COST OF CONSTRUCTION AND CAPITAL INVESTMENT IN SELECTED PLANTS OF THE SOVIET AEROSPACE INDUSTRY: SARATOV AIRFRAME PLANT NO. 292

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01049A003700030002-6
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: November 17, 2016
• Document Release Date: July 7, 2000
• Sequence Number: 2
• Publication Date: March 10, 1965
• Content Type: REPORT

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COST OF CONSTRUCTION AND CAPITAL INVESTMENT
IN SELECTED PLANTS
OF THE SOVIET AEROSPACE INDUSTRY:
SARATOV AIRFRAME PLANT NO. 292
CIA/RR EP SC 65-3
(ORR Project No. 33. 4496A)
Office of Research and Reports
Handle Via Indicated Controls
TALENT-KEYHOLE
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This document contains information affecting the national security of the United States within the meaning
of the espionage laws U. S. Code Title 18, Sections 793 and 794. The low prohibits its transmission or
the revelation of its contents in any manner to an unauthorized person, as well as its use in any manner
prejudicial to the safety or interest of the United States or for the benefit of any foreign government to the
detriment of the United States. It is to be seen only by personnel especially indoctrinated cnd authorized
to receive information in the designated control channels. Its security must be maintained n accordance
with regulations pertaining toTALENT=KEYHOLE Control System.
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This publication is not an industrial analysis of Saratov Airframe
Plant No. 292 or its activity but is intended to be used in conjunction
with other reports as an aid in such analysis and as a source of supple-
mental data. The term aerospace industry refers to major plants for
the fabrication and assembly of missiles, aircraft, and related engines.
Common construction cost inputs and a common construction capital
investment ratio have been used in all computations. The basic method-
ology used to cost the facility was set forth in an earlier publication,
CIA/RR EP SC 64-16, Cost of Construction and Capital Investment in
the Dnepropetrovsk Missile Development and Production Center,
30 October 1964, TS CHESS RUFF/NO FOREIGN DISSEM.
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Page
25X1 D
Summary and Conclusions . . . . . . . . . . . . . 1
I. Introduction . . . . . . , , , , . . . . 3
II. Method of Estimating the Cost of Construction and
Capital Investment . . . . . . . . . . . . . . 4
A. Conditions in the Construction Area . . . . . . . 4
B. Physical Facilities Constructed . . . . . . . . . 4
C. Costing and Capital Investment . . . . . . . . . . 5
III. Limitations of the Data . . . . . . . . . . . . . . . 5
Appendix
Source References . . . . . . . . . . . . . . . . . . . 9
Table
USSR: Cost of Capital Investment and Construction in
Saratov Airframe Plant No. 292, Selected Periods, Pre-
April 1943 - July 1964 . . . . . . . . . . . . . . . . . 7
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COST OF CONSTRUCTION AND CAPITAL INVESTMENT
IN SELECTED PLANTS
OF THE SOVIET AEROSPACE INDUSTRY:
SARATOV AIRFRAME PLANT NO. 292*
Summary and Conclusions
The total cost of construction of Saratov Airframe Plant No. 292 is
estimated to be US $39 million, or 22 million rubles. ** Based on the
estimated relationship between the cost of construction and total fixed
capital assets for this industry, *** total capital investment (which in-
cludes cost of construction) at this-plant is estimated to be $88 million,
or 49 million rubles.
The major volume of construction activity was carried out before
April 1943. After the initial period, renovation, demolition, and/or
alteration of existing facilities was the main activity through the late
1950's. Since the beginning in 1960, production facilities have been ex-
panded by the addition of at least four new buildings.
* The estimates and conclusions in this publication represent the
best judgment of this Office as of 15 February 1965.
** Throughout this publication, dollar values are given in 1963 US
dollars, and ruble values are given in new rubles expressed in 1955
prices. Dollar values in 1963 prices have been deflated to 1955 prices
and then converted to new rubles in 1955 prices at the 1955 ruble-
dollar ratio of 0. 71 ruble to US $1 for all industrial construction.
*** For a detailed methodology, see source I/. (For serially num-
bered source references, see the Appendix. )
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Saratov Airframe Plant No. 292 is located in the USSR, approxi-
mately 3 nautical miles (nrn) southwest of the center of Saratov and
about 3, 000 feet west of the Volga River. This plant is connected by
taxiway to Saratov Airfield South, 0. 5 nm to the south,a.nd also is
served by major roads and rail spurs. The area within the plant
boundary fence is approximately 270 acres.
The plant layout used in this publication and the identification of
the major buildings, by type, are shown in the chart. * The share of
the total building cost allocated to different types of buildings is tabu-
lated below. Buildings adjacent to Saratov Airfield South are not in-
cluded in this publication.
Type of Building
Percentage Share
of Total Cost of Buildings
Engineering/administration
7
Forge and foundry
2
Machineshop/workshop
22
Assembly
56
Storage
3
Powerplant
and/or heating plant
7
Miscellaneous/unidentified
3
Total
100
Saratov Airframe Plant No. 292, originally named Kombain Zavod,
was built in 1931-32 for production of agricultural machinery and pro-
duced only farm implements until 1938, when partial conversion to pro-
duction of aircraft took place. In March 1952, Plant No. 292 received
additional equipment for production of aircraft from Plant No. 165 in
Dnepropetrovsk. Although production of aircraft at Plant No. 292 has
been continuous since 1938, consumer goods also have been produced
periodically by the plant. 2/ The volume and value of construction as
Following p. 4. Unless otherwise indicated, identification and dimen-
sions of the buildings are from published NPIC reports and from reports
of this Office.
