The Abrasive Industry of Eastern Europe and the USSR.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A000500250004-2
• Release Decision: RIFPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: November 9, 2016
• Document Release Date: July 20, 1998
• Sequence Number: 4
• Publication Date: June 17, 1949
• Content Type: IM

Approved For Release : CIA-RDP78-01617A000500250004-2
iM-184 29 ec run
1 thru 5 to Col Halversen
6 through 9 to DCI (for further dissemination, ie.
Cent. Records, addressee,,,,
#10,11,12,13 B/EE
#1.4 G/GS Y r
#15,16,17,1? -S/PP
OCD #19,20,21 for OCD,OPC,00
Approved For Release : CIA-RDP78-01617A000500250004-2
 I.J
Approved For Release CIA-RDP78-01617A000500250004-2 14
CENTRAL INTELLIG CE AGENCY
INTELLIGENCE MEMa.ANDUM NO. 185 17 June 1949
St JECT: The Abrasive Industry of Eastern Europe and the US`R.
Abrasives are of critical importance in a state's war potential, and
represent one of the most sensitive points at which an-industrial economy
can be controlled. Artificial abrasives and industrial diamonds, necessary
to advanced industrial technics, are among the items in which the Soviet-
controlled economies stand in great need. Although both the USSR and Czecho-
Slovakia have sizeable abrasives industries, their combined production is
not sufficient for their own requirements, to say nothing of those of the
entire Soviet orbit. The USSR's most critical lack is in precision grind-
ing wheels, which Soviet industry cannot yet manufacture, and without which
Soviet machine tool production is quantitatively and qualitatively handi-
c8pped. With an its abundant resources, the USSR is dependent upon imports
for such essentials in the abrasives industry as graphite electrodes, silk
bolting cloth, natural rubber, and she?lac.
Shipments of abrasive raw materials and finished abrasives are helping
to alleviate this shortage to some extent. In view of the limited informa-
tion available on abrasives production and requirements, it is extremely
difficult to relate western shipments to the normal requirements of Eastern
Europe.- It is estimated, however, that actual shipments have not been in
excess of current requirements, and that therefore stockpiling of abrasives
has not been possible. Western exports of abrasives to Eastern Europe would
have been larger had it not been for the initial inability of American and
British suppliers after the war to fill the large orders from Eastern Europe,
and the more recent refusal of American manufacturers to accept Soviet or
Satellite orders.
A detailed report on the abrasives situation in Eastern Europe and the
movement bf abrasives to that area is attached as Enclosure "A".
Attention is drawn to earlier information on this subject presented in
IM$2 and IM-150. Further information will be provided as it becomes avail-
able. A comprehensive study of the abrasives situation in the world as a
whole is under preparation.
Notes
fihia memorandum has not been coordinated with the Intelligence Organi-
Nb CHANCE in Class.
TO: TS S C
nations of the Departments of State, Arm, Navy, and Air,
~iatib,-? titian; not for circulation outside IAC Agencies.
An edition which has been modified to protect certain CIA sources has
been prepared for more general distribut @ rent rio. 0A
4 Apr 77
77/1763
y
B.
Approved For Release : CIA-RDP78-01617A000500250004-2
aya9~
 Approved For Release : C A- 016.17A000500250004-2
ENCLOSURE A
THE A$RA IVE IITDiTSTRZ OF E3TM EUROPE AND THE USt
la ,trc.
Abrasives are of the greatest importance to any industrial econcrtyr? The
process of grinding, involving the use of abrasives, enters into every phase
of precision production in the metal working and optical industries, as well
as being a major standard production method in all types of light arid heaver
industry.
Abrasives found in the natural state, with the exception of diamonds and
the better grades of corundum, are too soft for most industrial uses, This
report will therefore be concerned with artificial abrasives with brief men-
tion being given to industrial diamonds.
