DEVELOPMENT OF A PETROCHEMICAL INDUSTRY IN EASTERN EUROPE

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• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R01141A002500030002-8
• Release Decision: RIPPUB
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• Document Page Count: 31
• Document Creation Date: December 27, 2016
• Document Release Date: August 13, 2013
• Sequence Number: 2
• Publication Date: August 1, 1962
• Content Type: REPORT

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?RFThENZLIAL
Economic Intelligence Report
N? 85
DEVELOPMENT OF A PETROCHEMICAL INDUSTRY
IN EASTERN EUROPE
CIA/RR ER 62-26
August 1962
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
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GROUP 1
Excluded from automatic
downgrading and
declassification
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CONFIDENTIAL
Economic Intelligence Report
DEVELOPMENT OF A PETROCHEMICAL INDUSTRY
IN EASTERN EUROPE
CIA/RR ER 62-26
WARNING
This material contains information affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, USC, Secs. 793 and 794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
CONFIDENTIAL
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CONTENTS
Summary
Page
1
I.
Introduction
3
II.
Significance of a Petrochemical Industry in the
European Satellites
3
III.
Production Goals
A.
General
4
B.
Goals in Individual Countries
5
1. Albania
5
2. Bulgaria
5
3. Czechoslovakia
5
4. East Germany
5
5. Hungary
7
6. Poland
7
7. Rumania
7
IV.
Supply of Raw Materials
8
A.
Sources
8
B.
Amounts and Current Status
9
1. Petroleum
9
2. Natural Gas
10
V. Production Centers
A. Location and Products
B. Status and Plans
VI. Sources of Technology and Equipment
A. Intra-Bloc Cooperation
B. Procurement from Western Sources
10
10
12
14
14
14
VII. Problems and Prospects 15
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APPENDIXES
Appendix A. Petrochemical Plants in the European
Satellites
Page
17
Table
Production of Nitrogen Fertilizer and Synthetic Rubber
in the European Satellites, 1960 and Planned for 1965 . 6
Illustrations
Figure 1. Chemicals from Petroleum and Natural Gas
(Chart) following page 2
Figure 2. European Satellites: Locations of Petro-
chemical Plants (Map) following page 8
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DEVELOPMENT OF A PETROCHEMICAL INDUSI.EY IN EASTERN EUROPE*
Summary
The plans formulated in 1958 for the expansion of the chemical in-
dustries of the European .Satellites** provide for the establishment of
a petrochemical*xx industry in these countries as the most economical
means of obtaining raw materials for the end products most stressed in
the plans -- chiefly plastics, synthetic rubber, synthetic fibers, and
fertilizers. Development of petrochemical production, in turn, will be
made possible by sharply increased imports of Soviet oil to be delivered
mostly by means of the highly publicized pipeline now being built from
the Soviet oilfields to Poland, East Germany, Czechoslovakia, and Hungary.
Each of these four countries is building a large refinery and asso-
ciated petrochemical facilities to process Soviet oil and also is build-
ing or expanding other plants utilizing petrochemical raw materials.
Bulgaria is building a refinery and petrochemical complex to process
Soviet oil obtained by sea. Rumania plans a widespread development of
its petrochemical industry on the basis of indigenous resources, and
Albania has scheduled one plant to use domestic oil or natural gas. As
an indication of the importance of petrochemicals in the production
plans of the Satellites, an amount equal to about 70 percent of the
total increase planned for nitrogen fertilizer between 1960 and 1965 is
to be produced from petrochemicals as well as more than 80 percent of
the increment in production of synthetic rubber.
In all the Satellites, planned investments in the petrochemical in-
dustry represent a sizable share of total investments planned for the
* The estimates and conclusions in this report represent the best
judgment of this Office as of 15 July 1962.
** Albania, Bulgaria, Czechoslovakia, East Germany, Hungary, Poland,
and Rumania. The term Satellites as used in this report refers to the
European Satellites.
xxx The term petrochemical, for which no universally accepted defini-
tion exists, is used in this report to refer to primary or basic
chemicals obtained from petroleum or natural gas, including principally
the olefins (mainly acetylene, ethylene, propylene, butylenes, and
butadiene); the aromatics (chiefly benzol, toluol, xylols, and naphtha-
lene); and one important inorganic chemical, ammonia. A more detailed
survey of chemicals derived from petroleum and natural gas is shown in
the chart, Figure 1, following p. 2.
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chemical industry. In execution of the investment plans, the Satel-
lites are relying heavily on aid from the USSR but also have found it
necessary to obtain technical aid and equipment from the West. One
major purchase from the West was technology and equipment for four
polyethylene plants to be supplied by the UK to Czechoslovakia, East
Germany, Poland, and Rumania.
Only Rumania is producing significant amounts of petrochemicals at
present. Czechoslovakia, which reportedly is now receiving Soviet oil
by pipeline and which has two petrochemical plants scheduled to start
operation this year, presumably will soon initiate petrochemical pro-
duction on a fairly large scale. East Germany and Hungary also may be
able to start production of petrochemicals in the near future. It is
doubtful that over-all plans for petrochemicals in the Satellites, which
in some cases are projected as much as 5 or 6 years beyond current plan
periods (which end in 1965), will be fulfilled on schedule. Neverthe-
less, the Satellite countries should make considerable progress by 1965
toward establishing a petrochemical base for a major part of their
chemical industries.
