950-55.** * Most cement is used in concrete, which is often incorrectly referred to as cement. ** See Appendix A, Table 21, p. 62, below. *** Metallurgical slag used in cement manufacture is composed pri- marily of burned limestone which has been added as a flux in the refining of iron ore. **** Following p. 4. t In addition to slag and gypsum, various chemicals may be added in the final grinding process to impart special qualities to the cement or to facilitate grinding. tt These are predominantly siliceous minerals, which when finely ground can combine with lime in the presence of water. Natural ma- terials include pumice stone and certain shales and clays. Fly ash is also used as a pozzuolana. - 3 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T II. Problems of Cement in the Soviet Economy. Numerous statements in the Soviet press indicate that the con- tinuing shortage of cement is a major problem confronting the Soviet economy. The periodical Stroitel'naya gazeta asserted that "the scarcity of cement has become an important hindrance to the industri- alization and expansion of construction" and that it was necessary to Increase the capacity of the cement industry at a faster rate than the rate for all other branches of the construction industry. li* Production of cement has been insufficient for the needs of the Soviet economy for many years. In an attempt to supply the needs of the economy more adequately in 1960, the original Sixth Five Year Plan called for a 145-percent increase above the level of 1955. 2/ The revised plan calls for a 131-percent increase in production of cement and for a 65-percent increase in gross industrial production. 3/ In addition to increasing production of cement, it is planned to im- prove distribution and to reduce waste. The USSR plans to improve distribution by decreasing the average length of haul, thus easing the burden on the transportation system, especially the railroads.** Cement is wasted by poor storage and careless hauling. Because of these factors, organitations performing one-third of the construc- tion-installation work in the economy used 702,000 tons more cement in 1955 than was originally allocated in the plan (that is, about 3 percent of the total cement consumed). Again, because of these factors, 290,000 tons more were consumed in the first half of 1956 by 18 ministries and departments than were prescribed in the plan. III In addition, cement is a semiperishable commodity which deteriorates over time because of the absorption of atmospheric moisture. One method used to reduce the losses of cement from deterioration is to ship clinker (which is not perishable) to grinding installations that are located in the immediate areas where consumption of cement is great. .5/ Another major problem confronting the Soviet cement industry is the problem of increasing demand. In the USSR the proportion of cement in concrete*** and the use of concrete in construction are ** For a more complete discussion of this problem, see p. 33, below. IX, C, *** Cement must be combined with an aggregate ;to become a usable building material: most of it is combined with sand and gravel to make concrete. A considerably smaller percentage of the total cement produced is mixed with lime and sand to make masonry cement (mortar) or is combined with asbestos to make asbestos-cement products. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 50X1 I Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 FACILITIES REQUIRED TO PRODUCE PORTLAND CEMENT Figure 1 OVERBURDEN . (TOP SOIL), AST HOLE DRILLING RIG RAW MATERIAL COMBINATIONS OF LIMESTONE SHALE. OYSTER SHELLS CLAY. MARL. IRON Op/ SLAG &SILICA SAN EXPLOSIVES MAGAZIN POWER VIBRATING SHOVEL 5CREEN tvc% HAmmER oc. 1 miLL40 1 et TUBE ,j,., MILL, ? ELEVATOR-- DUMP TRUCK ...,-, C?.... , , 74,144.ett, see 1 41-yfis ci6-:--- on_- . r. tkz,:-. -- ,----., s -- ..., 14usS-vs- s -5-- ?- SLURRY ??.-- FEEDER?'( , SLURRY PUMP:7 0. CLAY WASH MILL .???-? ELEVATOR DRY MIXING G. BLENDING SILOS. GROUND RAW MATERIAL STORAGE I I f PNEUMATIC PUMP PROPCIRTIONNG CIC2 EQUIPMENT VERTICAL GRINDiNG ico 1 -MILL a G AIR. 9- %VP- 'SEPARATOR , PNEUMATIC ,.....")--PUrbip CLAY DUMP PIT TRUCK VIBRATING --'I SCREEN .?? or M ROPORTIONING S.( IL i L EQUIPMENT ?le ??, TUBE I WATER BALL ADM iy CkG SLURRY STORAGE BASINS STACK 14.0.? Ohne SLURRY MIXING AND BLENDING TANKS E34 ron SLURRY PUMP NO 10% ?4.0 CLAY SLURRY STORAGE BASIN SLURRY PUMP seseN? ,tt GC' POWER SHOVEL FUEL PULVERIZED COAL. OIL OR GAS RAIL DELIVERY OF ORE. SLAG. SILICA SAND. GYPSUM 111% 41% GYPSUM 1C.N? ?4, CLINKER STORAGE LINKER BALL TuBE MILL MILL. ' GYPSUM PROPORTIONING AIR EQUIPMENT SEPARATOR *0 11 P.- DUST COLLECTOR e ctic114101t '4; KILN te , FEEDER FLOW OF RAT/MATERIAL REPAR SHOP STOREROOM LOCKER R00145 ACKING BULK LOADING PORTLAND CEMENT IS SHIPPED IN BAGS AND IN BULK OFFICE C, LABORATORY SUB-STATION 27044 10-58 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Increasing. In the latter half of 1954 an average of 300 kilograms (kg) of cement was used to make 1 cubic meter (cu m) of reinforced concrete.* ?2/ In the first half of 1955 the average was increased to between 300 and 350 kg, I/ and again in January 1956 the upper limit of the range was increased to 400 kg per cubic meter. Consumption of concrete and reinforced concrete in construction is planned to be increased 150 percent in 1960 compared with 1955. 2/ The most'dynamic element in this increase is the production of pre- cast reinforced concrete, which by 1960 is to be about 430 percent greater than in 1955. 12/ A good indication of the increasing use of cement in the Soviet economy is the relationship of consumption of cement to the value of construction, as shown in Table 1. Table 1 Consumption of Cement per Million Rubles of Construction in the USSR 2/ Selected Periods, 1933-60 Consumption Index Period (Metric Tons) (1951-55 = 100) 1933-40 h/ 187 83 1951-55 hi 226 100 1960 2/ 315 139 a. 21/. In 1 July 1955 rubles. b. Yearly average for the period. c. Estimate on the basis of the original Sixth Five Year Plan. Thus from the period of the Fifth Five Year Plan (1951-55) to 1960 the use of cement per million rubles** of construction is to increase 39 percent. Reasons for the increasing demand for cement are as follows: 50X1 * Concrete with steel bars or wire encased in it to give added strength. ** In 1 July 1955 rubles. (Ruble values in this report, except where ? otherwise indicated, are expressed in current rubles and may be converted to US dollars at the official rate of exchange of 4 rubles to US $1. This exchange rate, however, does not necessarily reflect the true dollar value.) -5- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T 1. Because of the acute shortage of cement during the Fifth Five Year Plan, the norms for the expenditure of cement had to be decreased. A growth in the ratio after that period would therefore have been necessary even without a change in the techniques of con- struction. 2. Precast reinforced concrete structural elements are being substituted for metal and wooden structural elements. 3. The range of uses for cement is being increased for example, more concrete roads are being constructed. U. The share of those types of construction for which the cement requirements are relatively high (roads and dams) is increas- ing more rapidly in relation to other types of construction. In an attempt partly to offset these increases in the ratio of cement to construction, it is planned to effect economies in the use of cement. One method of economizing requires more careful screen- ing and crushing of sand, gravel, and stone. The resulting higher quality aggregate would permit the use of less cement. 12/ Another means of saving manufactured cement is to substitute more ground slag or lime for cement. 11/ III. Development, 1951-55. Production of cement in the USSR during the period of the Fifth Five Year Plan (1951-55) continued to be insufficient to fill the needs of the expanding Soviet economy. The annual production plans for 1951 and 1952 were not fulfilled, but a slight overfulfillment of the original Five Year Plan goal was attained.112/ The plan had called for 1955 production to increase by 120 percent above the level of 1950. 12/ This original goal was slightly overfulfilled, but, in response to the continued shortage of cement, a revised production plan for 1955 was announced which called for a 22-percent increase above the level of 1954, 1.67 or a total production of 23.2 million tons of cement. This plan was fulfilled by only 97 percent. Conse- quently, there were interruptions in construction work on a number of important projects, including 3 important hydroelectric power stations and a heavy forge equipment works, and drilling operations were held up at 2 oilfields. 12/ During 1951-55, production of cement in the USSR increased at an average annual rate of 17.1 percent, so that by 1955 the Soviet cement industry produced about 12.3 million tons more cement than it had produced in 1950. During the same period the US cement industry increased its production at an average annual rate of only 6.5 percent, - 6 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T but production in 1955 exceeded the level of 1950 by about 14.4 mil- lion tons. Thus) although the rate of increase was lower in the US than in the USSR, the tonnage increase of 1955 above the level of 1950 in the US was 17 percent greater than in the USSR.* Production of cement in the USSR, 1940 and 1950-60) and in the US, 1940 and 1950-57, is shown in Table 2** and in Figure 2.*** Because of unsatisfactory construction of cement plants, during the Fifth Five Year Plan the schedule for the introduction of new capacity was not fulfilled in any year. Completion of new plants frequently required from 6 to 8 years, and some of those plants which were completed were so poorly constructed that the structures collapsed. 22/ During this period (1951-55), however, 12 new plants were put into operation. Better results were apparently obtained in expanding the output of existing plants. For example, in 1952 it was announced that the quarrying and hauling of limestone at cement plant quarries had been 95 percent mechanized and that the quantity and quality of cement produced in existing kilns had been increased. 21/ Modernization of kilns was also part of the extensive program to increase the output of existing plants. For instance, in 1952 and 1953, 68 rotary kilns were to be improved. 22/ The relatively poor results achieved in activating new cement plants compared with raising the output at existing plants were particularly evident in 1955. In that year, about 60 percent of the increase in production of cement was planned to be accomplished by improved utilization of existing plants, and this was planned to account for all of the increase in the first half of the year. 11/ Although the planned increase in production was not achieved during the first half of 1955, there was an increase of 22 percent above the level of the first half of 1954.212/ This is the same rate at which production during all of 1955 was planned to increase above the level of 1954. 2.51 During the second half of 1955, planned in- creases in production were expected to be achieved by newly com- missioned cement plants. 2?/ The plan for commissioning new plants was not fulfilled, 22/ and production for 1955 increased only 18 percent above the level of 1954 (see Table 2*(-). * In 1957 the per capita production of cement in the USSR was 142 kg 113/ and in the US, 310 kg ** Table 2 follows on p. 8. *** Following p. 8. - 7 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 2 Production of Cement in the USSR, 1940 and 1950-60 and in the US, 1940 and 1950-57 Year USSR US Production (Thousand Metric Tons) Change from Previous Year Production (Thousand Metric Tons) Change from Previous Year Percent Absolute (Thousand Metric Tons) Percent Absolute (Thousand Metric Tons) 1940 1950 1951 1952 1953 1954 1955 1956 1957 1958 (Plan) 1959 1960 5,675 2/ 10,194 2/ 12,070 2/ 13,910 2/ 15,961 2/ 18,992 2/ 22,484 2/ 24,861 2/ 28,900 f/ 33,900 17 41,000 5./ 50,000 g/ 25 18 15 15 19 18 11 16 17 21 22 2,047 1,876 1,840 2,051 3,031 3,492 2,377 4,039 4,800 7,300 9,000 22,568 h/ 39,146 2/ 42,410 2/ 42,952 2/ 45,504 2/ 46,896 2/ 53,535 2/ 56,5oo 2/ 53,100 2/ 8 8 1 6 3 14 6 -6 2,951 3,264 542 2,552 1,392 6,639 2,965 -3,400 d. 11/ e. 32/. Production of natural, slag, and hydraulic lime cement is estimated to have been 170,000 tons per year. Totals are rounded. f. g. _311/. The original goal of 55 million tons for 1960 was revised downward- to 52 million tons. To arrive at the goal of 52 million tons, an average annual increase of 21.6 percent would be required for the period 1958-60. Because the 1958 planned production of 33.9 million tons is only a 17.3-percent increase above the level of 1957, an increase of 23.9 percent for 1959 and 1960 would be required to achieve.the 1960 goal. On the basis of the percentage increase planned for 1958 and past percentage increases, this rate of increase (23.9) is assumed to be too high, and the average annual rate required for the entire period 1958-60 (21.6 percent) is applied to 1959 and 1960 to arrive at an estimate of 41 million tons for 1959 and an estimate of 50 million tons for 1960. The maximum estimated range of underfulfillment is zero to 7 million tons. -8.. