INTELLIGENCE MEMORANDUM THE KAMA TRUCK COMPLEX: A PROGRESS REPORT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001700040004-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 26
• Document Creation Date: December 20, 2016
• Document Release Date: March 27, 2006
• Sequence Number: 4
• Publication Date: August 1, 1972
• Content Type: IM

 AApidflj. 06/04/19 :CIA-R TORO I700040 ~
Secret
DIRECTORATE OF
INTELLIGENCE
Intelligence Memorandum
The Kama Truck Complex. A Progress Report
Secret
ER IM 72-121
August 1972
Copy N2 83
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CONTENTS
Page
Summary and Conclusions . . . . . . . . . . . 1
Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Location . . . . . . . . . . . . . . . . 2
Construction Organization . . . . . . . . . . . 2
Size . . . . . . . . . . . . . . . . . . . 2
Construction Timetable and Cost . . . . . . . . . . . 5
Description of Facilities and Status of Construction . . . . . . . . 7
Manufacturing Facilities . . . . . . . . . . . . 7
Housing . . . . . . . . . . . . . . . .10
Central Heat and Power Station . . . . . . . . 11
Building Materials Fabrication Area . . . . . . 13
Construction Support Area . . . . . . . . . . . . . . . . . 13
Machinery and Equipment . . . . . . . . . . . . . . . . . . 14
Soviet Interest in Foreign Assistance . . . . . . . . . . . 14
Competition in the West for Sales to Kama . . . . . . 15
Soviet Equipment Needs . . . . . . . . . . . 16
Signed Contracts to Date . . . . . . . . . . . . . . 19
Potential for Future US Sales . . . . . . . . . . . . . . . . 20
2. USSR ama ruc omp ex, ro uc ion an s ,
3. USSR: Kama Truck Complex, Ancillary Facilities . . . ? . . ?12
4. USSR: Status of Equipment and Technology for Kama . . . . . . 17
Illustrations
The Kama Truck . . . . . . . . . . . . . . Frontispiece
The Kama Truck Complex . . . 3
Assembly Yard for Roof Sections at the Kama Engine
Plant, Fourth Quarter 1971 . . . . . . . . . 6
Installing Roof Sections on the Kama Engine
Plant, First Quarter 1972 . . . . . . . 6
Tooling and Repair Plant, First Quarter 1972 . . . . . . 7
Gray and Malleable Iron Foundry, Mid-1972 . . . . ... . 9
Model of Part of Housing Area for Kama Truck Complex
at Naberezhnyye Chelny (Area Fl' . . . . . . . . . . 11
Construction of a Portion of Housing Area Shown
in Model Above, January 1972 . . . . . . . . . . . . . . . . 11
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CENTRAL INTELLIGENCE AGENCY
Directorate of Intelligence
August 1972
INTELLIGENCE MEMORANDUM
THE KAMA TRUCK COMPLEX:
A PROGRESS REPORT
Summary and Conclusions
I. In 1969 the Soviet Union announced plans to build a
manufacturing complex on the Kama River to produce 150,000 medium
to heavy trucks annually plus an additional 100,000 engines. This would
be roughly equivalent to the combined production of all heavy truck plants
in the United States. The facility was scheduled to go into production in
1974. However, it appears to be several months behind schedule.
2. The Kama Complex, located about 600 miles east of Moscow,
will consist of six separate manufacturing plants with extensive support
facilities. Housing construction got under way in late 1969. Erection of
manufacturing facilities was begun in June 1970, but it was mid-1971 before
most of the major structures were started. Construction is proceeding
briskly, but reportedly less than 30% of it has been completed. Slippage
in construction schedules, coupled with delays in equipment procurement,
suggests that the complex may not start large-scale production until well
into 1975. Moreover, production at full capacity will not be accomplished
until some years later.
3. Initially the Soviets envisioned contracting with a large truck
building firm in the United States, Western Europe, or Japan to plan and
install equipment for the entire project. However, when negotiations with
Mack Trucks, Inc. collapsed in September 1971, the Soviets abandoned this
approach. They are now enlisting Western technical assistance on a
plant-by-plant basis.