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EASTERN EUROPE
CHEMICALS FROM PETROLEUM AND NATURAL GAS"
RAW MATERIALS PRIMARY PRODUCTS
NATURAL GAS
PETROLEUM
DISTILLATES AND
RESIDUAL OILS
- INTERMEDIATE PRODUCTS - END PRODUCTS
AMMONIA SYNTHESIS OAS AMMONIA
PETROLEUM SYNTHESIS GAS . METHANOL
Ille+CO)
ACETYLENE
ETHANE . CARBON BLACK
NATURAL GAS LIQUIDS
AND REFINERY LPG* ? ?
? nu survey by no means exhausts the possibilities
for either products or production methods
?? Liquefied petroleum gases.
ETHYLENE
PROPYLENE
BUTYLENES
BUTADIENE
BENZOL
N.
TOLUOL
NAPHTHALENE,
NXYLOLS
VINYL CHLORIDE,
ACRYLONITRILE
TETRACHLORETHYLENE
VINYL ACETYLENE
ETHYLENE OXIDE
CHLOROETHYLENE
ETHYL ALCOHOL
UREA:
FORMALDEHYDE
ETHYLENE GLYCOL
ACETALDEHYDE
FLUOROETHANES
ISOPROPYL ALCOHOL ACETONE
GLYCERINE
STYRENE
HEXAMETHYLENEDIAMINE
CYCLOHEXANE
PHENOL.
. .NITROBENZOL
- - CHLOROBENZOLS
MALEIC ANHYDRIDE
, PHTHALIC ANHYDRIDE
FERTILIZERS
UREA PLASTICS
ANTIFREEZE
SOLVENTS
VINYL PLASTICS
NITRILE RUBBER: ORLON FIBER
SOLVENTS, WEED KILLER
NEOPRENE RUBBER
RUBBER. PLASTICS. COATINGS
ANTIFREEZE; PLASTICS, FIBERS, FILMS
ACRYLATE PLASTICS
POLYETHYLENE PLASTIC
SOLVENTS
ACETIC ACID, ACETIC ANHYDRIDE
REFRIGERANTS: AEROSOLS
SOLVENTS
POLYPROPYLENE PLASTIC
EXPLOSIVES; COATINGS
BUTYL RUBBER
POLYSTYRENE PLASTIC
OR-S RUBBER
ADIPIC ACID NYLON
CAPROLACTAM
:ANILINE .
TEREPHTHALIC ACID DIMETHYL TEREPHTHALATE
PHENOLIC PLASTICS: ADHESIVES
DYES
INSECTICIDES
. POLYESTER PLASTICS: COATINGS
EXPLOSIVES
PLASTICIZERS
_ DACRON FIBERS: FILM
?GiOUP 1
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I. Introduction
In mid-1958, soon after the announcement of the high-priority pro-
gram for chemicals in the Soviet Seven Year Plan (1959-65), Khrushchev
made a visit to East Germany during which both he and Ulbricht, the
East German Premier and First Secretary of the Socialist Unity (Com-
munist) Party, delivered major speeches which contained the first indi-
cation that the European Satellites also would expand their chemical
industries on a priority basis. Ulbricht, in particular, noted that
this expansion would include, as a basic feature, the establishment of
a petrochemical industry in the Satellites and that a pipeline would be
laid from the USSR to bring Soviet oil to those Satellites that do not
possess adequate domestic raw materials for such processing. The pipe-
line has thus been linked, from its inception, to the purpose of pro-
viding petrochemical raw materials, besides functioning as a source of
raw materials for fuels, lubricants, and other petroleum products.
Early in 1962 the first major section of the pipeline was completed.
Oil reportedly has started to flow to the new petrochemical center just
outside Bratislava in Czechoslovakia, marking a major step toward
realization of the goal of large-scale production of petrochemicals in
the Satellites.
II. Significance of a Petrochemical Industry in the European Satellites
The Sino-Soviet Bloc has lagged well behind the West in establish-
ing a petrochemical industry. In the USSR, production of petrochemicals
did not begin on a significant scale until the mid-1950's, and produc-
tion elsewhere in the Bloc has been almost nonexistent until very re-
cently. In the US, on the other hand, large-scale production began in
the 1930's and petrochemicals now account for about one-third of the
volume of production of basic chemicals. Production also is well estab-
lished in Western Europe and is expanding rapidly, and Japan, Australia,
and several countries of Latin America and South Asia have begun produc-
tion in this field.
