PROBLEMS OF THE KAZINCBARCIKA PROJECT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700200104-2
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 31, 2011
• Sequence Number: 104
• Publication Date: September 21, 1954
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/08/31 :CIA-RDP80-00809A000700200104-2
STAT
Sanitized Copy Approved for Release 2011/08/31 :CIA-RDP80-00809A000700200104-2
 Sanitized Copy Approved for Release 2011/08/31 :CIA-RDP80-00809A000700200104-2
STAT
PROBLEMS OF THE KAZINCBARCIISA PROJECT
Nepszava
Buda'-pe t,s 3 Jun 1954
Ferenc Baktai
Kazincbarcika, a recently unknown small torn in the vicinity of Miskolc,
is the site of one of Hungary's giant industrial project. Currently, n coal
grader, a power plant, a coking plant, a chemical works, and a 2lausing devel-
oPment are under construction. The ultimate capacity of the power plant may
be estimated by the fact that the first machine unit, which x111 be placed in
operation this year, will produce as much power as the Kom1o and Msza power
plants together. After completion the Kazincbarcika power plant will, there-
fore, be a key factor in Hungary's power supply.
The coking plant is designed to use the brown coal mined in the sur-
rounding area for the production of coke and briquettes for household use and
fuel gas for Miskolc and Kazincbarcika. It will supply the chemical works
with large amounts of basic materials. Experiments are also being conducted
for producing metallurgical coke from the local brown coal,
The focal point of the new industrial region will be the chemical xorks.
Its chief product will be Pet salt, and production of this fertilizer is es-
timated as 1.5 million quintals per year.
The electric motors for the chemical works are being built by the Buda-
pest Klement Gottrmld Electric Works and the equipment for the gasxorks by
the Gyor Wilhelm Pieck Railroad Car and Machine Works. One of the most im-
portant components of the chemical works will be the 350-atmosphere, 10,000-
cubic meter compressor, which is under construction in Budapest at the MAVAG
(Magyar Allami Vas-, Acel- es GePp'ar, Hungarian State Iron, Steel, and Ma-
chine Works}, Work on this compressor, hoxever, has been lagging for a long
time; after delivery installation will require !~-5 months.
Tardiness is the production of equipment components is frequently due
to the fact that the raw materials and semifinished products have to be sent
through a chain of enterprises until the finished product is completed.
the b0uilding~ndustr defects are manpoxer shortage and poor organization of
has contracts with the construction entei Troszt (Borsod Industrial Trust)
These enterprises not only failed to fulfllstheir relatively sm~llBplansng
for the first quarter of 1951, but even announced in advance that their se-
cond quarter plans will not be'fulfilled. The slowing down in construction
activity is due mainly to manpoxer shortage which, in turn, is the result of
low ;rages as compared with those paid in mining and agriculture. The lox
level of wages, despite a 10 percent incentive premium, is due to poor manage-
ment and serious shortcomings in labor organization. The construct9.n: 'rests
which are building the Kazincbarcika project are directed by remote control.
Frort~ time to time, officials of the ministry visit the building site in an
effort to coordinate the various contractors and subcontractors, usually with
little success.
only problem~rhoxevern oThehsituationcisosimilarsinnthenMinistre6ofsHeat the
dustry, which has ,jurisdiction over building investments. As ayresult ~ In
struction activity at Kazincbarcika is directed by two central authorities,'
namel , con-
y, the Borsodi Ipari Troszt and the Sa,jomenti Vegyimuvek (Sa,jo Valley
Chemical Works). The offices of these agencies are located on the same floor
of tt~e same building to Budapest; yet they corvnunicate xith one another by
correspondence in;.tead of making personal contact.
Sanitized Copy Approved for Release 2011/08/31 :CIA-RDP80-00809A000700200104-2
 Sanitized Copy Approved for Release 2011/08/31 :CIA-RDP80-00809A000700200104-2
STAT
is un ortunate8lhowevert direction byrtwocindependentdagenciesfis definitely
unsound, and detrimental to economic operations. Traveling expenses of the
Borsodi Ipari Troszt during the last 4 months, for example, amounted to 91,000
foriats. 'Also, dual ,jurisdiction often results in conflicting directives and
instructions which unsettle orderly Work.
A sound reorganization is, however, beginning to take shape. Next Septem-
ber, the Borsodi Vegyipari Kombinat (Borsod Combine of the Chemical Industry)
will be organized with a more simple, efficient, and economic structure. Its
main advantage will be that the majority of top-level personr:el will move to
Kazincbarcika to take charge of the construction of the project at the build-
ing site.
STAT
Sanitized Copy Approved for Release 2011/08/31 :CIA-RDP80-00809A000700200104-2