COST OF CONSTRUCTION AND CAPITAL INVESTMENT IN SELECTED PLANTS OF THE SOVIET AIRCRAFT INDUSTRY: GOR'KIY AIRFRAME PLANT ORDZHONIKIDZE NO. 21

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01049A003700160002-2
• Release Decision: RIPPUB
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• Document Page Count: 12
• Document Creation Date: November 17, 2016
• Document Release Date: July 21, 2000
• Sequence Number: 2
• Publication Date: August 6, 1965
• Content Type: REPORT

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COST OF CONSTRUCTION AND CAPITAL INVESTMENT
IN SELECTED PLANTS OF THE SOVIET AIRCRAFT INDUSTRY:
GOR'KIY AIRFRAME PLANT ORDZHONIKIDZE NO. 21
CIA/ RR EP SC 65-16
(ORR Project No. 33. 4692A)
Handle Via Indicated Controls
TALENT-KEYHOLE
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
NO FOREIGN DISSEM
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of the espionage laws U. S. Code Title 18, Sections 793 and 794. The law prohibits its transmission or
the revelation of its contents in any manner to an unauthorized person, as well as its use n any manner
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This publication is an engineering estimate of the cost of replace-
ment of Gor'kiy Airframe Plant Ordzhonikidze No. 21 and is one of a
series of cost estimates of aircraft facilities. It is intended for use as
one basis of industrial and production analysis. In establishing the cost
of replacement, a construction/capital-investment ratio common to con-
struction costs was used in all computations.
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Page
Summary and Conclusions . . . . . . . . . . . . . . . .
I. Introduction . . . . . . . . . . . . . . . . . . . .
II. Methodology . . . . . . . . . . . . . . . . . . . .
B. Climatic and Soil Data . . . . . . . . . . . . . .
C. Physical Facilities . . . . . . . . . . . . . . .
D. Cost of Construction and Capital Investment ... . . .
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Appendix
Source References . . . . . . . . . . . . . . . . . . . . 7
Table
USSR: Capital Investment and Cost of Construction of Gor'kiy
Airframe Plant Ordzhonikidze No. 21, Pre-1941 - January
1965 . . . . . . . . . . . . . . . . . . . . . . . . . . 6
USSR: Gor'kiy Airframe Plant Ordzhonikidze No. 21 following
page . . . . . . . . . . . . . . . . . . . . . . . . . . 4
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COST OF CONSTRUCTION AND CAPITAL INVESTMENT
IN SELECTED PLANTS OF THE SOVIET AIRCRAFT INDUSTRY:
GOR'KIY AIRFRAME PLANT ORDZHONIKIDZE NO. 21*x
Summary and Conclusions
The total cost of construction of Gor'kiy Airframe Plant Ordzhonikidze
No. 21 is estimated to be US $49 million, or 28 million rubles. ** Based
on the estimated relationship between the cost of construction and total
fixed capital assets for this industry, ",'c* total capital investment (which
includes cost of construction) at this plant is estimated to be US $111 mil-
lion, or 62 million rubles.
Expansion of the original plant, built in 1931-33, was noted in 1955.
Construction activity has continued to the present time with major empha-
sis on the machine /workshop and assembly types of structures. At pre-
sent, activity is noted on two structures. The taxiway connecting the plant
area with the Gor'kiy/Sormovo Airfield is estimated to have cost $600, 000.
The estimates and conclusions in this publication represent the best
judgment of this Office as of 15 July 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
by multiplying 1963 prices by a factor of 0. 792, 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. The factor for the direct conversion
of 1963 dollars to 1955 rubles is 0. 562.
**-,< For a detailed methodology, see source 1/. (For serially numbered
source references, see the Appendix. )
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Gor'kiy Airframe Plant Ordzhonikidze No. 21 is located approximately
3. 7 nautical miles (nm) west of the Oko River and 2 nm southwest of the
Volga River in the Sormovo district of Gor'kiy. The area within the plant
boundarywall is approximately 198 acres. The plant is connected by taxi-
way to the Gor'kiy/Sormovo Airfield, located about 1 nm to the west, and
is served by highway and rail. Originally built in 1931-33, it suffered
only slight damage during World War II. In 1945 the Lavochkins Special
Design Bureau, which had been connected with the plant, was moved to
Moscow. From 1945 to 1955 there were no major additions to the plant.