It was decided to establish a petrochemical industry in the Satel-
lites mainly because petrochemicals constitute the only means of pro-
viding in sufficient quantities and sufficiently cheaply the raw ma-
terials needed for the manufacture of the end products most stressed
in the plans of the chemical industries of the various countries --
synthetic materials (rubber, fibers, and plastics) and chemical fer-
tilizers. It was recognized that production of these products in the
amounts called for in the plans would be prohibitively expensive if
based on either coal or agricultural products, the alternative raw
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materials. In Poland it has been estimated that synthetic materials
and fertilizers can be produced 30 to 24.4o percent more cheaply from
petrochemicals than from coal, and Soviet Party Secretary Kozlov, in
discussing the establishment of a petrochemical industry in East
Germany, stated that the use of oil would "lower costs of products
more than half." 1/* Factors responsible for the substantial savings
anticipated in both operating and capital costs include the lower cost
of producing and transporting petroleum and natural gas; the smaller
number of steps involved in chemical processing, which lowers both
the cost of installations and operating costs; increased possibilities
of using less expensive, open-air construction; reduced requirements
for electric power; and the higher productivity that can be achieved
in large-scale, highly automated plants.**
The importance of petrochemicals in the plans of the chemical in-
dustries of the Satellites is indicated by the share of investments
allocated to them during the current plan periods. In East Germany
the largest project of the chemical industry under the Seven Year Plan
(1959-65) is the petrochemical plant at Leuna, and the third largest --
which, nevertheless, is to account for investments equal to more than
10 percent of the total investments in the chemical industry during
the Seven Year Plan -- is the refinery and petrochemical plant at
Schwedt. 3/ In Poland, investments in the three large petrochemical
plants are scheduled to be equal to about 50 percent of the total in-
vestments planned for the chemical industry under the current Five
Year Plan (1961-65), although not all of the amount will be invested
during the plan period. The petrochemical plant at Plock is the larg-
est construction project of the chemical industry in Poland at pres-
ent. 4/ In Hungary, nearly two-thirds of investments in the chemical
industry during the current Five Year Plan (1961-65) will be devoted
to expanding production of chemical fertilizers, plastics, and syn-
thetic fibers, and inasmuch as most of this expansion will be on a
petrochemical base, it may be assumed that a large share of investments
is going directly or indirectly into the petrochemical industry. 5/
III. Production Goals
A. General
Although only Hungary and Rumania have published over-all goals
for production of petrochemicals, all the Satellites have published
** In East Germany it is estimated that productivity in the petro-
chemical industry will be at least 10 times productivity in the coal-
chemical industry, an advantage of special importance in view of the
expected decline in the East German labor force during the next few
years. 2/
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targets for some individual products or other information indicating the
importance of petrochemicals in the development of their chemical indus-
tries. The accompanying table,* for example, shows plans for production
of nitrogen fertilizer and synthetic rubber in 1965 and the percentage of
each to be produced on a petrochemical base, together with comparative
production in 1960. The amount of nitrogen fertilizer to be made from
petrochemicals in 1965 equals about 70 percent of the increase in output
planned for the 5 years; more than 80 percent of the increment in output
of synthetic rubber is to be based on petrochemicals.
B. Goals in Individual Countries
1. Albania
The goal for nitrogen fertilizer shown in the table is the
only target that Albania has announced for petrochemical production.
It is believed that this level of production is scheduled for 1965.
2. Bulgaria
Bulgaria has set goals for production of 60,000 tons**
of ethylene and 20,000 tons of propylene by 1963-64. Planned produc-
tion of 10,000 tons of polyethylene by 1964-65 will be based entirely
on petroleum-derived ethylene. Bulgaria also plans to produce 30,000
tons of synthetic rubber on a petrochemical base by 1967. 6/
3. Czechoslovakia
Czechoslbvakia, in addition to announcing goals of more
than 100,000 tons of ethylene and more than 50,000 tons of propylene
(presumably by 1965), has indicated that, whereas in 1958 the ratio of
coal to petrochemicals as chemical raw materials was greater than 95 to
5, in 1965 the shares will be about equal, with petrochemicals slightly
in the lead. Moreover, the demand for basic organic raw materials is
expected to be about five times as large in 1965 as in 1958. 7/
It. East Germany
The petrochemical industry will be relatively less impor-
tant in East Germany than in the other Satellites because of the mag-
nitude of and the increases planned for the coal-chemical industry.
East Germany has announced, however, that by 1965 all ethylene (100,000
tons, nearly three times current production), all propylene (16,000
tons), 90 percent of the xylols (about 28,000 of 31,000 tons), half
* The table follows on p. 6.
** Tonnages are given in metric tons throughout this report.
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Table
Production of Nitrogen Fertilizer and Synthetic Rubber in the European Satellites
1960 and Planned for 1965
Nitrogen Fertilizer a/
Synthetic Rubber
1960
1965 Plan
1960
1965 Plan
Thousand
Percent from
Thousand
Percent from
Thousand
Percent from
Thousand
Percent from
Country
Metric Tons
Petrochemicals
Metric Tons
Petrochemicals
Metric Tons
Petrochemicals
Metric Tons
Petrochemicals
Albania
0
0
231/
100
0
0
0
0
Bulgaria
84
o
267
o
o
o
30c/
100
Czechoslovakia
140
0
300
33
1
o
55
98
East Germany
334
0
386
o
86
o
105
o
Hungary
57
o
160
85
o
0
Negl.
0
Poland
270
12
464
32
20
0
45
33
Rumania
19
80
280
98
o
o
50
loo
Total
904
5
1,880
37
107
o
285
52
a. Nitrogen content.
b. Estimated; reported as 1110,000 tons of ammonium nitrate."
c. For 1967.
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the phenol (about 25,000 of 50,000 tons), and 26 percent of the benzol
(about 14,500 of 56,000 tons) will be produced from petroleum. All
these products, except about 17 percent of the ethylene, were made en-
tirely from coal in 1959. Production of naphthalene, ammonia, and
acetylene will continue to be based on coal, however. _Y The latter,
produced via calcium carbide, forms the basis for the bulk of East
German organic synthesis at present. It is considered economical in
East Germany to continue and even expand production of carbide, be-
cause electric power, required in large quantities for its manufacture,
is comparatively cheap in East Germany.