4. The design plan for the Kama Complex depends heavily on
machinery and technology '-o be purchased from the West. These purchases
could amount to more than $700 million, and the US share might exceed
Note: This memorandum was prepared by the Office of Economic
Research.
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$200 million. The Soviets have already signed contracts with Western firms
totaling $62 million, of which $22 million, or 35%, is with US firms.
Location
5. The site of the truck complex is near Naberezhnyye Chelny, a
city of 30,000 people about 600 miles east of Moscow on the south bank
of the Kama River (see the map). It is close to the power resources of
the Volga region and the motor vehicle centers of Tol'yatti, Gor'kiy, and
Ul'yanovsk.
Construction Organization
6. The Kama Hydroelectric Power Station Construction
Organization, which had been building the Nizhnekamsk hydroelectric
station at Naberezhnyye Chelny,(1) was i iected to be the general
contractor. The entire organization, with its experienced workers,
equipment, and sources of material was immediately available for
construction of the truck complex - thus saving months in getting work
under way. Numerous other construction organizations, including some from
Moscow and Leningrad, have been brought in as subcontractors.
i. The manufacturing complex and its support facilities for
production of construction materials, workers' housing, and various service
industries will cover an area of more than 38 square miles (sq. mi.), roughly
50% larger than Arlington County, Virginia. The six major production plants
will occupy 30 milli on square feet (s q. ft.) of floors ace in an area of
approximately 2.6 sq. mi.
The complex will contain
some 75 miles of railroads and sidings, 155 miles of roads and streets, and
620 miles of pipeline; moreover, some double-tracking of mainline railroads
and improvements to highways serving the area will be required.
8. Under market conditions prevailing in the developed West,
automotive production facilities are usually decentralized, as in the case
of Ford truck production. As a result, the Soviet decision to construct
all of the manufacturing facilities at one facility rather than having
components manufactured at diverse locations and shipped to a central point
for assembly, and of building all of the trucks at one location rather than
.4 two or more smaller plants, has been questioned
1. Little fir no work has been done on the hydroelectric project since 1969.
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The Kama Truck Complex
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The plan does not, however, appear unreasonable in light of conditions
that exist in the Soviet Union - notably, the difficulty of assuring uniform
quality and timely deliveries of components from suppliers. For this and
other reasons unique to the Soviet planned economy, there is no doubt
merit in having all operations under one central management in one central
location.
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Construction Timetable and Cost
9. The decision to build the Kama Truck Complex at Naberezhnyye
Chelny was announced in October 1969, at which time the target date
for starting production of trucks was given as 1974. Construction of housing,
transportation facilities, and contractor's camp was started almost
immediately, and work on the Tooling and Repair Plant and the Grey Iron
Foundry got under way in 1970. Although the Soviets continue to give
1974 as the date for start-up of production, it is becoming more and more
apparent that this schedule will not be met. Construction of most of the
major buildii.gr did not get started until 1971, and some are just now getting
under way. Furthermore, delays in contracting for engineering services and
for tool and equipment purchases as well as anticipated construction
problems will undoubtedly cause additional delays. In view of this and the
considerably larger size of the complex, it is probable that slippage in the
construction schedule for the Kama project will equal or exceed the
approximate one year slippage that occurred in construction of the Tol'yatti
automobile plant.
10. The Soviets have estimated that 3 billion rubles will be invested
in the Kama Truck Complex. Approximately half of the investment will
go into equipment and the balance into construction of buildings and
facilities, including housing, transportation, utility systems, a large central
heating and electric power station, and installation of equipment. It would
cost an estimated $4 billion to $5 billion to duplicate this facility in the
United States.