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 PRODUCTION OF CEMENT IN THE USSR, 1940 AND .1950-60 AND IN THE US, 1940 AND 1950-57 Figure 250X1 1940 25967 10-58 I Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T IV. Development, 1956-57. A. Plan Underfulfillment in 1956. In 1956 the cement industry of the USSR again failed to ful- fill its assigned quota in spite of the modest increase planned. This poor showing is highlighted by comparison with 1955, as shown in Table 3. In spite of the smaller planned percentage increase in Table 3 Plan Fulfillment and Increases in Production of Cement per Year In the USSR 1955-56 Increases in Production Above Previous Year Year Plan Fulfillment (Percent) Planned Actual Percent Amount (Million Metric Tons) W Percent12/ Amount (Million Metric Tons) 1955 1956 972/ 93 22j 19d/ 4.2 4.3 18 11 3.5 2.4 a. Derived from the previous b. See Table 2. c. 12/. Revised plan d. Derived from Table 2 column and from Table 2 (p. 8, above). production, plan fulfillment in 1956 was lower than in 1955, and the percentage increase achieved was less. Production increased by only 2.4 million tons in 1956, although in 1955 it had increased by 3.5 million tons. The cement industry (along with a number of other im- portant building materials industries) 11/ had performed even more poorly in the first half of the year, achieving only a 7-percent in- crease above the, level of the first half of 1955. In September 1956, Kaganovich, who at that time was a First Deputy Chairman of the Council of Ministers of the USSR, was again appointed Minister of the Construction Materials Industry, replacing P.A. Yudin, who had died in April 1956. This appointment was generally interpreted as a measure of the importance of the industry and of the - 9 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T need to increase production.* 11.31 Under the Ministry of the Con- struction Materials Industry the control apparatus for the cement industry which Kaganovich inherited again in 1956 apparently re- mained the same as in 1950. In June 1956, there were three main administrations for the cement industry directly subordinate to the Ministry, 22V which in 1955 controlled 90 percent of the exist- ing cement plants in the USSR.** The remaining plants were under the jurisdiction of other administrative organizations. The operating plants of the industry were thus subject to highly cen- tralized control.*** In early October 1956, Kaganovich emphasized the primary role of the cement industry in fulfilling the construc- tion program and spoke of the "urgent measures" adopted by the Party Central Committee and the Council of Ministers to insure the fulfillment of the 1956 Plan of the cement industry. 12/ In spite of these measures and the efforts of Kaganovich, the plan was fulfilled by only 95.3 percent by plants in the Western Regions and 88.9 percent by plants in the Eastern Regions for an over-all fulfillment of 93.1 percent. In addition to the underful- fillment, for the first time in a number of years the average quality of the cement was "considerably reduced."**** L4.2/ By the end of 1956, there were 75 operating plants in the USSR, or 1 more than in 1955, and the average annual output per plant (including new plants) had increased 9 percent, from 304,000 tons to 331,000 tons.t In 1956, nearly one-half of the operating plants of the cement industry of the USSR failed to fulfill their assigned quotas. At several plants the total output of cement in 1956 was lower than in 1955. Production lagged particularly in the Eastern Regions, where 14 out of 22 operating enterprises failed to fulfill the plan. LI As indicated in Appendix A,tt a minimum of 29 out of the 65 plant and combines listed failed to fulfill their 1956 quotas. * Kaganovich had been Minister of the Construction Materials In- dustry after World War II, which was a particularly critical period for the industry. ** See Appendix A, Table 20, footnote a, p. 61, below. *** Under the Economic Reorganization Law promulgated in the spring of 1957, the Ministry of the Construction Materials Industry was abol- ished.)22/ By July 1957, nearly all the cement plants had been trans- ferred to the subordination of the regional councils. At the begin- ning of 1958 there were cement plants in 45 of the 105 regions. LI" **** A decline in the quality of cement suggests that the existing facilities were being strained to attain an increased quantity of production, for the quantity of cement produced may be increased if quality standards are lowered. t See Table 7, p. 25, below. tt See Appendix A, Table 19, p. 50, below. -10- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T One reason for plan underfulfillment in production of cement In 1956 was the defective operation of existing facilities. The . rapid growth of the cement industry has resulted in a shortage of sufficiently trained and experienced personnel as well as a shortage of equipment. Causes for the failure to operate facilities fully were as follows: 1. Unsatisfactory quarry operations. At a number of plants the quarries were unable to provide sufficient limestone to operate the kilns at full capacity.112/ 2. Poor preparation of plants for winter operation. More than one-half of the plan underfiafiLlment in the first quarter of 1956 was caused by inadequate preparations for winter. Itg The main element in the preparation for winter is a corollary of the above cause, in that a surplus of raw materials must be stockpiled for winter because of the difficulty in operating quarries at sub- freezing temperatures and with snow on the ground. Kaganovich had emphasized winter preparations in a speech in early October, 47/ and orders were issued that by 1 December 1956 the cement industry was to have stockpiled almost 1 million tons of limestone, chalk, and marl; about 300,000 tons of calcined gypsum; and more than 600,000 tons of granulated slag. 11.44/ 3. Poor maintenance and repair of equipment. Kaganovich had stated that by the fourth quarter of 1956, repairs at plants were to be systematized and a stock of repair materials and spare parts was to be accumulated by each plant and was to be kept at a constant level. 112V U. Inadequate supply of quarrying equipment and materials for repair and operational purposes at the plants. 22V 5. Shortages of coal. 51/ 6. Low operating efficiency because of nonobservance of technical rules of operational efficiency 22/ and because of the low level of technical guidance at some plants. 22./ 7. Slow introduction of automation and mechanization. Another, and the principal, reason for plan underfulfillment in production of cement in 1956 was the failure to complete nevbplants and capacities on schedule. It was planned that additions to capital investment in the cement industry in 1956 should more than double the level of 1955. 22/ The plan called for an increase in production of 4.3 million tons, but an increase of only 2.4 million tons was - 11- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T achieved)* and production therefore fell 1.9 million tons Short of the plan. The failure to complete new plants and capacities on schedule caused 1.1 million tons of this shortfall) .5.a/ or about 6o percent of the total shortfall. During 1956, facilities with a potential capacity of about 3.7 million tons of cement were not put into operation as planned, so that the plan for new capacity was Implemented by only 30 percent. 21/ In addition) modernization of kilns lagged, especially in the Eastern Regions, where, in May 1956, only 5 of the 12 kilns which were to have been modernized by that time had been completed. Lg./ The planned completion of new plants was even more seriously retarded. During 1956, 5 new plants were scheduled for completion, 59/ of which only 1 was operational during 1956 and 4 were not complete . A brief summary of conditions at the five plants follows: 1. Rustavi. Commissioned (put into operation) in May 1956, ..?2/ this plant had the lowest plan fulfillment (59.5 percent) of any cement plant in the USSR.** 2. Novo-Zdolbunov. This plant should have been commissioned in August .1955, 61 but the first kiln did not begin operating until June 1956 2 and the second kiln until September 1956, and the plant was not commissioned until March 1957. 3. Irkutsk (Angarsk). The construction plan of this plant was only 83 per- cent fulfilled in the first 5 months of 1956. L4../ A new completion date of December 1957 was set for the plant, with partial operation scheduled in October 1957. ?2/ 4. Yemanzhelinsk. The two kilns in this plant began operating around the beginning of February 1957, and at the end of the month the grinding installations began operating. .6j./ Construction of the plant started in 1948. fl/ * See Table 3, p. 9, above. ** See Appendix A, Table 19, p. 50, below. -12- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T 5. Alekseyevsk. This plant has been under construction for more than 5 years. Production was scheduled to begin in 1954, Z./ but the plant was not operational until 1957. ?2/ The failure to increase capacity on schedule) especially in commissioning new plants, has been the chief deterrent to increasing production in the past and will continue to be the major problem in the future. B. Plan Revision and Fulfillment, 1957. At the end of December 1955 it was stated in Stroitel'naya gazeta that the output of cement in the USSR in 1957 was to be 1.6 times that of 1954, 12/ or approximately 30.4 million tons. This plan was subsequently lowered to 28.5 million tons. In June 1957, however, it was announced that the cement industry had overfulfilled the production plan by 365,000 tons during the first 5 months of the year, and the industry pledged a 600,000-ton overfulfillment for the year 11/ (29.1 million tons). The actual 1957 production was 28.9 million tons,* or 400,000 tons above the revised plan but about 1.5 million tons under the original plan. To attain the 1960 revised goal of 52 million tons, 12/ an average rate of increase of 18.3 per- cent is required in each of the 5 years 1956-60.** In the first 2 years an average annual rate of increase of only 13.4 percent was attained, however, necessitating an average rate of increase of 21.6 percent for the intervening years if the 1960 goal is to be achieved. In 1957, 4 of 6 new cement plants which had been planned were put into operation. The plants commissioned were those which had been scheduled for operation in 1956 -- that is, Novo-Zdolbunov, Yemanzhelinsk, Alekseyevsk, and Irkutsk (Angarsk).*** 15./ The re- maining 2 plants which were not commissioned (Kuybyshev and Semipala- tinsk) 1?/ are scheduled to be completed in 1958 along with a plant at Chimkent. In addition to the new plants completed in 1957, 7 new lines (kilns and auxiliary equipment) were added during the year. 21/ Total commissions in 1957 amounted to 3.6 million tons of capacity. /ig/ See Table 2, p. 8, above. 4(-* During the Fifth Five Year Plan, production increased at an aver- age annual rate of 17.1 percent. See Table 2. *** The first 3 plants were operative in the first quarter of 1957 and the last plant at the end of the fourth quarter. 13/ A total pro- duction of more than 2.5 million tons is expected from these plants In 1958. 111/ -13- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T During 1950-57, 20 new cement plants were-actiVated) 73 new rotating kilns were completed (at the new and existing plants)) and at the existing plants 82 rotating kilns and 22 automatic shaft kilns were reconstructed. 12/ V. Planned Development, 1958-60. The planned production of cement in the USSR in 1960 was lowered in the revised plan from 55 million tons to 52 million .tons, which is an increase of 131 percent above the level of production in 1955. The necessary average annual rate of increase to achieve the revised 1960 Plan for production of cement would be 18.3 percent,* Which is one of the highest rates of increase planned for the production of a major industrial commodity. If the 1958 goal of 33.9 million tons is reached, the average annual rate of increase for 1956-58 will be 14.7 percent; and the average annual tate required for 1959-60 will,be 23.9 percent.** The attainment of this very high average annual rate of increase (and of the 1960 goal) is doubtful on the basis of the following factors: 1. Previous Production Failures. As shown in Table 3,*** the cement industry failed to attain the assigned goals in 1955, and there was an even greater failure in 1956. In 1957) overfulfillment was possible only because of substantial lowering of the plan.xxxx 2. Primary Dependence on New Plants. According to the original Plan for 1960, 32 percent of the increase in cement output in 1960 was to be obtained from greater efficiency in the use of existing facilities and froM the expansion and reconstruction of existing plants. The remaining 68 percent of the increase in production was ta.be obtained from newly constructed plants. fi/ During 1956-60) 27 new plants were to be completed, 17 of them in'the Eastern Regions, where 4 plants were to be built in Kazakh SSR, a in Turkmen SSR, and 12 in the RSFSR. In the Western Regions, 7 plants were to be built in the RSFSR encl.]. each in the Georgian SSR, the Ukrainian SSR, and the Moldavian SSR. Derived from Table 2, p. 8, above) and the 1960 Plan. Derived from Table 2. P. 9, above. See IV, B, p. 13, above. -14- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T The revised plan of 52 million tons of production of cement for 1960 is to be attained with the completion of 16 new plants.* 93/ The substantial decrease in the number of new plants to be completed by the end of 1960 probably caused the decrease in the 1960 Plan. In addition, it is probable that, to attain the 52- million-ton goal in 1960, the expansion and reconstruction of exist- ing plants will be increased.