5. Hungary
Hungary has indicated that production of basic petro-
chemicals from oil is to reach 6o,00o tons by 1965 but has not speci-
fied what products are covered by this figure. In addition, production
of nitrogen fertilizer, which is to be 3-1/2 times as large in 1965 as
in 1959, is to be based largely on natural gas. About 95 percent of
the acetylene to be produced in 1965 is also to be obtained from natural
gas, and polyvinyl chloride plastic based on acetylene is to account
for more than one-third of all plastics produced in 1965 (about 12,000
of 33,000 tons). Petroleum-based polyethylene is to be produced at a
rate of about 10,000 tons per year after 1966. 9/
6. Poland
In Poland, 30 percent of all production of plastics, in-
cluding all polyethylene (10,000 tons), is to be based on petroleum
by 1965, and an additional 21 percent ()-i-0,000 of 60,000 tons of poly-
vinyl chloride) is to be based on acetylene from natural gas. Produc-
tion of synthetic phenol on a petrochemical-base is also to start by
that year, 10/ and part of the raw material for synthetic rubber is to
be obtained from petroleum.
7. Rumania
Rumanian plans call for production of primary synthetic
products* in 1965 to exceed 400,000 tons and for 93 percent of this
amount to be derived from petrochemicals, compared with 57 percent of
a total of less than 25,000 tons in 1959. Output of products based
on methane in 1965 is to be 14 times and output of products based on
petroleum 37 times the level of 1959. Petrochemicals are to provide
the starting materials for 68 percent of all plastics and 77 percent
of all synthetic fibers in 1965. (The output of these two groups of
* The products covered by this classification were not indicated in
the Rumanian statistics.
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products is to increase by factors of 14 and 53, respectively, by that
year.) Synthetic rubber, for which a target of 50,000 tons has been
set for 1965, will be produced entirely from petrochemicals. Products
based on petrochemicals will account for more than 22 percent of the
gross output of the Rumanian chemical industry in 1965. 11/
IV. Supply of Raw Materials
A. Sources
The backbone of the petrochemical industry of the Satellites
is the so-called "Friendship" pipeline being laid from the Soviet oil-
fields near Kuybyshev to Czechoslovakia, Hungary, Poland, and East
Germany (see the map, Figure 2*). This pipeline is a cooperative proj-
ect of these four countries and the USSR. Although each country is
laying the pipeline in its own territory, according to basic plans fur-
nished by the USSR, there has been some division of labor in supplying
components. East Germany, for example, is supplying pumps and a large
amount of pipe** and also has furnished a credit of nearly 6o million
(new) rublesxxx to Poland to finance the section in Polish territory.
Czechoslovakia is furnishing valves and Hungary communications equip-
ment. Most of the pipe-laying equipment apparently is being loaned
by the USSR. 12/
All production of petrochemicals in East Germany will depend
on petroleum received through the pipeline. Each of the other three
countries has at least one large plant scheduled to use raw material
from this source but will also use other raw materials: Poland will
receive natural gas as well as petroleum from the USSR, Hungary will
receive natural gas from Rumania and will continue processing domestic
petroleum and natural gas, and Czechoslovakia also plans to use domestic
natural gas to supply one of its major petrochemical plants.t
Bulgaria also will rely on Soviet oil but will be supplied by
tanker via the Black Sea. Later, domestic petroleum will supplement
Following p. 8.
** Pipe also is being obtained from the Free World.
*** In new rubles established by the Soviet currency reform of
1 January 1961. A nominal rate of exchange based on the gold content
of the respective currencies is 0.90 ruble to US $1. This rate, however,
should not be interpreted as an estimate of the equivalent dollar value
of similar US goods or services.
t In general, Czechoslovakia plans to use natural gas to produce
ammonia (for nitrogen fertilizer) and acetylene; to make olefins from
petroleum-derived crude gasoline; and to continue producing aromatic
hydrocarbons and phenols, as well as some acetylene, on a coal base. 12/
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European Satellites: Locations of Petrochemical Plants
Figure 2
13 . 20
, ,I. /
? ? -
\V Avy
? Petrochemical plant location
"Friendship"
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...
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...._tRAGuE .. ., "" \ ........, .06wiecim
oil pipeline
? 190 290 300
Stetute Mlles
c 100 200 3C,00
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WARSAW
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(Bratislava
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36443 7-62
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supplies from the USSR. Bulgaria also possesses two deposits of natural
gas, at least one of which could be used for producing petrochemicals.
Rumania will use its own abundant resources of both petroleum
and natural gas for its developing petrochemical industry. Albania
also has domestic resources of both petroleum and natural gas which can
serve as raw material for its single scheduled petrochemical plant.