11. During the first ten days of December 1971 the daily volume
of construction and installation work was reported to have reached one
million rubles - equivalent to the maximum daily rate reached at Tol'yatti
during construction of the Volga Automobile Plant. At Kama, however,
daily construction rates are scheduled to reach 1.4 million or 1.5 million
rubles; construction must reach that tempo if the complex is to start
production on schedule. The prefabrication of building components in
assembly yards is one of the techniques being used extensively to speed
construction as well as to reduce costs. Complete steel truss roof sections
measuring 79 feet by 39 feet are being fabricated in assembly yards and
moved on rails to the building site where they are lifted into place by
means of cranes (see the photographs). A total of about 10.8 million sq. ft.
of roof for the Engine Plant, the Pressing and Stamping Plant, and the
Assembly Plant are being constructed in this manner.
12. At the end of 1971, about 240 million rubles of construction
had been accomplished - about 16% of the total. The construction plan
for 1972 calls for 400 million rubles, an additional 27% of the total, which
will include 120 million rubles for housing and urban facilities.
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Assembly Yard for Roof Sections at the Kama Engine Plant, Fourth Quarter 1971.
-OLa,,.11g nuv, Deczions on the 4a i ~~,~,t
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Description of Facilities and Status of Construction
Manufacturing Facilities (Area A)
13. The manufacturing complex will consist of six production
facilities or plants: Tooling and Repair; Foundry; Assembly; Pressing and
Stamping; Engine; and Forging. (For the size, starting dates, and current
status of construction, see Table 2.)
14. The Tooling and Repair Plant is a duplicate of the one built at
the Volga Automobile Plant in Tol'yatti. It was the first plant to be started
and is scheduled to go into partial operation at the end of this year.
Construction appears to be a month or two behind the construction schedule
of the similar building at Tol'yatti. Nevertheless, it is proceeding rapidly
enough so that part of the plant could go into production by the end
of the year if equipment is available.
15. The Foundry is a large complex occupying 0.8 sq. mi. It will
consist of four major buildings for production of grey and malleable iron,
steel, nonferrous metals, and precision castings, with a total roof area of
3.7 million sq. ft. These are two-story buildings providing a total floor area
of over 7 million sq. ft. Ancillary buildings and support facilities add an
additional 2 million sq. ft. Construction of the gray and malleable iron
casting building started in 1970, but only about 15% of its roof is in place.
Tooling and Repair Plant, First Quarter 1972.
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 USSR: Kama Truck Complex, Production Plants
Roof Area
Estimated Current Construction Status
(Percent Complete)
Length
(Feet)
Width
(Feet)
(Thousand
!!are Feet'
Construction
Began
Earth-
work
Foundation
C
l
R
f
o
umns
oo
Tooling and Repair (A-3)
Main production building
1,535
650
998
Jun 1970
95
95
90
75
Administration/service
1,6.S
118
191
Jun 1970
100
100
100
75
Foundry (A-4)
Gray and malleable iron
2,347
792
1,859
Sep 1970
90
45
25
15
Steel
950
556
528
Late 1971
90
25
0
0
Nonferrous
915
714
653
Early 1972
25
0
0
0
Precision casting
950
674
640
0
0
0
0
Other (nu;nerons structures)
-
--
2,000
Late 1971
20
0
0
0
Pressing and Stamping (A-5)
Main production building
2,298
1,161
2,668
May 1971
80
50
20
15
Administration/service
472
157
74
--
0
0
0
0
Other
-
--
123
--
0
0
0
0
Assemblya (A-6)
Main production building
3,780
1,258
4,755
Jun 1971
80
50
25
20
Enginea (A-7)
Main production building
3,150
1,191
3,752
May 1971
80
70
65
35
Forging (A-8)
S large buildings
Aug 71
Some
Some
Some
0
a. These plants also will have administration/service buildings and probably other ancillary facilities, construction of which has not started and
details on which are not available.
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An appreciable amount of foundation work has been accomplished on the
steel casting building, and earth moving has started for the non-ferrous
casting building.
Gray and Malleable Iron Foundry, Mid-1972.