** Although construction of new plants is still the most important means of increasing capacity, the new plan for 1959-65 envisages a decrease in the dependence on new plants relative to the other means of increasing capacity. Under this plan, 12.2 percent of the increase will be derived from modernization of existing equipment and intensification of technological processes, 28.9 percent from expansions of existing plants, and 58.9 percent from new plants. f211./ It was announced in January 1956 that, in order to ful- fill the 1960 Plan for cement, construction of new plants should re- quire no more than 2.5 to 3 years, although, in the past, construc- tion has frequently required from 6 to 8 years. ?2/ In spite of the requirement to accelerate construction of cement plants, only 1 of the 5 scheduled for completion in 1956 began operating during the Year,*** and in 1957 only 4 of 6 scheduled for completion during the year began operating.**** Thus the principal means for increasing capacity and production appears to be causing the greatest amount of difficulty. 3. Shortage of Equipment. An enormous quantity of equipment will be required for the expansion envisaged for the cement industry by 1960. In the past a considerable amount of the equipment has been imported, largely from East Germany. In 1954 the USSR received equipment valued at 72 million rubles, or 75 percent of East German exports of cement plant equipment during that year. ff./ In 1955, East Germany agreed to export 5 cement plantst,to the USSR and tentatively planned to export the same number in 1956. ?.2/ In 1957 it Vas planned to * The locations of the 11 plants which have been dropped from the original 1956-60 Plan are unknown. ** The cost (per ton of capacity) is generally greater in con- structing new plants than in adding to existing plants. *** See IV, A, p. 9, above. **** See IV, B, p. 13, above. In 1958, 3 plants are planned to be- gin operation, and construction is to commence on 2 new plants (Noviy Spartak and Angren). Leg t This term refers to equipment, probably not the complete equip- ment necessary for a cement plant. - 15 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T export more than 100,000 tons of equipment valued at nearly 290 mil- lion rubles 22/; and in May 1957, East Germany agreed to export a total of 12 plants to be delivered in 1959 and 1960, with a total annual capacity estimated to be nearly 10 million tons. 21/ In Sep- tember 1957, East Germany agreed to deliver during the next few years 23 cement plants with a total annual capacity estimated to be 18 mil- lion tons. 22/ The USSR is not presently capable of producing all of the equipment required for cement plants but plans to be self- sufficient by 1961. 22/ The magnitude of the East German exports Indicates that the USSR is almost wholly dependent on that country to meet its plans for expansion. Because East Germany has not always been able to fulfill its commitments in the past, 2V the USSR and Poland have agreed to supply some of the necessary raw materials and parts to compensate for the greatly increased Soviet requirements for equipment for cement plants in the future. 92/ Nevertheless, East Germany will probably continue to have difficulty in fulfilling Soviet requirements. This conclusion is supported by Soviet inquiries made to a number of West European firms during 1956 and 1957 concerning machinery for cement plants. 2g VI. Planned Development After 1960. Production plans for 3 years after 1960 have been announced for the cement industry of the USSR. It is planned to produce 60 million tons of cement in 1961, 27/ which is a 15.4-percent increase above the revised plan level for 1960.* It is probable, however, that the estimated underfulfillment of the 1960 Plan will be followed by a similar underfulfillment of the 1961 Plan. Preliminary data on the production plan for 1965 give figures ranging from 76 million tons to as high as 82 million tons. 21Y An average annual rate of in- crease of from 7.9 percent to 9.5 percent above the level of the re- vised production plan for 1960 is required to attain this goal. A third plan was announced by Khrushchev in November 1957 as a preliminary estimate.(22./ He stated that production of cement in ap- proximately 15 years 1972) would be between 90 million and 110 million tons annually. The midpoint (100 million tons) of these estimates of production for 1972 would be achieved with an annual increase of only about 3 to 4 percent above either of the planned levels of pro- duction for 1965 and can probably be easily achieved by that time. These statements indicate that if either 1965 goal is achieved the 1972 goal can be easily attained and the plan may possibly be in- creased.** See Table 2, footnote a, p. 8, above. ** At a cement workers' meeting in February 1958 it was stated that an annual production of 110 million tons of cement may be attained by 1970 and may increase to 150 million tons in 1975. 222/ - 16 - STE-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T VII. Inputs. A. Materials. The material inputs necessary to produce cement include raw materials, fuel, and power. The raw materials utilized are princi- pally limestone, some clay and shale, and in some cases blast furnace slag.* In the US the total weight of these raw materials is approxi- mately 170 percent of the weight of the output of cement,** 102/ but In the USSR (because of the greater use of slag) the total weight is assumed to be approximately 160 percent.*** Accordingly, it is esti- mated that about 46 million tons of raw material were necessary to produce 28.9 million tons of cement in the USSR in 1957.**** These materials are almost always quarried near the site of the cement plant,t and the quarries are normally part of the plant operation. Slag usually comes from a neighboring metallurgical installation. The cement industry is one of the principal consumers of fuel in the USSR, and in a number of plants the consumption of fuel per ton of cement produced has been increasing. 105/ Coal is the prin- cipal fuel, but fuel oil and gas are also used, sometimes in combina- tion with each other or with coal. It is planned, however, to in- crease the use of gas, and a number of large plants are being equipped to use gas. 106/ The consumption of standard fuel in the USSR is shown in Table 4.tt Electric power requirements for production of 1 ton of cement In 1951 were reported to be 85 kilowatt-hours (kwh).ttt 107/ Total consumption of electric power in 1951 by the cement industry was therefore approximately 1 billion kwh.**** In 1957, production of * In cement made principally from limestone, 2 to 3 percent of gypsum is added in the final grinding process to regulate setting time and cement made with Slag may have up to 5 percent of gypsum added. 101/ ** Most of the loss of weight occurs in the kilns from' evaporation and chemical changes. *** In the US, slag accounts for about 1.5 percent of total raw ma- terials, 103/ while in the USSR, approximately 16.5 percent is slag. (In 1951-55, about 32 percent of Soviet production was portland slag cement -- see Appendix A, Table 21, p. 62, below -- Which includes approximately 50 percent raw ground slag. 104/) **** See Table 2, p. 8, above. t Gypsum and some other additives which account for a small per- centage of the weight of the final product may be shipped in from elsewhere. ft Table 4 follows on p. 18. ttt The estimated range of error is zero to plus 15 percent. -17- S-E7C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 4 Consumption of Standard Fuel 21 in the Cement Industry of the USSR 1950, 1955, and 1960 Consumption of standard fuel (kilograms) per metric ton of cement produced Production of cement (thousand metric tons) 1/ Total consumption of standard fuel (thousand metric tons) 1950 1955 1960 229.0 12/ 207.3 11/ 193 2/ 10,194 22,484 50,000 2,334 4,661 9,650 a. Standard fuel yields 7,000 calories per gram. Most of this fuel is coal, but the use of gas is becoming more significant. b. 108/ c. 109/. Plan for ,plants having 3 Production lines (kilns and the other necessary equipment to produce finished cement) and having annual capacities of 1.4 million tons in 1960. These are large plants, Perhaps consuming somewhat less than the average amount of fuel per unit of output because of greater efficiency. d. See Table 2, p. 8, above. 1 ton of cement was reported to require 100 kwh,* 110/ so that the total consumption by the cement industry in 1957 was approximately 2.9 billion kwh.** Firebrick is another commodity which is indirectly consumed In cement production. The firebrick, with which the kilns are lined, wears off from the heat in the kiln and from the abrasive action of the clinker at the rate of 1.9 kg of brick per ton of clinker. According to the original 1960 Plan of 55 million tons, 75,000 tons of firebrick, at 340 rubles per ton, were expected to be consumed. 111/ Proportionally, for the 1957 production of approxi- mately 28.9 million tons of cement,** 39,000 tons of firebrick costing about 13 million rubles were consumed. At the estimated 1960 production * The estimated range of error is zero to plus 15 percent. ** Based on Table 2, p. 8, above. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T of 50 million tons of cement,* 68,000 tons of firebrick costing about 23 million rubles will be consumed. Consumption of fuel and electricity varies considerably be- tween the individual plants. In 1955, 28.4 kwh of power were con- sumed per man-hour at plants producing more than 600,000 tons annually, while only 8.9 kwh were consumed per man-hour** at plants producing less than 100,000 tons annually (see Appendix A, Table 20***). 112/ Consumption even varies at plants of identical capacities. For example, in the second quarter of 1956 at two identical plants, both of which began operating at the same time, one consumed 26 percent more fuel per ton of clinker produced than did the other. 113/ B. Labor Force and Productivity. During the Fifth Five Year Plan the goal for labor produc- tivity in the cement industry of the USSR was probably fulfilled. This conclusion follows from the 5-percent overfulfillment of the 1954 goal in labor productivity 114/ by plants of the Ministry of the Construction Materials Industry and from the large increase achieved in labor productivity in 1955 above the level of 1954 (see Table 5****). Because labor productivity varies directly with the size of the plant, it is planned to increase the average plant capacity dur- ing the Sixth Five Year Plan.t It was found in 1955 that for each 100,000 tons of cement produced at plants with a low capacity there were at least 600 workers; at plants with an average capacity, about 200 workers; and at plants with a high annual capacity (from 700,000 to 750,000 tons), 92 workers.tt 115/ By 1960 the planners hope to have plants which produce up to 2,500 tons per worker and hope to double the labor productivity for the entire country over that of 1955. 1.1../ Thus it tay be inferred that they expect the average output per worker to be approximately 1,000 tons, so that, at the planned production for 1960 of 52 million tons,* the industry would employ 52,000 workers.ttt In 1965, at the * Based on Table 2, p. 8, above. ** The larger plants are more highly mechanized. *** P. 61, below. .**** Table 5 follows on p. 20. t See Table 7, p. 25, below. tt The larger plants are newer and more highly mechanized. See Appendix A, Table 20, p. 61, below, for average production per worker at plants of the various sizes. . ttt In Western Europe, annual output per worker rose from 560 tons In 1950 to 704 tons in 1955 and footnote continued on p. 227 - 19 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T planned production of 76 million tons* and the planned output of 1,200 tons per worker, the industry would employ about 63,000 workers. 22JV Table 5 Labor Productivity and Estimated Labor Force at Cement Plants in the USSR Ell Prewar, 1950-55, and 1957 Year Annual Production per Worker Estimated Labor Force 12/ Amount (Metric Tons) Index (1950 =100) Workers Index (1950 = 100) Prewar 1950 1951 1952 1953 1954 1955 1957 223 2/ 273i 305 g../ 341 I/ 377 sli 434 .g./ 5o4 ill 575 si 82 loo 112 125 138 159 185 211 25,300 37,300 39,600 4o,800 42,300 43,80o 44,600 50,300 68 loo 106 109 113 117 120 135 a. With the possible exception of the prewar (probably 1940) and the 1957 figures, the annual production per worker is for plants which were directly controlled by the Ministry of the Construction Materials Industry. In 1955 this Ministry controlled 90 percent of the cement plants in the USSR. b. The estimated labor force is derived from the first column and the total production of cement (see Table 2, p. 8, above). The estimated range of error for 1950-55 is zero to plus 8 percent. Plants which were outside the Ministry of the Construction Ma- terials Industry were smaller than the average of Ministry plants. c. 119/. Production of cement per worker in 1953 was 69.1 percent above the prewar level. d. 120/. The estimated range of error is zero tb plus 4 percent. Labor productivity was probably lower at plants which were not con- trolled by the Ministry of the Construction Materials Industry (see footnote a). e. 121/ 794 tons in 1956. In the US, annual output per worker rose from 1,513 tons in 1952 to 1,905 tons in 1955 and 2,033 tons in 1956. 