The artificial abrasive industry is of American origin and began in the
latter part of the 19th century when the American scientist, Dr. E. G" AchesoZ.i,
discovered the electrode method of producing artificial abrasives. Dr. Acheson
subsequently founded the Carborundum Company to exploit this process, and that
oanpany now his several subsidiaries in Europe. The United Carborundum Com-
$ny in Czechoslovakia was formed as the result of the purchase by Czech ins
dustrialists of Dr. Acheson's patents. The technical Inc-how for manufactur-
ing artificial abrasives is available or in practice in most of the industrial
countries of the world including the USSR. The Qnited States has always been
the leading producer, consumer, and exporter of artificial abrasives.
Artificial abrasive products employ the use of either of two basic aom-
modities, aluminum oxide or silicon carbide. Both o' these are produced in elec-
tric furnaces, The crystals that result from this electrolytic process are
anwhed and then sifted into grain sizes. It is these grains which go into
Approved For Release : CIA-RDP78-01617A000500250004-2
 # low,
Approved For Relea
s 78-01617A000500250004-2
the production of coated abrasives, such as sandpaper and garnet cloth, and
into the bonded products-. grinding wheels, sticks, and hones.
Approximately 60 percent of the output of crude silicon carbide is used
for abrasive grain; the remainder is used for refractories. All except a
sms11 fraction of the fused aluminu oxide production goes into abrasive grain..
Approximately 15 percent of abrasive grain is used in the manufactuwe Of
coated abrasives; 25 percent is employed as grain in a wide variety of asses
such as sandblasting; the bevelling and polishing of glass, granite, marble
and stone; lithographing; and in refractories. The remaining 60 percent is
used in bonded abrasives - wheels, sticks, and hones.
The production of abrasive crude is dependent upon an a>e supply
of raw materials--bauxite in the case of fused aluminum oxide, and
silica and high-grade coke for silicon carbide (petroleum coke is required for
the better grades of silicon carbide). A large quantity of cheap electric
power is required to run the electric furnaces, while a certain degree of
ceramic know-how is basic to the whole operation.
Abrasive wheels consist of the abrasive grain (aluminum oxide or silicon
carbide), bonded together with some other material such as kaolin feldspar,
china clay, natural rubber, or shellac. Vitrified wheels, containing one
of the clay products mentioned above, constitute approximately 50 percent
of the output of abrasive grinding wheels. The manufacture of grinding wheels
requires a higher degree of technical know-how than the production of abrasive
grains. Advanced technical knowledge is of particular importance in the mane-
facture of 'ecigi_M grinding wheels.
The field of coated abrasives is considered to be of less importance than
that of bonded abrasives and is therefore omitted from this survey.
Approved For Release : CIA-RDP78-01617A000500250004-2
 Approved For Release : CIA-RDP78-01617A000500250004-2 in
"One U.S. manufacturer received identical orders from five different agents and
identified them as being similar in quantity, specifications, and terminology
with an inquiry placed by Teccno Import in Moscow. Green silicon carbide is
important because of its use in the manufacture of wheels used for grinding
tungsten carbide tools. No known production of this material exists within
the Soviet orbit probably because it requires the use of petroleum coke in
its manufacture. To the best of our knowledge no U.S. firms have quoted on
this order. The quantity is not considered to be in excess of current Soviet
requirements for silicon carbide
(2) Cz~coslov?
(a) Rea e.,nts a. b: .
Czech requirements of abrasive grains are estimated at 8,000
tons of aluminum oxide a -ad 3,000 tons of silicon carbide annually. United Car-
borundum is the only producer of abrasive grains in Czechoslovakia and has
a reported annual capacity of 8,000 tons of aluminum oxide. Official Czech
statistics, however, report that 1948 production of this commodity was only
6,121 tons. United Carborundum has apparently failed to restore its silicon
c rbide furnaces since the war, and Dr. Novak, the Company's director,, has
made persistent efforts to obtain this product in the United States.