16. The Assembly Plant, with a roof area of 4.8 million sq. ft., will
be the final consumer of the output of each of the other plants with the
exception of the Engine Plant, which will produce diesel engines for other
Soviet trucks as well as the Kama trucks. The prefabrication yard for roof
sections of this building went into operation in late February.
17. The main production building of the Pressing and Stamping Plant
will be a large single-story building with a partial basement. It will be
connected to the Assembly Plant by two galleries for conveying assembled
chassis and cabs. There will also be an administrative/service building, a
paint preparation building, and a scrap baling facility. Most of the roof
will be prefabricated in the nearby assembly yard, which started production
in April. However, two bays which are wider than the prefabricated units -
98 feet instead of 79 feet - are being constructed in place.
18. The Engine Plant will have a roof area of about 3.8 million sq. ft.
Foundations are under construction and about 35% of the plant is roofed.
One roof prefabrication yard has been in operation since October 1971
and a second is believed to be under construction.
19- the Forging Plant will consist of
five large buildings. Although its location is not definitely known, Area A-8
appears to be the logical choice. The status of construction is not known.
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Housing (Areas C, D, and E)
20. Soviet writers claim that experience gained in building the Volga
Automobile Plant at Tol'yatti is being utilized at Kama. This appears to
be particularly true with respect to housing. At Tol'yatti, housing
construction had a low priority, and even now housing, cultural, and service
facilities are scarce. At Naberezhnyye Chelny, however, housing construction
was started immediately after the decision was made to build the truck
plant there, and it has continued at a relatively rapid rate (see the
photographs). Of tha 21.5 million sq. ft. of housing to be built by the
end of 1975, the following amounts were completed by the end of 1971:
Year
Million Square
Feet of Useful
Space
Apartment
Units
Percent of
1975 Total
1969
0.3
600
1.4
1970
1.1
2,200
5.1
1971
2.6
5,200
12.1
Total
4.0
8,000
18.6
The plan for 1972 calls for 3.2 million sq. ft. (6,400 apartments) to be
built. In addition, urban facilities such as schools, kindergartens, stores,
movie houses, and other public buildings are being built.
21. Soviet correspondents assert that, although a few barracks-type
structures are being built, most of the housing structures are apartment
buildings and that workers are not living in tents as they have at most
previous large construction projects in the USSR. Nevertheless, there is a
serious shortage of housing for the 50,000 construction workers drawn from
all parts of the USSR. Apartments are furnished with cots and used like
barracks, thousands of trailers have been brought in and located near the
construction areas, and many workers are being accommodated in
neighboring villages.
22. Although the demand for housing has been increasing at a
relatively continuous rate, housing usually is not finished until the end of
the year. In each of the years 1970 and 1971, at least one-half of the
new housing constructed was put into service in December. Furthermore,
in the rush to fulfill annual plans, buildings are frequently accepted with
serious deficiencies.
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Model of Part of Housing Area for Kama Truck Complex at Naberezhnyye Chclny
(Area E).
111-T
Construction of a Portion o1' Housing Area Shown in Model Above, January 1972.
Central Heat and Power Station (Area A-2)
23. Plans for a 520,000 kilowatt central heat and power station were
completed in March 1970 and construction was started in May (see
Table 3). However, the buildings are still far from finished. The main boiler
house has about 15% of its roof in place and the turbine room about 25%.
A second boiler house with six boilers, four of which are already in place
and operating, is being constructed in the same area.
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USSR: Kama Truck Complex, Ancillary Facilities
Etimated Current Construction Status
(Percei.t Complete)
Construction
Began
Earthwork
Foundations
Columns
W
ll
a
s
Roof
Heat and Power Station (A-2)
Turbine roem
May 1970
95
60
40
15
25
Boiler house
May 1970
95
70
30
25
15
Auxiliary boiler house
May 1970
100
100
100
80
80
Building Materials Fabricating
Area (Area B)
Housing components plant
First section
Early 1970
100
100
100
100
100
Storage yard
Early 1970
100
100
10G
N
A
N
A
Second section
Late 1971
95
50
0
.