117/ * See VI, p. 16, above. -20- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T The achievement of these plans for the increase of output per worker is possible, but an underfulfillment is more likely ? (especially in 1960) because of the magnitude of the planned in- crease and because of the relatively modest increase achieved by 1957 compared with these goals. C. Costs. The relative importance of the various inputs of the cement industry of the USSR is reflected in the costs of production. In 1955 the various costs of production in the cement industry accounted for the following Percentages of total costs* 123/: Percent of Total Raw materials 23.3 Fuel and power 38.4 Total wage payments 22.6 Amortization of plant and equipment** 9.3 Miscellaneous 6.4 Total 100.0 The categories of raw materials and total wage payments, which accounted for about 46 percent of the total costs in 1955, probably will decline proportionally because of increasing effi- ciencies in quarrying operations, the increased use of slag, and over-all increases in the productivity of labor. Amortization of plant and equipment, and to a lesser extent fuel and power, prob- ably will increase as a percentage of the total. The cost of amortization of plant and equipment or cost of capital investment in the cement industry is the highest in relation to total output cost of any industry in the USSR 122/ In addition, this cost per ton of clinker produced is ng, as shown in Table 6.*** ncreas * Percentages are derived by production measured in 1 July 1955 rubles. Ithe cost of production of 1 ton of clinker averaged 94.54 the costs of rubles in 1955 and 95.88 rubles in 1956 (probably in 1 July 1955 prices). 122/ ** for a long time the amortization period for new plants has been established at 25 years. 124/ *** Table 6 follows on p. 22. - 21 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 50X1 50X1 50X1 50X1 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Table 6 Productive Capital Stock per Metric Ton of Clinker Produced in the USSR 2/ Selected Years, 1940-56 Year Current Rubles Index (1950 = 100) 1940 134 54 1950 250 100 1955 286 114 1956 299 120 a. 126/ During the 8-year period 1950-57 the cost of production of cement decreased by 30 percent, and by 1965 the cost is expected to decrease by another 20 to 25 percent compared with 1957 (according to Soviet estimates). 127/ Thus in 1965 the cost of production of 1 ton of cement is planned to be almost halved compared with 1950. The attainment of this goal is probably possible if the use of slag as a raw material is considerably increased. VIII. Capacity of the Industry. A. Capacity and Production. The capacity of any given cement plant is usually measured on the basis of the potential.output of clinker from the kilns* plus the additives, all of which are ground into cement powder. The addi- tives include approximately 2 to 5 percent of gypsum** (to regulate the setting time), varying amounts of ground slag, and other minor additives to give certain desired special qualities to the cement'. The capacity of the industry is the total of the rated Capacities of all the individual cement plants. * The other processes carried out by the plant are generally planned to be sufficient to supply the kilns and process their output. These include quarrying, crushing, mixing, grinding, distribution, and storage. , ** See VII, A, p. 17, above. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T It is assumed that the Soviet cement industry utilizes a definition of annual capacity similar to that used by the Bureau of Mines in defining the capacity of the US cement industry. Annual capacity figures in the US are based on the producers' rated capac- ity (determined monthly), which is the production achieved over a period of continuous operation of the kilns with an allowance made for average annual "down time" caused by the necessity for normal periodic maintenance work. 128/ The failure of a plant to produce at its rated capacity may be caused by a decrease in the quality of raw materials, by inef- ficient operation, and by excessive down time for maintenance. A decrease in the quality of coal or cther fuels may require the mix to be passed through the kiln more slowly than is possible with a better quality of fuel which permits a higher heat. The use of lower quality raw materials in the mix may also require increased roasting time in the kiln but is more likely to result in a lower quality of clinker. This in turn reduces the output of the plant* because it lowers the permissible amount of additive to the clinker in the final grinding process. 129/ There are numerous causes of inefficient operation of plants, including lack of skill of the operators, poor condition of equip- ment, and poor coordination of the several production functions. These shortcomings cause wide variations in output and efficiency among the various plants. An example is the case of two identical plants which began operating at the same time. At one plant the consumption of fuel was 20 percent lower, the output of clinker and the average grade of the cement were approximately 20 percent higher, and the cost of the clinker was 4o percent lower than at the other plant. 130/ A continuing cause of kiln down time is the need for partial replacement of the firebrick which lines the kiln because of the heat in the kiln and the abrasion of the clinker. The quality of the firebrick and the time required to replace the wornout firebrick In the kiln thus have a considerable effect on cement output and capacity. For example, in November 1953, at 17 plants which probably had the best production records in the USSR, the average period be- tween necessary firebrick replacements in the kilns was 117 days. 131/ In 1956 the average life of a kiln lining, before the need for re- pairs, was from 100 to 105 days, 132/ and the average down time to repair the kiln was from 3 to 5 days. 133 Thus the average loss of production time of the kilns during 1956 from this cause was from 11 to 17.4 days, or from 3 to 5 percent of the total possible kiln * Assuming that the plant maintains its minimum quality standards. -23- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part-Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T operating time. Kiln relining is a costly process; one plant re- ported in September 1956 that relining one kiln cost the plant 150,000 rubles. 1111/ B. Capacity in 1955, 1957, and 1960. In 1955 the average capacity per cement plant in the USSR was 350,000 tons, 112/ and the average production per plant was 304,000 tons.* Thus the Soviet cement industry produced at approxi- mately 87 percent of capacity.** Production totaled 22.5 million tons, so that capacity is computed to have been about 26 million tons. By the end of 1960, capacity was planned to be 67 million tons.**** 136/ This increase in planned capacity would have been more than sufficient to achieve even the original production goal of 55 million tons in 1960, but it was also mentioned in conjunction with the revised goal of 52 million tons. 131/ Soviet planning ap- pears to be rather confused concerning additions to capacity. In Stroitel'naya gazeta the planned additions to capacity for 1957 were stated in February 1957 to be 5.9 million tons, in June to be 7.2 million tons, and in August to be 6.9 million tons. 138/ Fur- thermore, Soviet figures for planned capacity appear to be higher than necessary to fulfill the accompanying production goals. For example, during 1950-56 the plan for the introduction of new capac- ity was not fulfilled in any year, 112/ yet the annual production plans were fulfilled for a number of the years. During this period the plan for the introduction of new capacity was fulfilled by only 52.8 percent. 140/ C. Growth, Costs, and Efficiency. In the Soviet cement industry the number of plants has been increasing, but the average capacityt of the plants has been increas- ing at a faster rate, as indicated in Table 7.tt These increases in capacity (as measured by production increases in Table 7) have been accompanied by increases in kiln productivity which have resulted from increasing the output of existing kilns and from the installa- tion of larger, more productive kilns. Kiln productivity and capacity have increased as indicated in Table 8.ttt * See Table 7, p. 25, below. ** This figure is very close to the average annual utilization rate of rotary kilns in 1955 (see Table 8, p. 26, below). *** See Table 2, P. 8, above. **** this figure is stated to be a 40-million-ton 50X1 increase in capacity above the level of 1955. t Measured by the average production. tt Table 7 follows on p. 25. ttt Table 8 follows on p. 26. (Text continued on p. 27.) - 24 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 7 Production of Cement and Number of Cement Plants in the USSR Selected Years, 1940-60 Year Total Production (Thousand Metric Tons) Average Production per Plant (Thousand Metric Tonsl Number of Plants Index of the Average Production per Plant (1950 = 100) Index of the Number of Plants (1950 = 100) 1940 5,675 2/ 126 2/ 45 77 73 1950 10,194 2/ 164 2/ 62 loo loo 1955 22,484 2/ 304 74 4/ 185 119 1956 24,861 2/ 331 75 2/ 202 121 1957 28,900 2/ 366 79 2/ 223 127 1958 Plan 33,900 2/ 413 82 4/ 252 132 1960 Plan 52,000 2/ 578 90 1/ 352 145 a. See Table 2, p. 8, above. b. 1/41/ c. 142/. The figure for 1957 is given. d. 1_1/. See IV, A, p. .9, above and IV, B, p. 13, above. e. Revised plan. (The original goal was 55 million tons.) See Table 2, footnote i, p. 8, above. f. ILI/. Planned new plants (16) added to the number of plants in 1955. The original plan called for the addition of 27 new plants for a total of 102 plants by the end of 1960. 145/ -25- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 8 Capacity and Production of Clinker in Rotary Cement Kilns in the USSR Lti 1940 and 1950-55 Average Annual Average Annual Capacity per Kiln 12/ Utilization Rate per Kiln Average Annual Clinker Production per Kiln Year Amount (Thousand Metric Tons) Index (1950 = 100) Percent Index (1950 = Amount 100) (Thousand Metric Tons) Index (1950 = 100) 1940 63.6 87 51 68 32.4 59 1950 73.4 loo 75 100 55.0 100 1951 79.2 108 77 103 61.0 111 1952 83.2 113 79 105 65.7 119 1953 91.4 125 80 107 731 133 1954 97.9 133 82 109 80.y 146 1955 101.2 138 85 113 _ 86.o si 156 a. 146/. For plants which were controlled by the Ministry of the Construction Materials Industry of the USSR. This included 90 percent of the cement plants in the USSR in 1955. b. Capacity based on hourly production, assuming a 24-hour day and a 340-day year. c. 147/. In 1955 the production cost of 1 ton of clinker averaged 94.54 rubles and in 1956, 95.88 /nines. -26- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T The cement industry has been increasing the production per kiln by installing larger kilns and has been gradually increasing the number of kilns per plant -- that is, building larger plants -- as indicated in Table 9.* These trends are expected to continue. In 1955 the average annual capacity per plant was 350,000 tons, but in the next 15 years the cement industry hopes to build Many of its plants with annual capacities, of from 600,000 to 1.8 million tons. In certain areas where consumPtion is limited, small plants of 100,000 to 200,000 tons of annual capacity will be constructed. 148/ It was determined in 1955 that the higher the annual capacity of a new plant and its kilns, the lower were the required capital expenditures per ton of capacity. This is demon- strated in Table 10.** In 1957 it was ascertained that the cost per ton of cement was closely correlated with the capacity of the plant -- that is, the larger the plant, the lower the cost per ton. At the largest plants, 1 ton of cement cost 90 rubles, and at small plants, costs ran as high as 165 rubles per ton. 149/ By 1960, plants with kilns as large as 4.5 by 170 meters (m) will be constructed, for which capital expenditures per ton of cement out- put are expected to be even lower.*** 152/ The specifications of existing and planned large plants with 3 kilns measuring 4 by 150 m or 4.5 by 170 mxxxx are given in Table 11.t Thus the cement industry hopes to increase considerably the average annual capacities of old plants and to build new plants of higher capacities incorporating larger kilns, which will increase considerably the total capacity of the cement industry at a decreas- ing cost per ton of output. In 1951-57, however, the actual costs frequently exceeded the planned costs. For example, in the RSFSR during 1951-57 the capital investment per ton of capacity at new cement plants averaged 402 rubles (including housing), when accord- ing to plan.it should have been about 300 rubles.1.511/ This suggeststt * Table 9 follows on p. 28. ** Table 10 follows on p. 29. *** A kiln of this size is a wet-process kiln. As of 1 January 1957, 92 percent of total production was by wet process. Two articles in Soviet periodicals have discussed the advantages of using dry- process kilns, which are shorter, less expensive, and consume less fuel per ton of clinker produced. 152/ It was stated that in the future, 28 percent of new plants should be dry process and 72 per- cent should be wet process. ajli **** None of these kilns is believed to be in operation yet. a kiln 5 in by 185 m with a daily production of 1,800 tons of clinker has been developed. 15.3/ t Table 11 follows on p. 30. tt Continued on p. 30. -27- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 rnc1 50X1 S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Table 9 Relationship of the Estimated Number of Rotary Cement Kilns to Total Production and Number of Plants in the USSR Selected Years, 1949-65 Kilns Average Production of Cement per Kiln Average Number of Index Amount 2/ Index Year Number (1949 = 100) (Thousand Metric Tons) (1949 = 100) Kilns per Plant 12/ 1949 150 2/ 100 54 100 2.5 1955 200 1/ 133 112 207 2.7 1956 209 2/ 139. 119 220 2.8 1957 223 1/ 149 130 241 2.8 1965 317 e 211 240 444 N.A. a. Production figures divided by number of kilns (see Table 7, p. 25, above, for 1949-57 production and VI, p. 16, above, for 1956 production). b. Number of kilns divided by number of plants (see Table 7). c. Derived from the number of kilns in 1957 (73 new rotary kilns were introduced at new and existing plants during 1950-57). 122/ d. Production of cement is computed to be 1.31 times production of clinker (with a range of error of plus or minus 5 percent). 