CUTTING TOOL INDUSTRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80S01540R005900100002-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 22, 2016
• Document Release Date: August 9, 2012
• Sequence Number: 2
• Publication Date: August 16, 1954
• Content Type: REPORT

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CENTRAL INTELLIGENCE AGENCY
INFORMATiON REPORT
50X1-HUM
This Document contains information affecting the Na-
tional Defense of the United States, within the mean-
ing of Title 18, Sections 793 and 794, of the U.S. Code, as
amended. Its transmission or revelation of its contents
to or receipt by an unauthorized person is prohibited
by law. The reproduction of this form is prohibited.
SECRET/CONTROL - U.S. OFFICIALS ONLY
21011MOMMOWN
COUNTRY Hungary
SUBJECT Cutting Tool Industry
DATE OF INFO.
PLACE ACQUIRED
REPORT
DATE DISTR.
NO. . CW PAGES 1
REQUIREMENT NO. RD
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16 August 1954 .)
REFERENCES
THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE.
THE APPRAISAL OF CONTENT IS- TENTATIVE.
wisinsigemwhis,
FOR 'CRITICAL SECURITY
THIS -REPORT IS IT TU RE
TRANSPITED ';',uTiN THE
STATES. E3. rIc
THF. if
EXPRESS
3FFICE.
(c?
Enclosures: (A) BekAcsaba Cutting Tool Factory (1 page)
(B) Cutting Tools (General)(2 pages)
(C) Cutting Tool Factory Enterprise 3 pages)
SECRET/CONTROL - U.S. OFFICIALS ONLY
Field
FBI
AEC
No, 51 -Rmart TGAT
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.HUNGARY
Economic
Dekescsabai Porgacsolo Szerszamok Gyara
(Dehescsaba Cutting Tool FactorLIEEKESCS.ADA.
50X1-HUM
1. Exact location: not known.
2. The factory started operating in 1952.
3. The factory produces the following:
(a Thread boring tools,
(b Thread cutters,
'(c Reayacrs, '
d Cutters,
e Circular saw cutters,
f Sundry cutting tools,
The value of production in 1953 was about 12 to 14 LI. Forints.
,
It is planned to increase production, because there is brily one
other factory in Huncary producing cutting tools (Forzacsolo
SzerszalAgyar in MUTEST.
The number of employees is about 130-150.
It is difficult to find sufficient labour for_ _the planned
expansion, because there are too few skilled tradesmen-in T1EKESCSABA.
5. ? There are many bottlenecks, among which are the following: ,
(a)
Lack of sufficient machine-tools. The machine-tools in.
use are?of-nntiquated design and in bad condition.
(b) Lack of measuring tools and instruments.
(c) Lack of steel of a quality suitable for producing high
duty tools. (This applies to all steels in Hungary in
general. Such quantities of better quality steel as are
made, are allocated to the lare concerns, especially those
producing armaments).
6. The concern is subordinate to the Directorate of Mechanical
- Engineering in the Ministry of Metallurgy and Mechanical Engineering.
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SECRFT 30ili
U S
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HUNGARY
Economic
CUTTING TOOLS GENERAL).
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1. Cutting tools (thread boring tools, thread cutters, reamers, circular
saw cutters and sundry cutters) are produced for:-
(a) Civil needs by:-
)
FORGACSOLOSZERSZAMOK GYAR VALLALAT (Cutting Tools
Factory Enterprise), BUDAPEST.
(ii) BEKESCSABAI FORGACSOLO SZERSZAMOK GYARA (Cutting Tools
Factory,) BEKESCSARA.
The above plants are the only ones permitted to produce these tools for
civil destinations. Supplies of high duty steel are so inadequate and of such
inferior -quality, that there is a desperate shortage of cutting tools.
(b) Armaments factories by:
DANUVIA FINOMDaCHANIKAI-- ES KESZULEKGYAR (DANUVIA Precision
Tools and Appliances Factory), BUDAPEST
This factory was formerly called DANUVIA FEGYVER - ES .
LOSZER GYAR (DANUVIA Arms and Ammunition Factory). In 1950
civil production was removed to 132/138 Reitter Ferenc-utea,
BUDAPEST XIII, where the FORGACSOLO SZERSZAMOK GYAR VALLALAT
was set up. The best machine-tools were retained by the
DANUVIA Factory.
(ii) KOZFONTI SZERSZAM - ES KESZULEK GYAR (Central Tools and
Appliances Factory.)
The location is not known. This factory was set up
in 1952/3. .
(iii) SZEKESFEHERVARI SZERSZAM - ES SZERSZAMGEPGYAR (Tools and
Machine-Tools Factory) SZEKESFEHERVAR.
Produces tools and appliances and machine-tools of
simple deign for armaments factories.
(iv) GYORI S7PRSZA1VIGYAR (Tools Factory), GYM:.
Producee tOols and equipment for armaments factories.
Set up at the end of 1952 with machine tools withdrawn
from GYOR Wagon Works.
These four plants are subordinate to Directorates I and II in the Ministry
of Metallurgy and Mechanical Engineering.
2. The reasons for separating the factories producing cutting tools for
military destinations from those producing for civil requirements were as follows;
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(a)' Secuility in all its aspects.