In 1955, construction activity was apparent and has continued in varying
degrees to the present. 2/
The plant layout and the identification of the major buildings, by type,
used as a basis of estimating construction costs in this publication are
shown in the chart. * The share of the total building cost found to apply
to the different types of buildings is shown in the following tabulation:
Type of Building
Percentage Share of
Total Cost of Buildings
Engineering/administration**
10
Forge/foundry
2
Machine/workshop
27
Assembly
?+8
Storage
5
Miscellaneous/unidentified
8
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* Unless otherwise indicated, identification and dimensions of the build-
ings are from published CIA/PID reports and from reports of this Office.
* * An area equal to 4 percent of the roof area was used in costing this
function.
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II. Methodology
Construction costs in this publication are based principally on
1963 unit costs prevailing in an area of the US having climati-- conditions
analogous to Gor'kiy.
B. Climatic and Soil Data 4/
The climate of Gor'kiy is roughly similar to that of Duluth,
Minnesota, being characterized by long cold winters, short warm sum-
mers, and moderate precipitation and snow cover.
Plant No. 21 is located on flat to slightly rolling terrain less
than 50 feet above the VolgaRiver water level. For installat:ons having
foundations less than 10 feet deep, conditions below the level of frost
(absolute maximum of 6 feet) range from fair to. good.. For installations
requiring deeper (more than 10 feet) excavations, conditions range from
poor to fair. The water table is always less than 25 feet.
C. Physical Facilities 5/
The major buildings are of steel frame and sheet or brick con-
struction. Roofs vary both in design (gable, flat, and monitor) and in
material (concrete, slab, or sheet metal).
D. Cost of Construction and Capital Investment
The cost of construction of those items in the category of build-
ing construction has been estimated on the basis of the volumetric unit
cost for the particular types of structures. Heavy construction costs
are .estimated on the basis of plant size, work force, construction sea-
son, and foundation conditions.
Capital investment was determined from the total cost of con-
struction for each period of time. 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 autor.nobile
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industry, or 44. 7 percent. 6/ Capital investment and cost of construc-
tion, distributed over time, are shown in the table.
Available data do not warrant or allow the precise cost estimate that
is inherent to competitive US industry. Assumptions, the validity of
which cannot be checked, have been made on the basis of experience. The
measurements used for the determination of building volume are con-
sidered to be the most complete to date; however, data on facilities
normally built by heavy construction forces are scarce. On the basis of
a belief that errors in the assumptions will tend to balance out, the prob-
able range of error of plus or minus 25 percent has been estimated.
* 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 automotive 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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USSR: Capital Investment and Cost of Construction of Gor'kiy Airframe Plant Ordzhonikidze No. 21 J
Pre-1941 - January 1965
January 1941 - August 1960 - January 1962 - August 1963 = Thousand Thousand
Pre-1941 July 196C December 1961 July 1963 January 1965 1963 US New Rubles b/
Capital
investment c/ 65,828 8,653 12,226 16,749 7,179 110,635 62,177
Of which:
Construction 29,425
Buildings 28,106
Engineering/
administration 2,754
Forge/foundry 756
Machine/workshop 7,815
Assembly 13,250
Storage 2,339
3,868 5,465 7,487 3,209 49,454 27,793
3,820 5,408 7,451 3,175 47,960 26,954
443 590 590 540 4,917 2,763
756 425
1,185 1,563 1,503 1,000 13,066 7,343
2,000 3,000 5,000 23,250 13,066
2,339 1,315
192 255 358 1,635 3,632 2,041
48 57 36 34 1,494 840
W -J
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Miscellaneous/
unidentified 1,192
a. Fur piu?puses of esiimaUiun and cumparisuu, Lie dai.a shown here have nui been ruwided. The dai,a, however, are be-
lieved to be accurate as to general magnitude.
b. Expressed in 1955 Prices.
c. Derived from costs of construction.
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APPENDIX
SOURCE REFERENCES
25X1A
1. CIA. CIA/RR EP SC 64-16, Cost of Construction and Capital
Investment in the Dnepropetrovsk Missile Development and
Production Center, 30 Oct 64, p. 8-11. TS CHESS RUFF/NO
FOREIGN DISSEM.
2: CIA. OCR/FIB Summary Sheet 7010710, 1 Apr 60. S.
3.
4. CIA. CIA/RR GB 65-8, Climate and Soil Data on Gor'kiy, USSR,
Feb 65. S.
5. CIA. OCR/FIB Summary Sheet 7010710, 1 Apr 60. S.
6. CIA. CIA/RR EP SC 64-16 (1, above).
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