B. Amounts and Current Status
1. Petroleum
In spite of some reports of difficulties in the supply of
materials and equipment, work on the "Friendship" pipeline apparently
is proceeding steadily and not far behind schedule, although there is
some indication that even if it is completed in 1963 as originally
planned, it will not actually be in operation until 1964. The southern
branch to Czechoslovakia, 700 kilometers (km) long (400 km in Czecho-
slovak territory), has been completed from Vlcie Hrdlo just outside
Bratislava in western Czechoslovakia via Uzhgorod on the Soviet-
Czechoslovak border to Brody in the Ukraine. It was put into operation
in February 1962, even though the oil must be brought from the Soviet
oilfields to Brody by rail. 14/
It has been reported that 1 million tons of oil will flow
through this section of the pipeline in 1962. 15/ This figure appar-
ently does not include amounts which will be diverted at Sahy to
Hungary.* There is no indication of how much of the oil actually will
be used for production of petrochemicals in either country. Any oil
that goes to Hungary presumably will be used mainly for fuels, because
the petrochemical plant at Szazhalombatta is still far from completion.
Eventually Czechoslovakia is to receive 97 percent of its petroleum
supplies through this pipeline 17/ and Hungary well over half.**
Work on the northern branch of the pipeline is proceeding
in both directions from Plock in Poland. The shorter section to the
Soviet border (290 km) presumably will be completed before the section
to the East German border (390 km), although both sections are to be
within 60 to 70 km of completion by the end of 1962.xxx The section
* This branch line to Hungary, about 130 km long, reportedly was
completed early in May 1962. 16/
** About 3 million tons, compared with an estimated amount of 2.2
million tons to be produced domestically. 18/
*** In April 1962, one-half of the total length of the Polish section
was reported completed. 19/
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of the line across the bed of the Oder River, between Poland and East
Germany, has already been laid, about 25 km downstream from Schwedt.
It also has been reported that in the USSR the Volga crossing has been
made, that the line has progressed "several hundred" kilometers west-
ward from the oilfields, and that work is underway on the section of
450 km across Belorussia. 20/
In 1965 the four Satellite countries are to receive 15 mil-
lion tons of crude oil through the pipeline, compared with the total
of 4 million to 5 million tons received from the USSR by other shipping
methods in 1959. By 1970 the amount is to reach 20 million to 22 mil-
lion tons. 21/
2. Natural Gas
In addition to an existing pipeline which carries Soviet
natural gas to Poland, another line is planned between Poland and the
USSR. The new line, extending about 300 km from Dashava in L'vovskaya
Oblast to Pulawy in Poland, is to carry 1 billion cubic meters (cu m)
per year, whereas current contracts call for only 300 million cu m per
year through the existing line during 1961-65. The Polish section of
the new line, to be started in 1963, is scheduled for completion in
1965. 22/
A pipeline from Rumania to Hungary, 365 km long, has been
in use since 1959 and is furnishing gas at the rate of nearly 200 mil-
lion cu m per year, equivalent to about 60 percent of Hungarian domestic
production in 1960 (342 million cu m). At present, Rumanian gas is
being used in Hungary mainly to produce electric power, but it is planned
to use these supplies in the future to produce petrochemicals. Plans
call for Hungarian production of gas to reach 1.8 billion cu m in 1965,
so that Rumanian gas will become relatively much less important to
Hungary unless shipments are increased considerably. 23/
V. Production Centers*
A. Location and Products
The four Satellites which will receive Soviet oil through the
"Friendship" pipeline are all building large petrochemical combines to
process it. Three of these combines -- at Schwedt in East Germany,
Bratislava in Czechoslovakia, and Szazhalombatta in Hungary -- are
terminal points for the respective branches of the pipeline. The
fourth -- at Plock in Poland -- is located on the line which is to sup-
ply East Germany.
* For locations of production centers, see the map, Figure 2, follow-
ing p. 8, and for details on individual plants, see Appendix A.
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The plant at Bratislava is to produce both synthetic phenol
and olefins and polyolefins. The combine at Schwedt is to start opera-
tion as a refinery, with some production of aromatics (benzol, toluol,
and xylols).* The enterprise at Plock has plans for producing a broad
range of products with emphasis on olefins and derivatives. The plant
at Szazhalombatta is scheduled to be the main supplier of materials for
the Hungarian plastics industry.
All four of these countries are also planning to build or ex-
pand other plants besides' those located directly on the pipeline.
Czechoslovakia has a second major plant under construction at Sal'a
nad Vahom, which is to produce nitrogen fertilizer from natural gas,
in addition to olefins and derivatives. An existing plant at Most-
Zaluzi, which currently produces chemicals primarily on the basis of
coal, is to become a significant producer of petrochemicals by 1965.
East Germany is building a new plant at Leuna near Merseburg
to produce phenol, caprolactam, ethylene, and polyethylene. A large
new plant for producing synthetic fibers on a petrochemical base is
being built at Guben, and capacity is being expanded at existing syn-
thetic fiber plants at Premnitz, Schwarza, and Wolfen.
Hungary is expanding an existing oil refinery at Szony which
is to produce petrochemicals and is building plants at Berente and
Tiszapalkonya to produce plastics and nitrogen fertilizer from Rumanian
natural gas. The plant at Berente, which is to produce polyvinyl
chloride plastic, will use calcium carbide as raw material initially,
converting to natural gas later. An existing plant at Kazincbarcika,
which produces ammonia and nitrogen fertilizer from coke, is being ex-
panded to twice its present capacity for fertilizer and is also to be
converted to operate on natural gas.
Poland has another large plant at Pulawy for production of
nitrogen fertilizer, and eventually plastics and synthetic fibers,
from natural gas. An existing plant at Tarnow-Moscice, which pro-
duces nitrogen and plastics using natural gas as part of its raw
materials, is being expanded.