156/ This figure was multiplied by the average production of clinker per kiln in 1955 (see Table 8, p. 26, above), and the product was divided into production of cement for 1955 (see Table 7, p. 25, above) to compute the number of kilns. e. Nine new kilns were added in 1956. 157/ f. Seven new kilns were added at existing plants, and 7 kilns are estimated to have been added at the 4 new plants completed during the year (see IV, B, p. 13, above). g. A total of 94 new kilns will be required during 1958-65 to obtain the necessary increase in production. 12ES -28- S-E-C-R-E-T Declassified in Part- Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 10 Capital Expenditures in Relation to the Capacities of Cement Plants and Kilns in the USSR LI 1955 Capital Expenditures Index of Decrease Annual Plant Capacity Amount of Rubles per Ton Number Size of Kilns (Thousand Metric Tons) (Rubles per Ton) (First Row = 100) of Kilns (Meters) 60 700 loo 1 2.5 by 62 135 650 93 2 2.5 by 75 230 500 71 2 3 by 127 330 400 57 3 3 by 127 ? 450 286 41 2 3.6 by 150 680 240 34 3 3.6 by 150 900 220 31 2 4 by 135 a. 159/. Cement plants include quarries. - 29 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T the difficulty being encountered by the cement industry in lowering costs while at the same time expanding capacity. Table 11 Specifications of Large Cement Plants in the USSR 2/ 1956. and 1960 Plan Characteristics 1956 1960 Plan Annual capacity (thousand metric tons) 660 1,400 Volume of buildings (cubic meters per metric ton of cement) Investment (current rubles per metric . 1.0 o.48 ton of cement) .260 162 Standard fuel consumption 121 (kilograms ? per metric ton of cement) 1 230 193 Annual output of cement (metric tons per worker) 1,400, 2,400 Cost of production (current rubles per . metric ton of cement) ' 90 57 a. 160/. Plants having 3 kilns in 1956. b. Standard fuel yields 7,000 calories per gram. IX. Regional Distribution of Production and Consumption. A. Factors in the Location of Cement Plants. The cement industry is a raw-material-oriented industry be- cause cement is a low-cost commodity in relation to bulk, and the weight of the raw materials in the Soviet cement industry is esti- mated to exceed the weight of the finished product (cement) by 6o percent.* The basic raw material, limestone, is computed in the US to account for five-sixths of the total weight of raw material inputs used in the manufacture of cement.** .2;1/ Limestone is abundant throughout most of the USSR, 162/ and economical plant operation requires a good quality of limestone which is easily * See VII, A, p. 17, above. The weight loss occurs in the burn- ing process in the kilns. ** A somewhat lower proportion of limestone is used in the USSR because of the greater use of slag (see VII, A, p. 17, above). -30- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T accessible, so that quarrying and transportation costs may be kept to a minimum.* There are definite advantages to locating plants where large- scale production can be maintained because large plants can produce cement at lower cost as a result of lower fixed costs per unit of output and greater output per worker.** The scale of production should be limited, however, because the area of distribution of cement should be limited. This restriction is imposed primarily because cement is a semiperishable commodity which must be kept dry at all times and which may even deteriorate over ea period of time from atmospheric moisture. Excessivc transportation and storage time frequently results in deterioration in quality and may even render the cement useless.*** Thus the problems to be considered in the location of new cement-producing facilities include not only the optimum size of the plant near readily accessible limestone deposits of suitable composition (or slag) but also the location of present and future consuming areas. B. Regional Distribution Through 1955. Since 1946 the geographic distribution of production of cement (which had formerly been concentrated in only a few regions'of.the USSR) has been improved somewhat, but the construction of cement plants in the Eastern Regions has continued to lag. 163/ Neverthe- less) during 1950-55, production of cement in the Eastern Regions increased by 139 percent compared with an increase of 121 percent for the whole country, but the deficit between production and con- sumption in the Eastern Regions increased from 910,000 tons in 1950 to 1 million tons in 1955. In Kazakhstan and Central Asia (Region X), the deficit increased from 420,000 tons in 1950 to 800,000 tons in 1955. This deficit as well as those of the other economic regions in the Eastern Regions was partially offset in 1955 by the large upsurge of production in the Urals (Region VIII), which raised production for that region from a deficit of 530,000 tons in 1950 to a surplus of 360,000 tons in 1955 by increasing production from less than 1 million to almost 3 million tons (see Table 12*xxx). * limestone quarries are almost always a part of the cement plant installation. ** See Tables 10, 11, and 20, on pp. 29, 30, and 61, respectively. *** A considerable loss occurs in the USSR in the shipment of bulk cement by rail, which is the primary means of shipment (see IX, C, p. 33, below). **** Table 12 follows on p. 32. - 31 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 12 Interrelationships Between Regional Production and Consumption of Cement in the USSR 21 . 1950 and 1954-56 Thousand Metric Tons I Economic Region 1950 Production in , Relation to Production Consumption 2/ Consumption Production 2/ la Northwest 230 4/ 630 Ib North Negligible 2/ 120 ha and ITh West 650 f/ 500 III South 2,010 fi 2,380 IV North Caucasus (Southeast) 1,000 4/ 800 V Transcaucasus 550 ri 870 VI Volga 930 4/ 530 VII Central 2,210 di 2,350 VIII Urals 920 Ey 1,450 31( West Siberia 570 g 560 Xa and Xb Kazaldmtan and Central Asia 400 f/ 820 XI East Siberia 250 2/ 340 XI/ Far East 480 di 360 Total USSR g/ 10,190 fi /1,7002! VIII-XII Eastern Regions 2,620 3,530 -400 700 -120 6o +150 1,060 -37o 3,930 +200 1,710 -320 1,010 +400 1,540 -140 3,930 -53o 2,360 +10 760 -420 850 -W 510 +120 570 -1,510 !I.2 LI -910 5,050 1954 1955 1956 Production in Production in _, Relation to 1 Relation to Consumption 2/ Consumption Production ConsumptiOn. 121 Consumption Production 1,020 2i -320 810 di 1,130 -320 850 di 200 -140 6o 4/ 210 -150 70 2/ 960 2/ +100 1,230 fi 1,090 +140 1,250 fi 3,770 +160 4,6212 f/ 4,250 +370 4,960 1/ 1,000 +710 1,960 4/ 1,110 +850 1,970 4/ 980 +30 1,120 fi 1,020 +100 1,560 li 1,760 -220 1,890 li 2,360 -470 2,120 di 4,040 -ilo 4,550 4/ 4,68o -130 4,930 4/ 2,180 +230 2,830 4/ 2,470 +360 3,230 4/ 1,110 -350 1,190 4/ 1,430 -240 1,360 4/ 1,210 -360 920 1/ 1,720 -800 1,120 21 68o -170 650 4/ 880 -230 720 4/ 68o -no 6702! 760 -90 730 2/ 19,520 2/ -530 22,480 li 23,110 -630 24,860 I/ 5,810 -760 6,260 7,260 -1.000 7,160 a. All data are significant to the nearest 10,000 tons. b. 164/. Given in percentages. C. 1/. Given in percentages. d. 3M/ e. Karel'skaya ASSR is included in Region II rather than Region Ia. f. Aggregated from figures for union republics. 167/ g. Totals are derived independently from unrounded data and may not agree with the sums of their rounded components. h. Estimated on the basis of estimated net imports in 1950. See X, P. 37, below. - i. Consumption is estimated to have exceeded production by the same percentage (2.8 percent) as in 1955. j. - 32 - S-E-C-R-E-T Declassified in Part- Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T ? From 1954 to 1955 in the Eastern Regions the deficit in pro- duction increased from 760,000 tons to 1 million tons (see Table 12). By 1955 the Eastern Regions consumed 31.4 percent of all available cement in the USSR and produced only 27.8 percent compared with 1950, when 30.2 percent of the total was consumed and 25.7 percent was pro- duced (see Table 13* and the map, Figure 3**). In the Western Regions the most notable changes during 1950-55 occurred in the Volga Region (Region VI), where a-400,000-ton produc- tion surplus in 1950 changed to a 470,000-ton deficit in 1955, and the South (Region III), which changed from a 370,000-ton deficit in production to a 370,000-ton surplus. Also during this period the surplus in production in the North Caucasus (Region IV) was increased from 200,000 tons to 850,000 tons, and in the Northwest (Region Ia) the deficit in production was slightly decreased from 400,000 tons In 1950 to 320,000 tons in 1955 (see Table 12***). For the USSR as a whole, consumption exceeded production in 1950 by an amount estimated to be 1.5 million tons, in 1954 by an amount estimated to be 530,000 tons, and In 1955 by 630,000 tons (see Table 12). Stocks are believed to have remained relatively con- stant, so that these deficits must have been .made up by net imports. C. Problem of Tranuortation. ? The average length of haul of cement in the USSR has decreased considerably over the last 15 years, In 1940, cement was hauled at., average of 1,001 kilometers (inn); in 1950, 803 km; in 1954, 665 km; and in 1955, 640 km. 1/2/ During the Fifth Five Year Plan (1951-55) the 20-percent decrease in the average length of haul resulted in a saving of approximately 115 million rubles. El/ A continued de- crease in the average length of haul, however, will be hindered by the planned increases in the average size of plants,**** as the-larger plants tend to ship their production greater distances For example, in 1955 at 52 plants which shipped less than 500,000 tons, of cement, the average radius of shipment was 391 km; at 9 plants which shipped between 500,000 and 1 million tons, the average radius of shipment was 526 km; and at 4 combines, each shipping more than 1 Million tons, the average radius of shipment was 849 km. This latter group aCcounted for 26 percent of all the cement produced. 112/ Table 13 follows on p. 34. Following p. 34. P. 32, above. See Table 7, p. 25, above. - 33 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 13 Regional Production and Consumption of Cement in the USSR Selected Years) 1950-60 ' Percent of Total Economic Region 1950 1954 2J 1955 1956 1960 (Plan) Production 2/ Consumption 2/ Production Consumption Production IV Consumption 2/ Production 2/ Consumption 2/2/ Ia Northwest 2.3 5.4 3.7 5.22/ 3.6 4.9 3.4 3.8 Ib North 0' 1.0 0.3 1.0 0.3 0.9 0.3 1.8 ha and In West 6.4 4.3 5.6 ?9W 5.5 4.7 5.0 3.1 III South 19.7 20.3 20.7 19.3 20.6 18.4 20.0 15.1 IV North Caucasus (Southeast) 9.8 6.8 9.0 5.1 8.7 4.8 7.9 4.3 V Transcaucasus 5.4 7.4 5.3 5.0 5.0 4.4 6.3 3.9 VI Volga 9.1 4.5 8.1 9.0 8.4 10.2 8.5 8.4 VII Central 21.7 20.1 20.7 20.7 20.2 20.3 19.8 17.1 VIII Urals 9.0 12.4 12.4 .10.9 12.6 10.7 13.0 13.3 IX West Siberia 5.6 4.8 4.o 5.7 5.3 6.2 5.5 8.7 Ia and Xb Kazakhstan and Central Asia 3.9 7.0 4.5 6.2 4.1 7.4 4.5 10.2 XI East Siberia' 2.5 2.9 2.7 3.5 2.9 3.8 2.9 7.0 XII Far East 4.7 3.1 3.0 3.5 3.0 3.3 2.9 3.3 Total USSR 1/ 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 VIII-XII Eastern Regions 25.7 30.2 26.6 29.8 27.8 Si 31.4 28.8 42.5 a' 112/ b. Percentages are derived from Table 12, p. 32, above. a' d. This plan was formulated when the production plan for 1960 was 55 million tons. It is not known how the 3-million-ton reduction in the new plan for 1960 is to be allocated among the regions. Because of the large increases originally planned for the Eastera Regions, however, it is probable that the major portion of the cut will be in these regions; e. Karel'skaya ASSR is included in Region II rather than Region Ia. f. Totals are derived from unrounded data and may not agree with the sum of their rounded components. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Production and. Consumption of Cement in the USSR, by Economic Region, 1955 Boundaries are not n essorily those recognized by the U . Government. ? 100,000 tons Produced 0 /00,000 tons Consumed TOTAL PRODUCTION AND CONSUMPTION Regions 1-7 Regions 8-12 MEREJEKTICREER*14100 a n JIR.IaFD nEEENVoilliel * Cl*IgJo ECE1********IKER 0**01*EIWKCEICIONGENER **0***IfINEWIENEENEW1i 1:1** et_INNWREINERia CAEN NEEKEWNEIENNEE*11111** NEENINCIEWK*EREEELTIA ENNEON, ? ? ? ENEIENEE REENIEGIE *IKIINENIE ENEWEIN WWWWWWIN MINE*RE 01:11**NO0 ODOECOO 25968 6-57 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 50X1 Figure 3 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T In 1956, 17.7 percent of the cement produced in the USSR was still being shipped more than 1,000 km.* These long hauls consumed 57 percent of the total transportation facilities used by the cement industry. Nine of the 13 economic regions were considered to have unduly high average lengths of haul, as shown in the following tabula- tion 176/: Economic Region Average Length of Haul (Kilometers) XI East Siberia 1,228 X Kazakhstan and Central Asia 1,047 Ib North 905 XII Far East 873 VI Volga 762 Ia Northwest 510 IX West Siberia 503 VII Central 485 VIII Urals 478 A major problem in decreasing the average length of haul is crosshauling. For example, in 1955 the Urals Region sent out more than 700,000 tons of cement and received approximately 400,000 tons, and Kazakhstan sent out up to 4o percent of the cement produced and received more than 70,000 tons from other regions of the country. 122/ Crosshauling is caused by an incorrect geographical distribution of production of the various types and grades of cement, 178/ poor co- ordination and planning, and faulty estimation of requirements. Poor distribution of production of the various types of cement alone in- creases transportation costs by about 50 million rubles per year. 179/ For instance, in the first half of 1954 the Ministry of Transporta- tion (Railroads) reported that shortages of the various types and grades of cement in the different regions resulted in a 45-km increase in the average length of haul. 180/ The administrative reorganiza- tion, however, should facilitate a decrease in crosshauling.