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allocated over time and shown in the table'* are in accordance
H. Method of Estimating the Cost of Construction and Capital Investment
The basis for estimation of dollar costs in this publication was
the cost prevailing in 1963 for an area in the US having climatic condi-
tions comparable to those of Saratov. Northern South Dakota was :elected
as such a region.
Data on climate and soil for Saratov indicate that the upper layer
of sediments generally consists of silt, silty sand, and silty clay to a
depth of 20 feet. This upper layer is successively underlain by alt-arnating
beds of limestone, sandstone, conglomerates, and shale with a total thick-
ness of more than 500 feet and then by a.rgillaceous sandstone with an
average thickness of 150 feet. 4/
A construction season in this area of approximately 7 months
(from 15 April to 15 November) was considered appropriate on the basis
of climatic and precipitation tables. This assumption is consistent with
published Soviet data which state that supplementary expenditures must
be paid to compensate for the special conditions of production in winter-
time -- 152 calendar days (or roughly 5 months) of the year. 5/
The ground is frozen in the winter months with a maximum frost
penetration of 6 feet. The annual precipitation averages 15. 52 inches,
almost 65 percent of which occurs in the warm period.. Drainage problems
affecting construction are seasonal, as the water table varies from about
20 feet below the surface in spring (April and May) to about 100 feet in
summer and fall.
B. Physical Facilities Constructed 6/
The major buildings appear to be constructed either of steal
frame and sheet metal or of brick. Types of roof vary both in design
(gable, flat, and monitor) and in materials (concrete and sheet metal).
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C. Costing and Capital Investment
The methodology used in estimating the cost of construction is
detailed in a previous publication on the Dnepropetrovsk Missile Develop-
ment and Production Center. 7/ Buildings and structures were costed on
a building-by-building basis. The cost of heavy construction, consisting
of sanitary and storm sewers, water supply, roads, railroads, fencing,
electrical distribution, and fine grading, is estimated on the basis of
The costs of construction, distributed over time, are shown in the table.
Capital investment was determined from the total cost of con-
struction of the plant for each time period. The amount of construction
work as a share of fixed capital assets is known for a number of Soviet
industries as of 1 January 1956. The share of construction in fixed capital
assets used in this publication is the same as that of the Soviet automobile
industry* -- 44. 7 percent. 9/
III. Limitations of the Data
The limitations of the available data are such that a further expendi-
ture of time and effort could not improve significantly the estimates made
in this publication. Assumptions have been made, the validity of which
cannot be checked, regarding the labor force, vertical dimensions, details
of design, materials and equipment used, and the rate of construction. On
the basis of a belief that errors in the assumptions will tend to balance
out, a probable range of error of plus or minus 20 percent has been esti-
mated.
Particularly troublesome problems, which made necessary most of
the assumptions, were as follows:
1. The reliability of dimensions, particularly the vertical
dimensions;
* Data are not available on the ratio of the cost of construction to fixed
capital assets for the Soviet aviation industry. Of the data available,
those relating to the automobile industry are estimated to be most appli-
cable. Although the reported figure of 44. 7 percent has been used, it
should not be construed to mean that the figure is accurate to a tenth of
a percent.
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2. The lack of valid information relative to the size of th-~
construction and production labor force;
3. The lack of information on the magnitude of those facili-
ties that normally are underground; and
4. The lack of firm data on location of sources of supply
and on the time allowed by Soviet authorities for com-
pletion of each phase of construction.
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USSR: Cost of Capital Investment and Construction in Saratov Airframe Plant No. 292 a
Selected Periods, Pre-April 1943 - July 1964
Thousand 1963 US
Pre- April 1943 - January 1960 - December 1962 - Thousand.
April 1943 December 1959 November 1 62 July 1964 _ 1963 US
C Capital
investment c/ 48,085 17,242 13,412
8,787 87,526
Of which:
e0zi Construction 21,494 7 707
5,995 3,928 39,124
tIrl
Building 18,868
Heavy 2,626 7'567 5,954 3,898
35,860
n
1 30 3,264
a. For purposes of estimation and. comparison, the data shown here have not been rounded.
however, are believed to be accurate as to the general magnitude.
b. Expressed. in 1955 prices.
coo
Co) C. Derived from costs of construction.
- 7 -
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Thousand. / Z
New Rubles b 0
r
C
49,188 D
O
Z
21,987 --1 n
20,153
1,834
The data,
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1. CIA. CIA/RR EP SC 64-16, Cost of Construction and Capital Invest-
ment in the Dnepropetrovsk Missile Development and Production
Center, 30 Oct 64, p. -8-11. TS CHESS RUSS/NO FOREIGN DISSEM.
2. CIA. CIA/RR RA-14, Estimated Floorspace of Saratov Airframe
Plant No. 292, Jul 57, p. 2. S.
25X1 D 3.
25X1 D
4. CIA. CIA/RR GB 64-45, Climatic and Soil Data on Saratov, Nov 64,
p. 4. C.
5. USSR, Gosstroy. Spravochnik*posobiye po material'no-tekhnicheskomy
snabzheniyu stroitel'nykh organizatsiy (Reference Aid on Material-
Technical Supply of Construction Organizations), Moscow, 1963. U.
6. CIA. CIA/RR RA-14 (2, above), p. 3. S.
7. CIA. CIA/RR EP SC 64-16 -(l, above).
8. CIA. CIA/RR RA-14 (2, above).
9. CIA. CIA/RR EP SC 64-16 (1, above), p. 11-12. TS CHESS RUFF/
NO FOREIGN DISSEM.
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