Of the remaining Satellites, Albania and Bulgaria are planning
only a single petrochemical plant apiece. The Bulgarian plant, an oil
refinery located near the port city of Burgas, where Soviet oil can
easily be received by tanker, is to produce ethylene, propylene, poly-
ethylene, and eventually synthetic rubber. Bulgaria has mentioned
* Initially these products will account for only about 3 percent of
total production; significant production of petrochemicals is not
scheduled until later. 2.1i/
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plans to build an additional plant to produce polyvinyl chloride
plastic from acetylene, but the acetylene presumably will be obtained
at least initially from calcium carbide. The Albanian plant, scheduled
to produce nitrogen fertilizer, is to be built at Fier.
Rumania has the most widespread distribution of petrochemical
plants of all the Satellites. Two major petrochemical centers using
domestic petroleum are being developed at Onesti-Borzesti and in the
Ploesti area; the plant at Brazi is to be the largest in the latter
region. Plants to operate on natural gas are to be built at Craiova
and Tirgu Mures. A number of existing smaller plants are being ex-
panded. Petrochemical end products to be produced in Rumania include
carbon black, detergents, insecticides, and herbicides as well as fer-
tilizers, plastics, and synthetic fibers.
B. Status and Plans
Although the plant at Tarnow in Poland is using natural gas to
make ammonia, methanol, and a few other products, and the refinery at
Szony in Hungary may be producing some chemical intermediates from
domestic petroleum, the only installations in the Satellites now pro-
ducing petrochemicals in significant amounts are in Rumania. The
first plant with a fairly large capacity for nitrogen fertilizer,
100,000 tons per year, was completed in 1960 at Fagaras, and another,
which eventually is to have double that capacity, is scheduled to
start partial operation in 1962 at Roznov. Several other Rumanian
plants are operating on a limited scale, with a range of products in-
cluding acetylene, acetone, formic and oxalic acids, formaldehyde,
carbon, black, detergents, methanol, carbon tetrachloride, and phenol,
the latter in quantities sufficient to permit exports. One plant is
producing synthetic fibers on a petrochemical base, and at least two
are making small amounts of plastics. 22/
The large plants scheduled to be the mainstay of the Rumanian
petrochemical industry are not far advanced, however. There is no
evidence that construction has started on the two which are to be the
largest producers of nitrogen fertilizer (Craiova and Tirgu Mures, with
planned capacities of 400,000 and 500,000 tons per year, respectively),
although both are scheduled for completion by 1965. The combine at
Onesti also is scheduled to be completed by 1965. It may have started
to produce caustic soda in 1961 as planned. butprobably is not yet pro-
ducing petrochemicals. The plant at Brazi is reported to be in partial
operation, but the products are not known. 26/
Czechoslovakia probably will become the second significant pro-
ducer of petrochemicals among the Satellites, inasmuch as two of its
plants, at Bratislava and Sal'a nad Vahom, are scheduled for at least
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partial operation in 1962, and Soviet oil reportedly is already being
received by pipeline. By 1965 the plant at Sal'a nad Vahom is sched-
uled to produce about one-third of all nitrogen fertilizer to be made
in Czechoslovakia. 27/
East Germany also may be ready to start producing petrochemicals
on a significant scale by the end of 1962, if the first stage of the
installation for producing ethylene at Leuna is completed on schedule.
The Hungarian plant at Berente also is scheduled for completion in 1962,
but its initial operation will be based on calcium carbide, not petro-
chemical raw materials. There is some indication, however, that the
plant at Kazincbarcika may shift to operation on natural gas before the
end of 1962. 28/
The remainder of the petrochemical capacity currently planned
in Czechoslovakia is scheduled for completion by 1965. In East Germany,
however, expansion of the combine at Schwedt is planned through 1970,*
and in Hungary the refinery planned at Szazhalombatta is not scheduled
for final completion until 1968. There is little indication as to
whether or not construction of petrochemical installations is proceed-
ing on schedule in these countries. Initial operation of the combine
at Schwedt, however, has been postponed from 1963 to 1964. Several
storage tanks have been completed at this combine and have been in use
since September 1961, but it does not appear that the plant proper has
been started yet. 22/
The petrochemical industry in Poland may be expected to augment
its present limited production by 1964, when the refinery at Plock prob-
ably will start producing some chemical products from petroleum. Plans
call for completion of the first stage of the combine at Plock in 1965
and of the final stage in 1971. The petrochemical installation to be
built at Tarnow is scheduled for completion in 1967, and the plant at
Pulawy, which has not yet been started, is supposed to have its first
two stages operable by 1968. 31/
The first stage of the oil refinery near Burgas in Bulgaria is
scheduled for completion in 1963, with production of polyethylene sched-
uled for 1964. It is not known whether or not construction of the
Albanian fertilizer plant at Fier has been started, but the plant is
listed among projects to be completed by 1965. 32/
* There have been rumors that this expansion would not take place
but that additional refineries, of about the same size as the first
stage at Schwedt, would be built at other locations. Whether or not
these refineries, if built, would also produce petrochemicals has not
been indicated. Official reports mention no refineries except at
Schwedt. 22/
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VI. Sources of Technology and Equipment
A. Intra-Bloc Cooperation
Although most of the Satellites are building at least part of
the equipment for their petrochemical installations themselves, all
except Albania are receiving aid in some degree from the USSR. The
USSR was scheduled to aid Albania, also, by supplying a plant for
nitrogen fertilizer, but the aid was canceled as a result of the
political rift between the two countries. Although Communist China
presumably has now agreed to assist in building this plant, it is not
certain whether the assistance includes technical aid or is limited
to financial support.