(b) ImpgEtg,
The Czechs have indicated that they were purchasing 1,000
tons of silicon carbide a year from Norway and that they desired to purchase
another 2,000 tons in the United States. In 1948, however, the Czechs purchased
only 1,20 tons of silicon carbide from Norway and 813 tons from the United States.
They have apparently had no need to import any of their aluadnum .de require-
Approved For Release : CIA-RDP78-01617A000500250004-2
 Approved For Release : CIA-RDP78-01617A000500250004-2
ments and have demurred to the offers of U.S. manufacturers to substitute alu-
minum oxide for Czech silicon carbide orders,
(c) Tnnr~iri~c?
During the last three years the Czechs have tried repeatedly;,
and for the most part unsuccessfully, to secure large quantities of silicon
carbide from the U.S., but the quantities requested have not been in excess of
Czech requirements. The following inquiries have been reported during 1949,
on all of which the American companies have refused to quote:
(1) 1,000 tons of silicon carbide for the manufacture of
refractories. Inquiry received 11 February 1949 from U.S. agent for Pancosma
Ltd., Geneva, Switzerland,
(ii) 6.5 tons of silicon carbide. Inquiry received 11 Feb..
ruary 1949 from Siegel Chemical Co., Inc., Brooklyn= N.Y.
(iii) 2,000 tons of silicon carbide. Inquiry received
l April 1949,from Overseas Marketing Services, London.
In each of the above cases the agents involved stated the inquiries had
come from Czechoslovakia.
(3)
(a) PLCt$ d and ~HQ~a3re
Hungary has no known production of abrasive grains. Hungar-
ian abrasive grain requirements, largely for her grinding wheel industry, are
estimated at 400 tons of aluminum oxide and 150 tons of silicon carbide annually.
(b) .
In 1948 Hungary imported 48 tons of abrasive grains from the
United States, none from Norwegian, British, or Italian manufacturers.
Approved For Release : CIA-RDP78-01617A000500250004-2
 Approved For Release : CIA-RDP78-01617A000500250004-2
The Central Board of the Hungarian Ceramic Industry has made
numerous attempts to procure abrasive grains from V.S., British, and Caodian
suppliers, In a few cases these inquiries have been placed directly by the
Board. In most instances, however, the orders have been placed with American,
British, and Dutch agents. The following is a list of the inquiries vi,%ich have
been received:
Date of Inquiry Agent material Amount, Act ,
A. By a U.S. Manufacturer of Abrac!ive5>
1. 1G/8/l,-- Hungarian Ceramic Ind. Aluminum oxide--409 tons--No quote
29 10/8/48-- B. Rupkep Utrecht, Aluminum oxide--840 tons--No quote
r4 bid 150 tans o nu0te
3l/12/48..-M. Denes, Budapest
40 11/1`7/48--Block lnt 0 Corp,,,N.Y.
silicon ar V_
Aluminum Oxide--400 tons--No quote
Aluminum Oxide
regular & white--several hundred
thousand pounds
of each-No quote
5. l,2/l4/48-New World Suppliers, N.Y. Aluminum Oxide -not stated -
-quote
Bya U.S. machine tool and abrasive Co.s
].0
12/6/48--Corregidor Ltd.,London
12/7/48--Hungarian Ceramic Ind.
Abrasiti s Grains--x+40 tons--o quote
Identical order as above,--Nn quote
3,
B-i.
I2/l/48--U.S. export agent
By Same Company's UK subsidiarys
Aluminum Oxide--374 tons--No quote
I
London
idor Ltd
8
-Corre
12/
/
Abrasive Grains--100 tons--No quote
.
8,
g
4
-
.=
0,
U.S, Exporters
1
3/-/49-- Hungarian Gotta
Aluminum Oxide..-loo tons-- e Xp 't li-
cenee applied
fcr
Approved For Release : CIA-RDP78-01617A000500250004-2
 Approved For Release : CIA-RDP78-01617A000500250004-2
Added together, these inquiries would represent amounts far in excess
of Hungarye s requirements. The similarity of many of the orders indicates,
however, that the same order was probably placed with a number of agents in
the hope that at least one of them would materializes
X4) ?