** The railroads bear about 8o percent of the burden of shipping cement in the USSR, in spite of attempts to increase the proportion carried by water transport.*** 182/ Aside from the burden on the railroads, excessive shipment, particularly of bulk cement, results the construction of small plants in re- 50X1 glans more than 1,000 km from a cement plant was economically justi- fiable. 175/ ** See V, p. 14, above. *** Although most of the water transport of cement is on rivers, some shipments are made by sea from the Black Sea area to the Far East. 181/ - 35 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T in considerable losses because of poor handling, storage, and ship- ping practices. In 1955, 80.4 percent of the cement was shipped in bulk and 19.6 percent in bags, and in 1956, 84.4 percent was shipped in bulk and 15.6 percent in bags.* In bulk shipment, 16 to 18 per- cent of the cement reportedly is lost (including construction site losses). in 1960, 8 million to 9 million tons of cement will be lost, valued at 1 billion rubles. 183/ This very high loss ratio indicates that little cement is shipped in sealed hopper cars. Substantial improvement will be impossible without the almost exclusive use of these cars for bulk shipments. D. Regional Distribution, 1956-60. According to the original Sixth Five Year Plan (1956-60), consumption of cement in the Eastern Regions of the USSR was to in- crease from 31.4 percent of the total in 1955 to 42.5 percent in 1960. Four of the five Eastern Regions were to increase their share of the total, with only the Far East remaining constant through 1960. The only other region which was to increase its share of the total consumption by 1960 was the North (Region Ib), which was to go from 0.9 percent in 1955 to 1.8 percent in 1960.** To increase regional self-sufficiency, the original Sixth Five Year Plan called for the construction of 17 new plants*** in the Eastern Regions out of a total of 27 for the whole USSR. 187/ Although complete regional self-sufficiency was not expected by 1960, a much greater degree was to be attained than there was in 1955.. For example, in 1955, Region X (Kazakhstan and Central Asia) consumed 7.4 percent and produced 4.1 percent of total production of cement in the USSR, but in 1960 the region was to consume 10.2 percent** and to produce 9.8 percent of the total.**** 50X1 * In the US, masonry cement is shipped in bags, and nearly all of the other cements are shipped in bulk. Bulk shipment is cheaper and easier to handle, but handling equipment is necessary and the cement must be stored more carefully. ** See Table 13, p. 34, above. *** One of these plants was to obtain the raw materials as a by- product of a relatively new process by which alumina will be extracted from nepheline cyenite. The process yields a considerable slag, which is a semiprocessed material for the production of cement. 184/ In October 1956, plans were completed for the construction of the Achinsk Cement Plant in Krasnoyarskiy Kray in East Siberia. This plant is to have several kilns, each with a capacity of 60 tons an hour, and is to adjoin the alumina plant, 185/ which originally was scheduled to be completed by 1959. 186/ The cement plant will probably be capable of producing a large amount of cement shortly after the completion of the alumina plant. **** Derived from Appendix A, Table 22, p. 63, below. Region X in- cludes Uzbek, Kazakh, Tadzhik, Turkmen, and Kirgiz SSR's. - 36 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 :CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T The revised plan for construction of new plants stipulates that 16 new cement plants will be constructed, mainly in the Eastern Regions,1,p12,/ so that the new plan for the whole country calls for 1 plant less than was originally scheduled to be constructed in the Eastern Regions alone.* In addition, 4 of the 8 plants already com- pleted or to be completed by the end of 1958 have been in the Western Regions.** Thus there has been a minimum reduction of almost 30 per- cent in the original plan for the completion of the number of new plants in the Eastern Regions, so that the gap between production and consumption in those areas probably will still be considerable in 1960, although some improvement may be expected. X. Pattern of Trade Since 1948. A. Exports Within the Sino-Soviet Bloc. Albania is the only Sino-Soviet Bloc country which appears to receive cement from the USSR on a continuing, although Very limited, basis. In the last 2 months of 1953, 2 small shipments totaling 4,530 tons were noted. In 1954, 1 shipment of 2,838 tons was reported and in 1955,, 3 shipments totaling 11,500 tons. 190/ In addition to these limited shipments, the USSR exports token relief shipments. In 1954, 1,000 tons of cement were sent to North Korea 1921; in 1955, 7,983 tons were sent to North Vietnam 192/; and in November 1956, 10,000 tons were sent as a gift to Hungary. 121/ In 1957, cement was exported to Mongolia and again to North Korea. 194/ B. Exports Outside the Sino-Soviet Bloc. Soviet exports of cement outside the Sino-Soviet Bloc have generally been limited and have gone to underdeveloped countries, probably as a part of the economic penetration effort. Exports of cement to Southeast Asia and the Near East totaled 156,000 tons in 1955 and 164,000 tons in 1956. 195/ These figures are believed to include almost all of the cement exported to Free World countries, as Iceland is the only country outside these areas believed to be receiving a significant quantity of cement from the USSR. The countries to which the USSR has been exporting cement are listed below, along with the years in which exports were believed to have been made and the quantities, when available.*** * See V, p. 14, above. ** See IV, p. 9, above. *** The USSR and the European Satellites have an agreement under which intra-Bloc price competition in cement exports is minimized. -37- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: ICIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 .S-E-C-R-E-T 1. Afghanistan. Small shipments of cement were made by the USSR in 1955 and 1956. 2E/ 2. Burma. In 1954, 2,181 tons of cement were exported. 198/ In 1956 an uninformed Burmese trade mission contracted for the im- portation of a total of 128,000 tons from the Bloc, of which the USSR was to supply 48,000 tons. This is far in excess of Burmese , needs. .The arrival of the cement in Rangoon choked that port, and much of the cement was reportedly ruined. 199/ However, as late as January 1958 a shipment from the USSR of 8,675 tons was noted. 200/ 3. Ceylon. A trade agreement was planned under which Ceylon was to import Soviet cement in 1956. 201/ U. Egypt. In 1956, 50,000 tons of cement were to be shipped, 202/ and some shipments were noted in that year. 203/ Shipments continued in 1957. 204/ 5. Ethiopia. In 1957 the USSR was to ship 4,700 tons of cement. E22/ 6. French Somaliland. A shipment of 4,470 tons of cement was noted in 1957. 206/ 7. Iceland. Imports in 1953 totaled 3,797 tons of cement 207/.; in 1954, 50,957 tons 208/; in 1955, 36,000 (estimated) tons 222/; and during 1956-59 the USSR planned to send 50,000 tons a year. 210/ 8. India. In 1956 the USSR reportedly agreed to supply 120,000 tons of cement to India,* 211/ and shipments of approximately 50,000 tons were noted in the latter half of 1957. Eli/ * Probably little of the cement was shipped during 1956. - 38 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T 9. Indonesia. cement from the in which one of cement. 214/ 10. In 1955, Indonesia planned to import 15,000 tons of USSR, 213/ and in 1956 a trade agreement.was signed the commodities to be exported by the USSR was Iran. Soviet exports of cement to Iran during 1950-56 were as follows 215/: ? Metric Tons Year* 1950 24,016 1951 8,410 1952 2,937 1953 15,952 1954 24,897** 1955 N.A. 1956 10,000*** U. 12. 13. Lebanon. In 1956) small shipments of cement were noted. 216/ Pakistan. Shipments of cement were noted during December'1955. Ell/ Saudi Arabia. A shipment of 3,850 tons of August 1957. 218/ 14. Turkey. cement was reported in It is estimated that in 1953, 22,000 tons of cement were received from the USSR 219/ and in 1955, 62,000 tons. 220/ In 1956, imports from the USSR continued. 221/ * The Iranian calendar year begins in the latter half of March. ** March through August. *** March to mid-June. -39- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T 15. Yemen. This country imported 3)000 tons of cement from the USSR in 1956.'222/ Soviet exports of cement to underdeveloped countries will probably increase, but they are not expected to account for a sig- nificant percent of domestic production by 1960. During 1956-60 the USSR expects to increase the shipment of cement from Novorossiysk by 66 percent compared with 1955. 222/ Novorossiysk is a large cement-producing area and the port of departure for nearly all sea- borne exports of cement. C. Imports. It is apparent that the USSR has been.continuously importing significant quantities of cement from the European Satellites, at least since 1950 when imports reached nearly 1 million tons from 4 of these Satellites (see Table 14). Table 14 Estimated Soviet Imports of Cement from Four European Satellites 1950-52 Metric Tons Country 1950 1951 1952 East Germany 195,000 2/ 140,000 349,300 12/ Hungary c 6o,000 N.A. N.A. Poland d 270,000 285,000 320,000 Rumania-2/ 421,700 r. 340,000 N.A. Total 9U6,700 765,000 - 669,300 a. 224/ c. 226/. Estimated on the basis of shipments during 1 month. d. 227/. The 1952 figure.is a planned amount. e. 228/. Including cement shipped under trade agreements and reparations. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T In 1956, almost all of a total of approximately 2 million tons imported into the USSR is estimated to have come from Communist China and 4 of the European Satellites (see Table 15). In addition to these shipments, a large amount of cement was sent to the USSR by Bulgaria in 1950, and some was also sent in. 1951. 229/ East German shipments to the USSR were noted in 1954 and 1956,22/ and Rumanian shipments to the USSR were noted in 1954 and 1955 2i7; so it is probable that exports from these countries to the USSR continued in the intervening years. Polish exports in 1953-55 have been substantial, totaling 403,400 tons in 1953, 151,500 in 1954, and 69,000 in 1955. 232/ Table 15 Total Imports of Cement into the USSR 1956 Exporting Country Amount (Thousand Metric Tons) Percent of Total Communist China 780 h/ 39 Rumania 5oo 2/ 25 Poland 3232] 16 Bulgaria 143 2j 7 East Germany) Hungary 174 a/ 9 Yugoslavia s/ 4 Total 2,000 hi 100.0 a. All figures other than those for Poland and Bulgaria are approximate. b. De 4. The balance of 174,000 tons may be divided between East Germany and Hungary. Imports from other countries are be- lieved to be negligible. e. 235/ Communist China has been the largest exporter of cement to the USSR, and exports have been increasing since 1954 (see Table 16*). * Table 16 follows on p. 42. -41- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T The Free World countries from which the USSR receives rela- tively small quantities of cement include Finland (7,612 tons in 1954 and 11,668 tons in 1955) 236/; Yugoslavia (80,000 tons in 1955 and again in 1956, a minimum of 23,000 tons shipped during 5 months of 1957, 237/ and a planned amount of 100,000 tons in 1958); and possibly Portugal (an undisclosed amount in 1953). 238/ Table 16 Estimated Exports of Cement from Communist China to the USSR 1953-56 Thousand Metric Tons Year Total Exports 2/ Estimated Exports to the USSR 1953 350 290 12/ 1954 330 270 12/ 1955 420 340 y 1956. 950 780 c/ a. 239/ b. In 1956, exports to the USSR comprised 82 percent of total exports. The same percentage of total exports was assumed for the other years. c. 240/ The USSR is estimated to have consumed 1.5 million tons of cement in excess of domestic production in 1950, 530,000 tons in excess in 19545 and 630,000 tons in excess in 1955.* This amount is approximately equivalent to net imports because cement is a semi- perishable commodity which cannot be stored for long periods of - time, so that inventories may be assumed to be relatively constant. In 1956, net imports were probably more than 1.5 million tons. The USSR therefore has been a net importer of cement for some years, and there is no available evidence to indicate that this situa- tion will change in the next several years. On the contrary, the high and probably unattainable rate of production and consumption which has been planned for the future suggests that the net importa- tion of cement will increase. .Almost all of the Soviet cement im- ports come from Poland, Rumania, East Germany, Communist China, and * See Table 12, p. 32, above. -42- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Bulgaria. There is no available evidence which suggests that im- ports from any of these countries will decrease,* and, because of supply deficits in the regions of the USSR contiguous to Communist China,** imports from that country will probably increase, XI. Quality and Types of Cement. The quality of cement is designated in the USSR by a "mark," or grade number. This number refers to the minimum compressive strength (Measured in kilograms per square centimeter) of a standard com- pressed mixture of 1 part of the cement to 3 parts of sand (to which water is added) after this mixture has hardened under given constant conditions for 28 days.