.
0
.
.
0
Precast concrete plant
Woodworking facility
Early 1970
late 1970
Metalworking facility
Late 1970
Construction Support Area (A-1)
(permanent receiving, storage,
and support)
Engineering Mid-1970
Warehouses Mid-1970
Vehicle storage and maintenance Mid-1970
Concrete mixing plant Late 1970
Area substantially complete.
Total Plan by 1975 Total Plan
(Million Square Feet) (Miles) Million Square Feet
Miles
Percent
Housing (Areas C, D, and E)
21
5
Railroads and siding
.
--
75
52
19
69
Highways and streets
--
155
45
29
Pipelines
--
620
72
12
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Building Materials Fabrication Area (Area B)
24. One of the first undertakings in connection with the Kama project
was the onstru-tion of facilities to fabricate components for use in
construction of the other structures )f the complex. These facilities, which
include a precast concrete plant, a facility for fabricating ',ousing
components, a wood processing area, and a structural steel fabricating area,
occupy, a 2 sq. mi. area located about four miles west of the truck
manufacturing site.
25. The precast concrete plant covers an area of more than 0.2 sq.
mi. and includes a number of buildings, concrete mixers, conveyors, cranes,
and railroad sidings. The plant went into production in 1971 even though
parts of it are still unfinished.
26. The first section of the plant for fabricating wall, floor, and ceiling
panels and structural components for housing units has a capacity of 2,500
apartment units per year. It was scheduled to go into production in 1971
but did not start production until mid-1972. Nevertheless, the second
section of the plant, which will double the capacity, is under construction.
27. There are two other completed buildings in this area, one with
a roof area of 350,000 sq. ft. and the other with a roof area of 270,000
sq. ft., which are believed to house the wood processing facility and the
structural steel fabrication shop, iespectively.
Construction Support Area (Area A-1)
28. The Construction Support Area was started in 1970 and
reportedly occupies about 2 sq. mi. in the southwest corner of the
manufacturing area. It contains buildings to house engineering, shop and
fabrication facilities, warehousing, and vehicle storage and maintenance. It
has seyeral miles of railroad sidings and service roads, a number of large
petroleum storage tanks, a concrete mixing plant,(2) and storage yards
equipped with large cranes for handling materials. It is believed that this
facility will be used as the permanent receiving, storage, and production
support area for the manufacturing complex when construction is finished.
2. This mixing plant with a capacity of' 2,500 cubic meters per day was only recently
completed. Prior to this, a plant of the same capacity that was originally built for
use on the Nizhnekamsk Dam provided concrete for tha Kama project.
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Machinery and Equipment
Soviet Interest in Foreign Assistance
29. The USSR is planning to rely heavily on the automotive industries
in the West(3) to equip the Kama truck complex in order to get the most
advanced machinery and technology available. In addition, the Soviets will
depend heavily on Western firms to design tie plant layouts for many parts
of the Kama complex, to specify equipment and suppliers, and to coordinate
the procurement and installation of Western-built machinery. Contracts for
such technical assistance already have been made with Swindell-Dressler in
the United States for the Foundry and Renault of France for the Engine
Plant. Other firms in France, the United States, and Japan are bidding for
similar technical assistance contracts for other parts of the Kama facility.
.overall responsibility for the design and putting into operation of the Kama
complex rests with the Ministry of the Autoi.iotive Industry.
30. The machine building industry of the USSR is to supply nearly
one-third of the production equipment for Kama such as general-purpose
machine tools and other standard types of nonspecialized machinery. Soviet
machinery plants appear to be unable to supply the large amounts of highly
automated machinery needed for the mass production of heavy truck
components and the computerized warehousing of parts.
