EXPANSION OF THE EAST GERMAN CHEMICAL INDUSTRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600330935-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 29, 2011
• Sequence Number: 935
• Publication Date: August 22, 1950
• Content Type: REPORT

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CENTRAL IN ELLIGENCE MGC17v1 ?TV? O???
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
CLASSIFICATION CONFIDENTIAL CORVII ,NTIAL
COUNTRY Soviet Zone Germany DATE OF
INFORMATION 1950
SUBJECT Economic - Chemical industry
HOW
PUBLISHED Weekly periodical
WHERE
PUBLISHED Berlin
DATE
PUBLISHED Feb 1950
LANGUAGE German
0 THE OllTm STATES 11TN1N INS .o... o..... -_
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S. C.. SI AND M AS AN1NOEO. In TIMENISSIOS ON THE ttrlLATION
Or ITT CONTENTS It ANY NANKIN TO AN UNAOm0O12!0 PERSON IS PRO'
.101TEO ST LAN. aS-000OCTON or TNI$ rolN It -EONISITEO.
Export Echo, No 7, 1950.
DATE DIST. 4,14- Aug 1950
NO. OF PAGES 3
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
EXPANSION OF THE EAST GERMAN CHEMICAL INDUSTRY
In the years immediately preceding World War II, chemicals, valued at an
average of 750 million Reichsmarks per year, constituted nearly 18 percent of
total German exports. Today, the German chemical industry, while hardly in a
position to compete with these figures, has again become an important source
for international requirements.
The 1950 plan of the German Democratic Republic provides for the develop-
ment of chemical plante to increase production and exports. Moreover, consid-
erable funds have been set aside for research. In 191+9, the various plants
comprising the Associati6n of People-Owned Chemical Enterprises booked as much
export uuainaao n the Lumcrous mmedi TTm-sized and small r,rivate plants which
turn out special products bearing well-known trademarks.
Increased production by many chemical plants, including those of the German
potash industry, about two thirds of which are located in the. Soviet Zone of
Germany, has made expansion of exports possible. Potassium salts produced in
East Germany have been shipped to Poland, Czechoslovakia, and the Scandinavian
countries during 1949. Recently China has been added to the list of foreign
consumers. Planned increases in the output of nitrogenous fertilizers will
not only cover domestic requirements but will permit exports.
The economic plan places heavy emphasis on the production of sulfuric acid
to assure adequate quantities for the synthetic fiber and other industries.
Experiments conducted* in.this field may lead to a considerable conservation of
raw materials, as demonstrated by a.process for producing a fertilizing agent
made of' calcined phosphate without the use of sulfuric acid.
Another indication of further development of the chemical industry in the
Soviet Zone is the expansion of sebacic acid production. Measures adopted re-
cently, in-this connection, 'might prove of great significance for exports. New
installations for the mass?production of synthetic sebacic acid have been set
up in Freital near Dresden. The Sapotex Association of People-Owned Enterprises,
which- includes the Persil plant in Genthin, is making increasing use of paraffin
oxidation and produces new types of cleansing agents with a mersolate base.
CLASSIFICAT#ON . CONFIDENTIAL.'
NAVY NSRB DISTE;IBUTION
AIR FBI _Kj
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CWHIM NTUAL
Principal chemical plants in East Germany are the Leuna Works, the Wolfen
film factory, and !the Buns. Chemical Works. The latter manufactures not only
nitrogen and motor''fuel but photographic materials, Igelit, and synthetic rub-
ber. The Leuna plant is planning to increase its production of lacquers and
paints, polishes, soaps, and improved Perlon products. A preparation for
treating wood and a binding agent which is a substitute for Portland cement
are recent discoveries. The photographic chemicals industry in Central Ger-
many is producing film and photographic materials which meet exacting require-
ments of modern photography. A mounting supply of available raw materials,
such as gelatin, etc., is responsible for the increased output.
Plants affiliated with the Association of People-Owned Carbon Products
have concluded trade agreements with the Netherlands, Sweden, Poland, Finland,
and Denmark, for shipments of montan wax, test benzine fa turpentine substi-
tut], phenol, etc., during the current year.
East Germany's pharmaceutical industry is rapidly resuming its role as
supplier in foreign markers. Productive capacities have been expanded, and
quality is being improved constantly. Expansion of the penicillin output
by the Jenapharm Institute for Microbiology, a branch of the Schott and As-
sociates Glassworks in Jena, can be cited as an example. The volume of
penicillin produced by this plant in 1949 was 22 times that of the previous
year. When coupled with the output of the Madaus plant in Radebeul near
Dresden, the current penicillin production amounts to 100 times that of 1947.
The Jena output alone, which currently amounts to 60 billion Oxford units
per month, not only covers the requirements of Soviet Zone Germany but creates
a surplus for export. It is also significant that lower production costs have
.permitted reduction of the retail price to less than one tenth of that of the
previous year.
Sufficient quantities of streptomycin, vitamins C and D, and tuberculosis
vaccines have been produced by this plant to permit exports of these products.
Other pharmaceutical plants have manufacturedypreparations for treating perni-
cious anemia, as well as improved prophylactics for the prevention of nose and
throat infections. One of the preparations which has been developed by the
Thueringen pharmaceutical industry is a remedy for bilious complaints. An
enterprise in Erfurt produces a medication for coronary diseases which can
also destroy tubercular bacilli. The internationally known Rosodont Plant,
currently East Germany's largest soap and cosmetics factory, has developed
a toothpaste of proved merit as a preventive for inflammation of the gums.
The plan of the East German chemical industry also includes sizable in-
creases in the production of caustic soda, insecticides, and tannic acid.
Large quantities of household chemicals will be made available for export.
Among prospective consumers are West European and South American countries.
Orders for concentrates and essential oils have been received from Southeast
European countries.
Exports of lacquers and dyestuffs have again reached significant volumes.
Colored varnishes and lacquers, as well as printing inks, are available in
grades and varieties to meet any foreign competition. This is especially true
of products based on synthetic-resins. Raw material sources for synthetic
resin and molded plastic are assured, and East Germany is in a position to
export molded plastic materials, die-cast products, and synthetic leather
it semifinished or finished form.
Advances made in food chemistry have been of practical value to the food
and beverage industry of Soviet Zone'Germany. For example, yeast has been used
to induce the formation of glycerine in raw materials with a sugar content. A
new type of intensified saccharin has been produced from phenol made of brown
coal tar. This saccharin leaves no harmful aftereffects, can be used for cook-
ing, and also tends to reduce fever.
CO FiVENTIAL
50X1-HUM
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009FI NTIA1
A plant in Warnemuende has started production of agar-agar from seaweed
taken from the Baltic.
Waste gases resulting from the fermentation of molasses have been used to
produce carbonic acid in liquid form. After purification and the removal of
flavoring matter, this chemical is comparable with carbonic acid produced from
coke. Other plants in Sachsen-Anhalt have taken up the production of pure
lecithin from rape and linseed oils.
CCI FIDEjTIAk
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