Bulgaria is receiving Soviet technical aid for the petro-
chemical plant being built at Burgas, and the plant will be entirely
equipped with Soviet machinery and instruments. Soviet data were fur-
nished for the Czechoslovak plant at Bratislava. The USSR has fur-
nished Hungary with process data and equipment for polyvinyl chloride,
polyethylene, and nitrogen fertilizer. East Germany has received
Soviet blueprints and data for the phenol plant being built at Leuna
and for the refinery and petrochemical plant under construction at
Schwedt. Rumania has received Soviet technical aid and equipment for
several plants. East Germany and Rumania have also furnished equip-
ment to each other. Poland is receiving equipment not only from the
USSR but from Rumania, Czechoslovakia, and Hungary as well.
B. Procurement from Western Sources
In spite of the extent of Soviet aid and their own production
and exchange of equipment, the Satellites are obtaining a considerable
amount of petrochemical technology and equipment from Western countries.
The most outstanding example of procurement in the West was the joint
purchase by Poland, East Germany, Czechoslovakia, and Rumania of pro-
cess data from the UK for building plants in all four countries for
production of polyethylene. The plants are to be located at Leuna in
East Germany, at Brazi .in Rumania, at Blachownia Slaska in Poland,
and probably at Bratislava in Czechoslovakia. All will be similar in
size and design, because apparently only one set of documents is being
prepared, each country paying about one-fourth of the costs. Poland
has admitted that it could not have solved the technical problems
without aid and also has noted that not one of the countries alone
could have afforded the purchase price. The plants in Poland and
Czechoslovakia are scheduled for completion in 1963. Dates for com-
pletion of the other plants have not been specified. Each plant will
have a capacity of about 24,000 tons of polyethylene per year. 33/
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East Germany also is obtaining an ethylene plant from the UK
and another from West Germany and is reported to be purchasing some
equipment for the Schwedt combine from Western countries, the Nether-
lands for one. part of the equipment for
the combine being built at Plock is being produced by France, the UK,
Italy, and Austria. Rumania has obtained a Belgian license for a
process for producing acetylene from natural gas. 34/
VII. Problems and Prospects
Problems faced by the European Satellites in developing their
petrochemical industry differ little from those faced in developing
the chemical industry in general. Progress in construction nearly
always has been slower than planned, and procurement of equipment has
been a constant bottleneck. East Germany is having particular diffi-
culties with the latter problem since the decision of summer 1961 to
make the East German economy immune to any actions which West Germany
may take, or threaten to take, to interrupt interzonal trade. Corrosion-
resistant materials for chemical equipment, especially stainless steels,
have been procured largely from West Germany, and the necessity of
finding other sources of supply undoubtedly has been one factor con-
tributing to the admittedly inadequate performance of the segment of
the East German metal-fabricating industry which makes chemical equip-
ment. To the extent that East Germany is scheduled to furnish equip-
ment to the other Satellites, delayed deliveries must be reflected in
delays in completing new capacity for chemical production in the other
countries.
The degree to which the Satellites succeed in achieving their goals
for 1965 will be appreciably determined by the amount of technical aid
and equipment they continue to obtain from the USSR and by the amount
they receive from ?the West. If Western aid already contracted for
should be withdrawn (which does not appear to be likely under present
circumstances), the petrochemical industry of the Satellites would
suffer a serious setback. If, on the other hand, the Satellites should
succeed in obtaining Niditional technology and equipment from the West,
lags in their own program might be more than compensated for. It is
not unlikely that some further contracts will be signed with Western
companies, but problems of cost and foreign exchange may limit the ex-
tent of procurement from the West.
The meager information available on the progress of construction and
the procurement of technology and equipment points rather definitely
toward a failure by the European Satellites to fulfill the plans for
production of petrochemicals in 1965. On the other hand, it seems un-
likely that any major segment of the program will be abandoned or sig-
nificantly modified. It is expected, rather, that target dates will
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merely be extended. The petrochemical industry is sufficiently impor-
tant to the development of the chemical industry of the Satellites --
and the chemical industry is sufficiently important to the development
of industry as a whole -- to assure that a large effort will be devoted
to pushing the petrochemical projects to completion, even though sched-
ules may be delayed a year or two. Soviet interest in the petrochemical
industry of the Satellites -- both as a market for Soviet oil and as a
source of desired end products, especially plastics* -- may be expected
to provide supplemental impetus for completing the planned projects.
Even if plans for the petrochemical industry in the Satellites
through 1965 are not completely fulfilled) there still will be a sub-
stantial increment in production of several important chemical products
and a major step toward establishing a modern base for a major part of
the chemical industry. It should be noted, however, that although most
of the increase in production of synthetic materials and nitrogen fer-
tilizers will come from petrochemical sources, Czechoslovakia, Hungary,
and East Germany all emphasize that the coal base is by no means to be
abandoned; East Germany, in fact, expects to expand capacity for calcium
carbide by more than 40 percent by 1965, 35/ in order to provide addi-
tional raw materials for synthetics, while simultaneously establishing
its petrochemical industry. Moreover, current production of petro-
chemicals in the Satellites is so small that even if all programs for
expansion through 1965 should be completely realized, the area would
still be lagging in this field in comparison with the West.