31. The present policy of enlisting Western technical assistance on
a plant-by-plant basis is in sharp contrast to the role Soviet planners
envisioned initially for Western participation. For more than three years
the Soviets sought a large truck building firm in the United States, Western
Europe, or Japan to coordinate and manage the planning and installation
of equipment for the entire project. Mack Trucks, Inc., the last firm to
be contacted, agreed to assume broad responsibilities for management and
engineering for the complex. However, in mid-September 1971, Mack
canceled its participation, recognizing that the size and complexity of the
Kama project and the extent of technical and financial assistance required
were too great for any single firm to undertake. With the collapse of the
Mack negotiations and the mounting pressures for completion of the project
by 1974, the Soviets decided to forgo further attempts to get a major
assistance contract with a single Western firm.
32. The Soviets a!sc have abandoned their efforts to purchase from
the West a modern truck and engine design. The Likhachev Truck
Plant (ZIL) in Moscow has built a prototype truck for Kama (see
frontispiece), and the Yaroslav'l Engine Plant has designed a diesel engine
3. The West is defined to include the United States, Western Europe, and Japan.
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to power it. The decision by the Soviets to use their own designs, while
not satisfactory in all respects, represents the only workable alternative to
the direct purchase of design technology in the West. Although the Kama
truck is similar in appearance to heavy transport t: ticks in general use on
US highways, it is neither as well designed nor as well built.
33. Soviet efforts to import truck technology from the United States
no longer are hindered by US export restrictions that until recently
prevented the sale of equipment for use in truck plants in the USSR. Since
the administration's decision in mid-1971 to permit US firms to sell such
equipment for the Kama complex, most of the applications for export
licenses - which now exceed $1.5 billion - have been approved. Many of
the license applications are greatly over-estimated in value, however, and
a number are duplicative in that they represent competitive bids.
Competition in the West for Sales to Kama
34. Strong competition exists between firms in Western Europe,
Japan, and the United States for sales of machinery, equipment, and
technology for the Kama project, and Western Europe stands the best chance
to gain the largest share of Soviet orders. Long-term credits are available
in West European countries at interest rates of about 6%, and prices are
generally lower than in the United States. Other advantages include closer
proximity (which implies savings in transport costs), broader trading
experience in the USSR, and financial support to suppliers by the European
gover:;ments. In the United States, firms trading with the USSR have not
yet been authorized Export-Import Bank credits or guarantees to help
finance and support sales.(4)
35. France holds a particularly favorable position among West
European countries because of its close technical ties with the USSR in
many areas, its liberal credit policy, and because Renault, a partially
government-owned firm, already has an important contract for engineering
services to Kama. The French government thus far has extended credits
of $216 million to the USSR to accelerate purchases of machinery for Kama
in France.
36. West Gc.-many, which sold more than $100 million worth of
machinery for the Tol'yatti plant, and Italy, which sold about $300 million
4. When and if Export-Import Bank credits are forthcoming, US suppliers will be
on a more competitive basis with Western Europe and Japan because the interest rate
of 6% will reduce the overall interest on financing to a rate close to that of other
countries. The recent devaluation of the dollar also has to some extent offset the price
disadvantage to US firms on. machinery sales.
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North, are confident thai they will receive substantial orders. Italy has
already extended credits of $129 million to finance sales for Kama.
Elsewhere in Western Europe, the United Kingdom, Switzerland, Belgium,
and Sweden will supply some equipment.
37. Japan could gain a sizable share of the Kama orders. Japanese
tool builders recently won the competition for a major share of the
equipment for the Pressing and Stamping Plant and are making a strong
bid as a major supplier of equipment for the Forging Plant.
38. Although US suppliers are handicapped by higher prices and
interest rates, they look forward to capturing a large part of the market
because of an edge in technology. The position of US firms as suppliers
of equipment to Kama is enhanced by the fact that US firms can probably
respond to large orders more rapidly than West European and Japanese
firms, and the Soviets consider US automotive production machinery to
be the finest in the world. The Soviets have shown particular interest in
US designs and production technology for rear axle assemblies. The United
States also may be best suited to supply equipment for producing engines,
gears, and transmissions.