(a) oduct~ on and Rya a 011.
Poland produces no abrasive grainss Requirements far such
grains probably range from 200 to 300 tons a years
(b)
During 1948 Poland imported 174 tons of silicon earbide from
Norway. The U.S.., Britain, and Italy exported jag abrasive grains to Poland
in 1948
(i) 100 tons of aluminum oxide, Placed by the Polish Ameri-
can Supply Corporation, New York, with an American manufacturer in December 1948.
Latter advised customer to obtain an export license and has heard nothing fur-
ther regarding the order,
(5) i?
(a) ~i'~,~Lr Rec!~en as
Rumania produces no abrasive grains. Rumanian requirements
are estimated at 200 to 300 tons a years
(b)
So far as is known, there have been no shipments of abrasive
grains from the U.S. and western Europe to Rumania since 1946, The USSR has
reportedly shipped some abrasive grain to Rumania from Germany.
Approved For Release : CIA-RDP78-01617A000500250004-2
 Approved For Relea?e~'Cl`-IYCP18-01617A000500250004-200
(c) `
(i) 200 to 300 tons of abrasives,' 'including silicoz.~ carbide
and aluminum oxide. Received during 1948 by an American exporter. So far as
is kn.mn, this exporter did not accept the order.
(6) Yang ia .
(a) od==c~a and,Rea cements.
Yugoslavia produces no abrasive grains. Requirements are
estimated at 300 to 500 tons annually.
(b) Im?
During 1948 Yugoslavia imported 109 tons of abrasive grains
from Italy, 45 tons from Norway and none from the United States. Imports during
1947 included 110 tons of silicon carbide from Norway and 217 tons of aluminum
oxide from the United States.
In addition to the above, three trade treaties signed by
Yugoslavia in 1948 called for the shipment of abrasive materials to that coup
try. The treaty with Czechoslovakia signed 24 Way cad led fort he shipnent of
3,0009000 Korunas worth of abrasives to Yugoslavia. A trade agreement with
the SovZone of Germany signed on 15 November 1948, effective until 31 May 1949,
provided for shipment of aluminum oxide to Yugoslavia, A trade treaty with
Austria signed on 31 August 1948 provides for the shipment to Yugoslavia of
abrasive materials to the value of $50,000. (Grinding wheels may be included
in the category of "abrasive materials" in some of these treaties). There is
no confirmation of actuiL shipments under any of these agreements. It does not
appear that the quantities in the aggregate would go any further than the supply-
ions of Yugoslavia's current requirements.
Approved For Release : CIA-RDP78-01617A000500250004-2
 (i) 1,500 tons raw abrasives. Inquiry received 21 Decem-
Approved For Release : l - -01617A000500250004-2
(c)am.
ber 19,e by U.S. exporter from Pay Impex, Now York City, Sfirm with Yugoslav
connections0 In April 1949 Pav Impex informed the U.S. exporter that the
order had been filled in Europe. It is doubtful whether any single European
manufacturer could fill such a large order which is certainly in excess of
Yugoslav requirements.
(ii) Numisrous additional inquiries of Yugoslav ari~in
were received by U.S. firms during 1948. The total quantity exceeded 16,000
tons, two-thirds of it aluminum oxide and the other third silicon carbide,
To the best of our knowledge, none of these inquiries was filled. It is be-
lieved that the Yugoslav Government hoped by placing these orders to fill its
import requirements in their entirety even though only a fraction of the
quantities requested were actually shipped. The desire to stockpile may also
have been the motive behind these large orders, although even for stockpiling
requirements, the quantities requested were excessive.
11
Approved For Release : CIA-RDP78-01617A000500250004-2