*** 2142/ Thus a mark or grade of 400 for a batch of cement indicates that the compressive strength of a standard sample containing this cement was not less than 400 kg per square centimeter after 28 days. The quality (grade) of the cement produced is very important because the quantity of cement required to make concrete of a given strength varies with the quality used -- that is, the effectiveness of the cement varies with the quality. Table 17 indicates the relationship, between the quality of the cement and the quantity required. Table 17 Quantity of Cement Required for Production of Standard Concrete 9.1 in the USSR, by Grade . 1955 Quantity Index. Grade (Kilograms per Cubic Meter) (400 Grade = 100) 200 416 158 300 . 320 121 400 264 loo 500 227 .86 a.gill/. This is the most common grade of concrete (as of 1955), having a compressive strength of 150 kg per square centimeter under given constant conditions. * With the exception of Poland. gill ** See Table 12, p. 32, above. *** Each grade also has minimum tensile strength standards. -43- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Thus increasing the average grade of cement produced from 40o to 500 will increase the effectiveness of the cement by 14 percent. Conversely, lowering the average grade of cement produced from 400 to 300 will decrease its effectiveness by 21 percent. In the USSR the average grade of cement has increased as shown in Table 18. Table 18 Average Grade and Effectiveness of Basic Types of Cement in Construction in the USSR Selected Years, 1940-57 Average Grade Index of the Effectiveness of Cement in Construction (1950 = 100) Excluding Including Excluding Year Masonry Cement Masonry Cement Masonry Cement 1940 ES 1950 12/ 1951 12/ 1952 12/ 1953 12/ 1954 -1)./ 1955 12/ N.A. 356 382 385 391 390 393 322 353 382 385 391 390 382 N.A. 100.0 104.9 105.4 106.5 106.3 107.0 1957 2/ N.A. 403 N.A. Including Masonry Cement N.A. 100.0 105.4 106.0 107.1 107.0 105.5 N.A. a. 244/ b./. All figures (including index figures) are reported. 41 c. 2 /. Probably including masonry cement, although no specifica- tions are given. The increase in the average quality of ceinent during the Fifth Five Year Plan (1951-55) increased the effectiveness for the end user by 7 percent.* The plan for increasing the quality of cement during the Fifth Five Year Plan was not fulfilled, however. An expected 13.5-percent increase 247/ materialized into only an 8.2- percent increase.** * Excluding masonry cement. ** Including masonry cement. See Table 18. - 44 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T In 1956, "for the first time in a number of years, the cement Industry considerably reduced the average quality of cement." 248/ The seriousness of this situation for the construction program in the USSR is evident from the discussion above. In addition, it indicates the difficulties which the Soviet cement industry was having in 1956 in attempting to fulfill its quantity production goals. Cement plants can increase the quantity of cement produced by the simple expedient of lowering the quality. /n 1957 the in- dustry regained quality control.. Thus, in the production of cement, increasing the quantity of production may have the effect of lowering the quality, which would require the end users to consume a greater quantity of cement to perform the same tasks. A determination of the average quality of the cement produced is therefore an important factor in analyzing the sufficiency of production for the needs of the economy. In the USSR the increasing use of precast and prestressed rein- forced concrete imposes a need for more production of rapid-hardening cement* and the higher grades of cement. 249/ During the Sixth Five Year Plan (1956-60), production of precast concrete is to increase 5.8 times to 28 million cu m, and production of prestressed concrete is to increase almost 50 times, to 7 million cu m. 222/ Although these plans will probably not be fulfilled, the demand for higher grades and for rapid-hardening cement will increase considerably.** High-grade cement is needed because of the required high quality of precast and particularly of prestressed concrete,*** both of which are used as substitutes for structural steel. The use of rapid- hardening cement permits a considerably higher output from any given precast or prestressed concrete plant because the forms may be stripped after a considerably shorter period of time (usually 24 hours) than would be possible if ordinary portland cement were used, as concrete containing rapid-hardening cement attains a'higher de- gree of strength in a relatively short period of time than does con- crete containing ordinary portland cement. * In the US the comparable type of cement is called high early strength cement. ** The production of rapid-hardening cement was planned to be 2 mil- lion tons in 1957. DI/ *** Prestressed concrete is similar to precast reinforced concrete except that the reinforcing steel is pretensioned until the concrete has hardened. It then has considerably higher strength than regular reinforced concrete. -45- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Portland and portland slag, the basic types of cement, comprise most of the cement produced in the USSR. From 1950 to 1955 the former generally accounted for about 50 percent of the total amount of cement produced, and the latter accounted for 30 to 35 percent and appeared to be increasing slightly during the period.* ?The several qualities and special types** make cement a nonhomogeneous product and cause crosshauling.*** XII. Prices. The prices of the various grades and types of cement produced by plants formerly controlled by the central and republic governments of the USSR have been approved by the Council of Ministers 252/ and are believed to be generally sufficient to cover the cost of manu- facture. Since 1950 the price of grade 250 cement. has decreased. The following index constructed from the 1 July 1955 price as a base illustrates this decrease.**** 253/ Time Price Index (1 July 1955 = 100) 1 July 1950 138 1 January 1952 119 1 July 1955 100 ? The average wholesale price .of cement in 1950 was 107 rubles per ton, and in 1955, 113 rubles; thus in 1950 the total value of pro- duction was 1.1 billion rubles and it 1955, 2.5 billion rubles.t The average price varies between 1950 and 1955 because of the change in the regional production pattern, the grade, and the proportion of.the different types of cement produced.tt See Appendix A, Table 21,.p. 62, below. ? Rapid-hardening cement is the only type in which production is to be increased considerably. There are numerous other types of cement with special qualities, including sulfate-resisting, oil well) and air,-entrained cement (see I, p. 2, above). *** See IX, C, p. 33, above. ** Producer prices in Moscow Oblast, probably delivered, as of each year. t Price per ton multiplied by annual production from Table 2, p. 8, above. Ruble values are in 1 July 1955 prices, f.o.b. station of departure. tt Cement is priced by type (see Appendix A, Table 21, p. 62, be- low) and by grade (approximately grade 350 in 1950 and grade 400 in 1955 -- see Table 18, p. 44, above) gootnote continued on p. 4.17 -46- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T In 1951-52 the military establishments reportedly paid from 65 to 70 rubles per ton for cement (no grade or type specified), which was 41 to 44 percent of the price paid by industrial consumers. 255/ In the first quarter of 1956, Turkey paid an average of $21.12 per ton c.i.f. for 1,486 tons of cement (of unknown grade or type) im- ported from the USSR. 256/ Both of these prices appear to be low and suggest that in the field of defense and foreign trade, Prices are not determined on the basis of costs. The pricing of cement In foreign trade, is believed to be determined by bargaining between the USSR and the potential importer and by competition of the USSR with Free World exporters. The prices of cement sold at retail in the USSR are considerably higher than the other prices for cement. For example, during 1956 the American Embassy had to pay as high as 50 kopecks per kilogram for cement In March 1957, grade 250 cement was advertised for retail sale in Voroshilovgrad, in the Ukraine, at 300 rubles per ton. 257/ However, a relatively small percent of the cement produced in the USSR is sold at retail. The plan for the allocation of cement for the general market in 1958-60 is as fol:- lows 258/: Million Year Metric Tons 1958 2.7 1959 3.5 1960 5.0 for five different price zones. 254/ The distribution of production of cement by regions (see Table 13, p. 34, above) and the distribu- tion by republics (see Appendix A, Table 22, p. 63, below) were used to determine as closely as possible the percent of the total which was produced in each of the five price zones. The percent for each zone was multiplied by the price of the average grade (weighted by type) for each year, and the results were totaled. To get the un- delivered price, zone 1 prices were decreased by 16 rubles and prices In the other zones by 20 rubles each. These prices are therefore weighted by price zone and by type, and each should be a true average price for the average grade of cement produced in the USSR in 1950 and 1955. It was, .however, necessary to assume that the national average grade was produced in each price.zone and also that the na- tional complex of types was produced in each zone. - 47 - Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 50X1 50X1 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Thus if the plan were fulfilled, the retail market would increase its share of the total cement planned to be produced from 8 to 9.6 percent.* It is doubtful, however, that the plan for the release of cement to the general market will be fulfilled. * Total planned production is from Table 2, p. 8, above. -48- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T APPENDIX A STATISTICAL TABLES - 49 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R61141A001200130002-1 Table 19 Plan FUlfilIment and Estimated Production of Cement Plants in the USSR by Region and by Republic 2/* 1956 Location and Plant Name IV Plan Fulfillment 2/ (Percent) - Announced Production Above or Below Plan (Thousand Metric Tons) Total Production 2/ (Thousand Metric Tons) Ia (Northwest) 854 RSFSR 854 Leningrad (Vorovsk) 103.5 +9.1 sy Pikalevo 97.2 -8.1 f/ 281 2/ Volkhov . N.A. N.A. 304 12/1/ Karel'skaya ASSR lb. (North) RSFSR Arkhangel'sk 1/ Vorkuta 1/ N.A. N.A. N.A. N.A. 72. / 72 7 W 65 EL/ ha (Baltic) 709 Estonian SSR 107 KUnda (Punane-Kunda) 100.5 N.A. 107 2/ Latvian SSR 375 Riga 100.2 N.A. TEI1/ Saldus (Brotseni) 101.3 +2.9 2/ 226 2/ Lithuanian SSR 227 Alomyane 103.2 +7.0 (1/ 227 2/2/2/ * Footnotes for Table 19 follow on p. 56. -50- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Table 19 Plan Fulfillment and Estimated Production of Cement Plants in the USSR by Region and by Republic 2/ 1956 (Continued) Location and Plant Name 12/ Plan Fulfillment h/ (Percent) Announced Production Above or Below Plan (Thousand Metric Tons) Total Production 2/ (Thousand Metric Tons) lib (Belorussia) 539 Belorussian SSR 539 Krichev 97.9 N.A. 255 1/ Volkovysk 101.9 +5.3 1/ 284 2/ III (South) 4,961 Ukrainian SSR 4 961 Amvrosiyevka Combine (2 plants) gi 99.3 N.A. 2,300 E/ Dneprodzerzhinsk 104.4 N.A. 60 2/ Dnepropetrovsk (Petrovsk) Ii N.A. N.A. 115 I/ Khar'kov 101.2 +2.1 2/ 177 2/ Kiev 100.0 N.A. 300 2/ Kramatorsk 103.8 +16.6 1/ 453 2/ Krivoy Rog 100.2 N.A. 322 2/. Nikolayevsk 103.8 +17.0 2.11 464J Stalino (PUteprovod) 102.4 +2.1 g../ 90 W Yenakiyevo 97.0 -15.8 11/ 511 2/ Zdolbunov 102.8 +4.6 ci./ 169 2/ Moldavian SSR o - 51' - ' S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Table 19 Plan Fulfillment and Estimated Production of Cement Plants in the USSR by Region and by Republic 2/ 1956 (Continued) - Location and Plant Name 12/ Plan Fulfillment 2/ (Percent) Announced Production Above or Below Plan (Thousand Metric Tons) Total Production 2/ (Thousand Metric Tons) IV (Southeast) RSFSR Novorossiysk Combine (4 plants) 1.1/ V (Transcaucasus) Armenian SSR-210 Ararat (Armyanskiy rmenia27) Azerbaydzhan SSR Karadag Kirovabad Tauz Georgian SSR Kaspi (Gruzinskiy L-G-eorgia27, Stalin) Rustavi VI (Volga) RSFSR Sebryakovo Sengiley . Vol'sk Combine (4 plants) bb/ 95.3 90.7 105.4 66.3 102.2 95.2 59.5 . 101.6 97.8 96.7 N.A. N.A. +32.0 2/ N.A. N.A. -22.0 N.A. 412.1 2/ N.A. N.A. 1,968 1,968 1,968 1,555 210 2/ 672 1 n7 2/ 18 y/ 30 y/ 673 237 1A/ 2,115 2,115 768 2/ 70.,/ 1,277 i - 52 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 19 Plan Fulfillment and Estimated Production of Cement Plants in the USSR by Region and by Republic 2/ 1956 (Continued) Announced Production Plan Fulfillment hi Above or Below Plan Total Production 2/ Location and Plant Name bi (Percent) (Thousand Metric Tons) (Thousand Metric Tons) VII (Central) 4,926 RSFSR Belgorod 99.0 N.A. Bryansk 96.4 -43.2 yi Podgornoye (Kommunar) 99.3 N.A. Podol'sk 95.8 N.A. Ryazan' (Spartak, Mikhaylov) 104.9 +11.5 a/ Shchurovo 100.6 +2.3 2/ Tula (Soyuzshlak) 100.9 N.A. VoSkresenak 102.6 +6.9 a/ Vbskresensk (Gigant) 105.1 +42.0 a/ VIII (Urals) RSFSR Katav-Ivanovsk Magnitogorsk Neviyansk Nizhniy Tagil Nizhnyaya Salda Novo-Troitsk (Orsk) Pashiya 88.0 97.5 loom 76.0 103.0 63.8 95.5 -53- N.A. -22.6 y/ N.A. -100.0 +2.5 o N.A. N.A. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 4 926 700 !/ 1,157 e , 500 sil4/ 55ocy246 e 386 21 250 5/ 272 e 865 2/ 3,229 3,229 150 2_,/ 881 e 400 15/ 317 e 862! 