(b)-? Shortage of 'materials:
As supplies of high duty steel have always been .insufficient,
it was wished to satisfy the requirements of armaments factories
regardless of civil needs. Ferenc BIRO, the Deputy-Minister
responsible for armaments, therefore insisted that separate factories
be set up, as this would make it easier for him to obtain all the
semi-finished products required.
(c) Quality.
Supplies of high duty steel of satisfactory quality are even
more difficult to come by. By separating military production from
civil production it is possible to divert all available good
quality steel to the armaments factories.
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to.
A
HUNGARY
Economic
FORGAC SOLO SZEASZAMOK GYARA VALLALAT
Cutting Tool Factory Enterpri;j7
Abbreviated name: FORSZ
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Street address: 132/138 Reitter Ferenc-utca, BUDAPEST XIII.
(According to telephone directory)
Telephone: 208-040
1. HISTORY
This concern hs been formed by .splitting ip a factory which .up to
1945 was known as DANUVIA FEGYVERLES LOSZhaGYAR (DANUVIA Arms and Ammunition
Factory) at 10/2C. Angol-utca, BUDAPEST XIV.
In 1945 it was converted. into a watch factory under the title
DANUVIA ORAGYAR.
In 1948 it was converted into a factory for producing cutting tools.
'Its title became DANUVIA SZERSZAMGYAR.
In 1950 it was split into the DANUVIA FINOMMECHANIKAI-ES KESZULEKGYAR
1"recision?Tools and Apparatus Factory), subordinate to Directorates I and II
i.e..armamentOin the Ministry of Metallurgy and Mechanical Engineering ,with
premises at 10/20 Angol-utca, BUDAPEST XIV, and a civil tools factory, the
FORGACSOLO SZERSZAMOK GYARA, with prethises at 132/138 Reitter Ferenc-utca, BUDAPEST
XIII and. (according to the telephone directory) with a branch at 16 /18 Dohany-
utca, BUDAPEST X.
2. - LOCATION
Not known, apart from the address.
3. PRODUCTION
The range of products comprises all kinds of standard cutting tools (no
drills).
The value of production in 1953 was about 60-65 m. Forints p.a.
? The plant is considered important because it is the only one in Hungary
producing standard cutting tools on a large scale. (There is a factory at
BEKESCSABA which also produces cutting tools but in small quantities. By a
ministerial decree no other factory apart from these two, is permitted to
manufacture -standard cutting tools, not even for the use of its own shops,
4. MATERIALS
Supplies of materials for tool making are insufficient and irregular.
There is a perpetual shortage and the factory is finding it difficult to _fulfil its
plan.
,In May/July 1953 the situation wa;so bad that work was at a standstill and
?it looked as if the plant would have to close down altogether. At the last moment
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some material arrived from the U.S.S.R? but its quality was so inferior that it
was necessary to seek permission from the Ministry to depart from the specifica-
tions prescribed for standard cutting tools.
5. DESTINATIONS OF PRODUCTS
All of the factory's production is delivered to the Hungarian organisation
' trading in and distributing special steels and tools (NEMESACEL-ES-S7TIRSZAMERTE-
. KESITO VALLALAT). Allocations of tools to all. civil users are made only by this
enterprise. For military destinations the factory supplies at the end of 1952
and beginning of 1553 small quantities of Gutting tools. But this was only for
a short time because new concerns, were set up for producing cutting tools for
the factories engaged on armaments production.
As far as is known, there are no exports.
6. TRANSPORT
No information on these subjects is available.
7. POViER
8. LABOUR,
The number of employees is about 1,000 to 1,200.
9, PLANT EQUIPMENT
The machine-tools are old and in bad condition. They are ?the residue of.
machine-tools left after the DANUVIA Precision Tool Factory had picked out the best
for its own plant producing tools for armaments factories. Some of the machine-
tools originate from five to six small- Workshops which have been nationalised. A''
few new units have been acquired since 1950.
There is a testing room and a laboratory, both of which are poorly
equipped and incomplete.
10 QUALITY CONTROL
(a) Quality control is carried out by an organisation consisting
' of 120 inspectors, of whom 80% are factory workers trained for
the job.
(b) Quality control in this factoryAs faced with a difficult
problem arising from the poor quality of the steel used.
In particular it proved impossible to manufacture satisfac-
tory tools with the Russian steel mentioned in Para. 4.
11, SERVICES
No information available.
12 BOTTLENECKS
Bottlenecks have arisen from the following causes:
(a) Irregularity of supplies 'of steel,
(b) Unsuitable quality of steels..
(c) Poor ?condition of machine-tools, and the resulting lack of precision.
(d) Lack of sufficient workers, as wages are law owing to shortages
in raw materials. -
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(e) Underproduction in small cutting tools and overproduction in
large sizes. (This is the result of a continual scramble. to
fulfil the plan and thereby increase pay-packets, by prOducing
large tools, which have to be stored for lackof demand,
and neglecting the production-of small tools, for which the
demand cannot be satisfied.)
13. SECURITY'
No information available.
14. ORGANISATION '
(a) The factory is subordinate to the Directorate for Mechanical
Engineering in the Ministry of Metallurgy and Mechanical
Engineering.
(b) The leader of. quality control is Laszlo SIMON, an engineer
who formerly worked in the Institute of quality Control. /
No other identities are known.
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