Soviet Equipment Needs
39. The USSR has not released any data on the planned costs of
investment in machinery and equipment for the Kama truck plant. However,
ii. is estimated that the machinery and equipment needed to outfit the six
major facilities at Kama would cost close to $1 billion.(5) Machinery for
the Engine Plant alone could cost close to $0.5 billion, or nearly one-half
of the total. Estimates of the dollar value of the machinery and equipment
component of each of the major production facilities are given in Table 4.
Equipment for parts of the complex other than that included in the six
major facilities - that is, ancillary facilities, most of which the Soviets
themselves will supply - may total an additional 500 million rubles.
40. The potential cost of Soviet purchases of machinery and
technology in the West is difficult to estimate but could amount to more
than $700 million, or about 75% of the total machinery cost.(6) Only a
small fraction of this amount has been actually spent; contracts concluded
to date with Western firms account for only about 6% of the estimated
total cost of the machinery and equipment needed to outfit Kama.
5. Based on US costs. To the extent that the USSR supplies its own equipment or
purchases machinery in Eastern Europe or elsewhere in the West, the total cost of
outfitting Kama could be substantially less.
6. Based on the experience of the West in supplying equipment and technology for
the. Tol'yatti plant.
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USSR: Status of Equipment and Technology for Kamaa
Million US $
Signed Contra';ts in the West
Estimated Value
Signed Contracts
f M
hi
as Percent
o
ac
nery
Machinery
Plant
b
R
i
of Estimated
egu
red
Engineering
and Equipment
C
ountry
Firm Total Value
Tooling and Repair
13
I
Switzerland
Foundry
250
9
United States
Swindell-
Dressler
Engine, Gear, and
Transmission
450
9
France
Renault
13.5
United States
Gleason)
Forging
40
Pressing and
80
_
20
-
Stamping
Japan
Ishikawajima-
10.
Japan
Aida
Assembly
150
Total
983
18
44.5
a. As of 1 July 1972.
b. Estimates for the Foundry, Forge, and Pressing and Stamping Plants are based on US bids; estima`- -- for the other plants are based on US analogy.
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41. The Tooling and Re; air Plant will require the least assistance from
abroac. This plant, essentially a copy of the counterpart fac!'gty designed
by FIAT for the Volga Automobile Plant (VAZ) at Tol'yatti, requires, for
the most part, only standardized machinery of a type that can be supplied
by the USSR or, by machinery firms in Eastern Europe. Czechoslovakia,
which has contracted to supply $20 million worth of equipment to Kama
and which manufactures good-quality general-purpose machine tools, may
supply some of the equipment for this plant.
42. The Foundry will be based on US design and will be outfitted
mainly, if not entirely, with machinery and equipment purchased in the
West. The Soviets desire a. very modern, highly automated facility
comparable to the new Ford foundry at Flat Rock, Michigan. However,
the Soviet foundry will be much larger, with nine pouring lines for castings
of gray and malleable iron, compared with five lines at Ford. Unlike the
Ford foundry, Kama will have additional lines for casting steel and other
alloys.
43. The Engine Plant, the largest, most costly, and most complex
of the production facilities at Kama, is being designed by Renault of France.
This plant will build 250,000 engines per year, as well as transmissions
and differentials. Much of the specialized high volume production equipment
such as automatic transfer machine tool lines )nd conveyor systems probably
will be bought in the West.
44. The Pressing and Stamping Plant will consist of three sections:
the pressing and stamping operations proper, for the shaping of metal parts
for the truck chassis and truck cab; an assembly line; and a paint shop.
Most of the equipment will come from the West. Japan is supplying the
heavy press lines and the transfer presses. The smaller presses and equipment
for the paint shop very likely will be bought in Western Europe and the
United States.
45. The Forging Plant will produce components for engines, axles,
and steering mechanisms on nine lines. It is likely that Western technical
assistance will be sought to lay out this facility, and much of the equipment
is certain to be Western-made. One US firm has signed a protocol for
designing the forging plant and may receive the contract if it can overcome
Japanese competition.