350 22/ 170 22/ Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Table 19 Plan Fulfillment and Estimated Production of Cement Plants in the USSR - by Region and by Republic 2/ 1956 (Continued) Location and Plant Name 12/ Plan Fulfillment 12/ (Percent) Announced Production Above or Below Plan (Thousand Metric Tons) Total Production 2/ (Thousand Metric Tons) Pashiya (Novo-Pashiya) Sterlitamak Sukhoy Log IX (West Siberia) RSFSR, Iskitim (Chernorechensk) Kuznetsk (Stalinsk) Yashkin Xa (Kazakhstan) ,Kazakh SSR Karaganda Sas-Tyube Xb (Central Asia) Kirgiz SSR Kurmenti 76.8 86.7 102.0 89.2 100.4 97.0 72.1 88.0 N.A. N.A. N.A. N.A. i+2.0 2/ N.A. N.A. N.A. N.A. 248 ss/ 280 gi/ 347 e 1,362 1,362 523 !y502 e 337 if 555 555 525 3?!!1./ 567 8 ill/ -54- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 19 Plan Fulfillment and Estimated Production of Cement Plants in the USSR by Region and by Republic 2/ 1956 (Continued) 'location and Plant Name 121 Plan Fulfillment 2/ (Percent) Announced Production Above or Below Plan (Thousand Metric Tons) Total. Production 2/ (Thousand Metric Tons) Tadzhik SSR Stalinabad Turkmen SSR Bezmein Uzbek SSR Angren Begovat (Khilkovo) Kuvasay XI (East Siberia) RSFSR Noril'sk ELIV Krasnoyarsk Timlyuy XII (Far East) RSFSR Poronaysk (Yuzhno-Sakhalinsk) Spassk Teploye Ozero 100.0 105.1 100.6 88.1 100.7 N.A. 100.0 71;8 78.6 104.7 100.2 N.A. +3.1 1/ N.A. N.A. N.A. N.A. N.A. ? N.A. N.A. +23.8 (2/ N.A. 25 25 _111/ 63 471 161 i 250 12/ 722 722 50 22/ 403 22/ 269 22/ 727 727 531 151 1/ Total USSR - 55 - 214,861 S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 SE-C-R-E-T Table 19 Plan Fulfillment and Estimated Production of Cement Plants in the USSR by Region and by Republic 2./ 1956 (Continued) a. This list of 65, plants and 3 combines (containing a total of 10 plants) is believed to include all of the plants classified as cement producers by the Soviet government (see Table 7, P. 25, above). The output of these plants accounts for the total production of cement in the USSR in 1956. Although the regional press and radio refer to other cement plants, it is believed that these other plants are producing low- qualfty hydraulic binders (below grade 200 quality) which the central government does not classify as cement. The year 1956 is used because it is the only year for which reliable data are available on the produc- tion of individual plants. The production of 4o plants (more than half of the total number of plants), which accounted for 14.8 million tons (approximately 60 percent of the total production), has been deter- mined with a high degree of reliability. The production of these plants was determined on the basis of published figures on percentage fulfillment and tonnage fulfillment, or the production was taken to be the residual in a region or republic for which the production of the other plants had been determined by the ? former method. 50X1 d. 261/ e. Derived from the figures for this plant in the two preceding columns. f. 42/ g. 2 3/. This plant produces portland cement of high quality for reinforced concrete parts and industrial building sites. h. 264/. Cement is produced in conjunction with alumina. More than 300,000 tons of cement were produced in 1955. i. The residual.of production in the region.. - 56 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 19 Plan Fulfillment and Estimated Production of Cement Plants in the USSR by Region and by Republic 1956 (Continued) j. 265/. There is some doubt whether this plant is producing cement of sufficient quality to be considered one of the group of plants treated in this report. k. Estimated. Believed to be a very small plant. 1. 266/. Mentioned in a national plan fulfillment report. m. Estimated to account for most of the production in the region. n. This is the only cement plant in the republic. o. 267/ . p. The slight discrepancy between production in the republic and the calculation of plant production from the two preceding columns is believed to be a result of rounding. q. 268/. Two plants are listed Amvrosiyevka No. 1 and Novo-Amvrosiyevka. Although 4 50X1 plants were formerly listed at this location as being subordinate to the Ministry of the Construction Materials Industry of the USSR, it is believed that Plants 1, 2, and 3 have be'en-administratively consoli- dated into one plant and that Plant 4 is the new plant which was constructed during the Fifth Five Year Plan. There were also 3 lesser plants under local administration which are believed to be producing cement of too poor quality to be considered in the national total or to have been combined into one of the 2 plants listed above. 269/ r. About 250 railroad cars of cement were dispatched from this combine daily. Assuming 25 tons per car and 365 operating days per year yields a total annual shipment of 2.3 million tons, which is in the middle range of estimates for this figure. The upper range of the estimate is derived as follows: the combine produced nearly 10 percent of the total output of cement in the USSR in 1956 -- that is, nearly 2.5 million tons. The lower range of the estimate is derived as follows: by the end of the Sixth Five YearPlan (1960), out- put is planned to increase to 3 million tons per year, 270/ and this output is to be almost 1 million tons above that of 1956 271/ (more than 2 million tons). -57- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 19 Plan Fulfillment and Estimated Production of Cement Planta in the USSR by Region and by Republic 1956 (Continued) s. During the first 10 months of 1956, this plant produced 2,225 tons of cement above the plan. 272/ Assuming that the yearly overfUlfillment was the same amount, and using the percent of overfulfillment shown in the first column (104.4), the production would have been 53,000 tons. Assuming that the same rate of overfuifillment continued for the rest of the year, the production would have been 63,000 tons. The midpoint between these 2 estimates was rounded to the nearest 10,000 tons. t. In early 1957 it was stated that the plant turned out from 100,000 to 115,000 tons of portland slag cement per year. 273/ tons Of 622,000 u. the Kiev and Krivoy Rog plants appeared to be about equal in size. The residual 50X1 v' gni Proletariy. 50X1 w. 275/. Four plants are listed Oktyabr', Pervomayskiy, Pobeda Oktyabrya, and x. This is the only combine or group of plants in the region. y, The Tatz plant was mentioned as one of the two largest plants in the republic. 276/ With a residual of 48,000 tons of production in the republic and considering the low fulfillment of the plan at the Kirovabad plant, the production at the Tauz plant must have been at least in the vicinity of 30,000 tons. z. The annual capacity of this plant is planned to be 616,000 tons of cement. 277/ aa. 278/. This plant expected to produce 3,000 tons of cement in about half a month in 1957. The total calculated on this basis was rounded. bb. 279/. Four plants are listed Bol'shevik, Kommunar, Komsomolets, and Krasnyy 50X1 Oktyabr'. cc. The output per 150-meter kiln in this plant in 1955 was 200,000 tons. 280/. There were to be four 150-meter kilns with a total minimum production of 800,000 tons a year. 281/ The fourth kiln was opera- tive in July 1956. 282/ Thus 3 kilns operated all year producing 200,000 tons each, and the fourth kiln operated half the year. for the region was therefore divided between the 2 plants almost?equally. -58- ? S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E7C-R-E-T Table 19 Plan Fulfillment and Estimated Production of Cement Plants in the USSR by Region and by Republic 1956 (Continued) dd. The output of 3 plants as well as a.residual of 1.3 million tons remained to be accounted for in the region. Available information suggests that the Podgornoye plant had a slightly higher output than the Podol'sk plant and that the Tula plant produced approximately half the amount of each of the other two plants. ee. The output of 5 plants as well as a residual of 1.318 million tons remained to be accunted for in the region. Available information in conjunction with the respective plan fUlfillments (in the first column) resulted in these estimates of production at each of the five plants. if* EDI gg. In 1956, output was to .increase by 90,000 tons above 1955. 284/ In April 1956 it was stated that the capacity of the plant was to be increased by 35 to 40 percent in a relatively short time. 2.?.5/ This in- crease yields a projected output of from approximately 315,000 tons to 347,000 tons. The plan fulfillment for the year (see the first column) of 86.7 percent was applied to this range, yielding a range of ap- proximately 260,000 tons to 300,000 tons. The midpoint of the range was chosen for the estimate of pro- duction. hh. 2?_/. Total planned production was 586,000 tons. The plan fulfillment figure (in the first column) was applied to this figure. ii. Output per 150-meter kiln in 1955 was 131,500 tons. 287/ Four kilns with the same output were assumed for 1956, and the resultant figure was rounded to the nearest 5,000 tons. The facilities of this plant are identical with those of the Sebryakovo plant, and both plants were completed at approximately the same time. LBW jj. This is believed tobe the only plant in the republic which is producing a high enough grade of cement to be considered in the national total. kk. This plant was to install a new kiln which was planned to almost double the output of the plant. 2242/ It was assumed to be a 62-meter kiln, which has a capacity of 60,000 tons per year (see Table 10, p. 29, above), and that installation was not complete by the end of 1956. 59 S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 19 Plan Fulfillment and Estimated Production of Cement Plants in the USSR by Region and by Republic 1956 (Continued) 11. This plant was to install a new 150-meter kiln which was planned to almost double the productive capac- ity of the plant. 290/ A kiln of this size has a capacity of 225,000 tons per year (see Table 10, p. 29, above). The kiln was probably not installed by the end of 1956. mm.--291) nn. This plant appeared to have one kiln. 292/ It was assumed to be a 62-meter kiln, which has a capac- ity of 60,000 tons per year (see Table 10, p. 29, above). oo. Krasnoyarsk had 3 technological lines, 293/ and Timlyuy had 2 lines. 294/ Production was estimated on the basis of a 3-to-2 ratio applied to the remainder of production for the region (672,000 tons). pp. In 1957, more than 46,000 tons of cement had been produced by NoveMber. 295/ Thus on an annual basis, production should have been about 56,000 tons. This figure was modified by the plan fulfillment figure (see the first column) to obtain the estimated production for 1956, and the figure was rounded to the nearest 5,000tons., -6o- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 20 Labor and Electric Power Inputs of Cement Plants in the Ministry of the Construction Materials Industry of the USSR by Size of Plant al 1955 Annual Production (Thousand Metric Tons) Plants Production (Percent of Total) Number of Workers (Percent of Total) Average Annual Production per Worker (Metric Tons) Electric Power Consumption per Man-Hour hi (Kilowatt-Hours) Number Percent of Total 100 or less 9 13.4 2.4 5.8 211 8.9 101 to 200 . 13 19.4 9.0 12.8 361 11.3 201 to 300 17 25.4 19.1 24.9 389 18.1 301 to 450 9 13.4 15.2 14.0 552 20.8 451 to 600 11 16.4 25.6 21.8 600 23.9 Above 600 8 12.0 28.7 20.7 709 28.4 For all plants 6.1 100.0 100.0 100.0 504 20.8 a. 296/. The Ministry controlled 90 percent of the cement plants in the USSR. There 74 cement plants in the country in 1955 (see Table 7, p. 25, above). b. Used for motive power. -61- S-E-C-R-E-T Declassified in Part- Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 was a total of .1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 S-E-C-R-ELT Table 21 Production of Cement in the USSR, by Type 2/ 1940 and 1950-55 Percent ? Year Portland Portland Slag Pozzuolana All Other Types Total 1940 56.1 26.4 8.7 8.8 loom 1950 51.8 32.1 11.5 4.6 100.0 1951 50.1 33.6 13.1 3.2 100.0 1952 52.0 32.6 12.0 3.4 100.0 1953 55.0 30.1 11.9 3.0 100.0 1954 51.2 32.4 13.8 2.6 100.0 1955 44.o 34.6 ?13.4 8.0 100.0 a. 221/. See I, p. 2, above, for technical definitions of these types of Cement. -62- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 S-E-C-R-E-T Table 22 Distribution of Production of Cement in the USSR, by Republic Selected Years, 1940-60 Percent Republic . 1940 La/ 1950 2/ 1955 2/ 1956 12/ Original 1960 Plan RSFSR Ukrainian SSR Belorussian SSR Uzbek SSR Kazakh SSR Georgian SSR Azerbaydzhan SSR Lithuanian SSR Latvian SSR Tadthik SSR Armenian SSR Turkmen SSR Estonian SSR Karel'skaya ASSR Moldavian SSR Kirgiz SSR 62.9 21.5 3.5 4.7 0 2.1 2.0 0 1.1 0 1.7 0 0.6 0 0 0 64.6 19.7 3.4 3.5 0.2 2.6 1.3 0 2.1 0.2 1.5 0.1 0.9 0 0 0 64.9 20.5 2.4 2.1 1.6 1.7 2.3 0.9 1.6 0.1 0.9 0.3 0.5 0 0 0 64.3 20.0 2:2 1.9 2.2 2.7 2.7 0.9 1.5 0.1 0.8 0.3 o.4 0 0 Negligible 66:4 2/ 14.3 2/ 1.8 2/ 2.6 2/ 5.8 2/ 2.2 2/ 1.7 21/ 1.1 2/ 1.1 21 0.6 2/ 0.8 2/ 0.8 2/ o.4 2/ 0.2 2/ 0.2 1/ Negligible Total 5/ 100.0 100.0 100.0 100.0 100.0 a. 298/. Given in metric tons. b. 222/. Given in metric tons. c. .322/. Planned production increase given by republic. d. This percentage is the residual after all other percentages were determined. e. )31/. This estimate is based on the statement that hearth ? (slag) cement is to be produced for the first time, making it pos- sible to import less cement from other parts of the country. f. 32.21. This estimate is based on a plan to build a cement plant in Rybnitsa during the Sixth Five Year Plan (1956-60). g. Totals are derived from unrounded data and may not agree with the sum of their rounded components. -63- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 le# 40 Next 12 Page(s) In Document Denied e Declassified in Part - Sanitized Copy Approved for Release 2013/07/01: CIA-RDP79R01141A001200130002-1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1 SECRET SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/07/01 : CIA-RDP79R01141A001200130002-1