46. The Assembly Plant apparently is still in an unsettled stage of
planning. The Soviets have not indicated whether they will seek Western
engineering assistance in laying out this facility, but much of the equipment
probably will be bought in the West, especially the conveyor systems and
automatic process control equipment.
18 4i9C1r1 Ft
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Signed Contri cts to Date
47. The Soviets thus far have signed contracts with Western ffi-ms
valued at $62 millicrn.(7) Of these contracts, $18 million or about 29%
represents purchases of engineering and technical services. About 35% of
the total value of contracts awarded represent contracts signed with US
firms.
48. In tl;'e United States, Swindell-Dressler, a division of Pulln:u,, Inc.
of Pittsburgh and a designer of the Ford foundry at Flat Rock signed
a contract in late 1971 for $9 million for designing the Foundry. [~:
49: Swindell-Dressler is uniquely qualified to engineer the Kama
Foundry because of the highly successful work the firm recently
accomplished for Ford. It designed and built the electric induction furnaces,
holding furnaces, and pouring lines which make up the heart of the casting
process. Swindell-Dressler also engineered the air cleanings stem and
performed other engineering services.
50. The Gleason Company, Rochester, New York, on 15 March 1972
became the first US firm to sign a contract to supply equipment to Kama.
Under a $13.5 million contract, Gleason will provide machinery for the
manufacture of axle gears, for which they possess virtually a world
monopoly.(8) Gleason will build 153 machines, including gear cutting,
finishing, and testing equipment. Most will be built in the United States,
but 14 units will be manufactured by Gleason's new plant in Belgium.
Deliveries are scheduled to be completed by mid-1973.
7. As this memorandum was being prepared for publication, an additional contract
for $1.8 million in forging equipment was signed by E.W. Bliss.
8. Minor competitors are Oerlikon of Switzerland and Klingelnberg of West Germany.
Oerlikon, however, uses a different tocth form that would not be compatible with the
gearing now being produced in the USSR by Gleason-type machinery. Klingelnberg
cannot meet Soviet delivery schedules for such large orders.
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51. In Western Europe, machine builders in Switzerland have
contracted to deliver $1 million worth of machine tools (jig boring
machines) to Kama in 1973 for use in the Tooling and Repair Plant. Renault
of France, which won the first major contract for Kama to be awarded
to a Western firm, is designing the Engine Plant for $9 million. This contract
covers engineering and consultant services only. Much of Renault's design
work probably is being done by the Saviem division of the firm, which
builds heavy trucks and diesel engines.
53. Japan already has gained a sizable portion of orders for the Kama
complex. Under a $30 million contract signed in February 1972, two
Japanese firms will supply heavy presses and stamping equipment.
Ishikawajima-Harima Heavy Industries will furnish six press lines at a total
cost of $20 million, and Aida will supply transfer presses valued at $10
million. Half of the equipment is to be delivered by May 1973, and final
shipments are to be concluded by May 1974.
Potential for Future US Sales
54. Future US sales of machinery and technology to Kama are
uncertain, because of the intense competition from West European and
Japanese firms, but could exceed $200 million. Swindell-Dressler, as designer
of the Kama foundry, hopes to sell large amounts of equipment and is
opening a sales office in Moscow. At a minimum the firm probably will
build the melting and holding furnaces valued at $24 million and related
equipment valued at $12 million. Other US firms who may supply foundry
equipment include Jervis Webb, conveyor systems; C.E. Cast, moulding lines
and core-making machinery; and National Engineering and the Jeffrey
Company, sand-moulding machines. Foundry equipment purchases in the
United States could exceed $100 million.
55. US firms may also become major suppliers of equipment for the
Engine Plant. Renault, the designer of this plant, has stated that it intends
to draw heavily on US firms for special technologies in which they excel
and which the Soviets particularly want to buy. Interest thus far has
centered on technology for machining crankshafts and production lines for
such engine components as pistons and fuel injectors. The Soviets also are
seeking to buy in the United States a production line for building
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transmissions which is an important part of the engine plant.
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