* East Germany in particular is expected to furnish plastics, espe-
cially polyvinyl chloride, to the USSR in significant amounts.
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APPENDIX A
PETROCHEMICAL PLANTS IN THE EUROPEAN SATELLITES
The accompanying tabulation lists plants producing primary or basic
petrochemical products in the European Satellites. Plants which pro-
duce the major petrochemical end products (synthetic rubber, plastics,
synthetic fibers, and fertilizers) thus are included only if they also
produce primary or basic products. Other principal producers of the
major petrochemical end products include the following: in Czecho-
slovakia, the plant being built at Kralupy nad Vltavou to produce syn-
thetic rubber and plastics; in East Germany, plants for synthetic
fibers being built or expanded at Guben, Premnitz, Schwarza, and Wolfen;
in Hungary, the plant at Nyergesujfalu which produces Danulon (nylon);
and in Poland, three synthetic fiber plants at Gorzow, Lodz, and Torun
and the chemical combine at Oswiecim, which will use petrochemicals
from the plant at Plock for part of its production of synthetic rubber.
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Name and/or Type
Principal Products
Location
Of Installation
Status
and Annual Output Raw Materials
Remarks
Albania
Fier
Nitrogen fertilizer plant.
Planned; completion scheduled
Nitrogen fertilizers (ammo- Domestic natural gas
Presumably receiving aid from
for 1965.
nium nitrate) (110,000 tons). and/or petroleum.
Communist China.
Bulgaria
Burgas
Oil refinery and petrochemical
Refinery scheduled for operation Ethylene (60,000 tons), Soviet oil (by tanker);
Soviet aid in construction;
plant.
in 1963, production of poly-
propylene (2,000 tons), probably domestic oil
all machinery and equipment
ethylene for 1964; plant for
synthetic rubber to be built in
polyethylene (10,000 tons), later, also.
synthetic rubber (30,000
from the USSR.
Czechoslovakia
Bratislava
Most-Zaluzi
Sal'a nad Vahom
1964-67.
Slovnaft (petrochemical plant). Initial operation scheduled for
1962; full operation in 1965.
Czechoslovak-Soviet Friendship
Chemical Works (chemical
plant and oil refinery).
Existing plant, operating pri-
marily on the basis of coal;
production of petrochemicals
to begin to be significant by
1965.
Duslo (petrochemical plant) First stage to be completed by
1962, second by 1965.
East Germany
Leuna near Merse- Leuna II (petrochemical
burg plant; will be a part of
VEB Leuna-Werke "Walter
Ulbricht")
* Calcium ammonium nitrate and urea.
Partial operation scheduled in
1962; completion in 1965.
tons), phenol, styrene, and
synthetic alcohol.
Phenol, acetone (cumene
process); ethylene, poly-
ethylene; propylene (20,000
tons); polypropylene; and
inorganic products.
Ammonia, methanol, aromatics;
olefins and synthetic ethyl
alcohol planned.
Soviet oil (by pipe-
line).
Coal, to be supple-
mented by Soviet oil
Ammonia, nitrogen fertilizer* Domestic natural gas.
(100,000 tons), mixed fer-
tilizer; acetylene, acetic
acid, acetaldehyde; ethylene,
vinyl acetate, and chloro-
prene.
Phenol (by cumene process)
(42,000 tons), caprolactam
(24,000 tons), ethylene
(80,000 tons), polyethylene
(38,000 tons), and polypro-
pylene.
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Initial source of feed-
stocks not known; pre-
sumably petroleum
fractions eventually
will be obtained from
refinery at Schwedt
(from Soviet oil).
Terminus of pipeline; probably
site of polyethylene plant
purchased from the UK; Soviet
data used in construction.
To produce enough synthetic
ethyl alcohol from oil by
1963 to supply synthetic
rubber plant at Kralupy nad
Vltavou.
Key project of the Five Year
Plan; is to produce one-third
of all Czechoslovak nitrogen
fertilizer by 1965.
Largest investment project of
East German chemical industry
under the Seven Year Plan.
West Germany and the UK are
furnishing technology and
equipment; the USSR furnished
blueprints for the cumene
process.
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Location
East Germany
(Continued)
Schwedt/Oder
Hungary
Berente, near
Kazincbarcika
Kazincbarcika
Siazhalembatta
Szony
Name and/or Type
of Installation
Schwedt Oil Refinery
Berente Chemical Works*
Borsod Chemical Combine
Oil refinery
Szony Oil Refinery
Status
First stage to be in operation
in 1964.
To be completed in 1962.
Existing plant being expanded;
to operate on natural gas by
1963.
Planned; completion scheduled
for 1968.
Existing plant being expanded.
* This plant may be a part of the Borsod Chemical Combine in Kazincbarcika.
Principal Products
and Annual Output
Raw Materials
Remarks
Initially, gasoline, diesel Soviet oil (by pipe-
fuel, lubricants, and so on; line).
additionally after 1965,
aromatics and olefins.
Polyvinyl chloride (6,000
tons initially, to expand
to three to four times that
amount later) and inorganic
products.
Nitrogen fertilizer (cal-
cium ammonium nitrate)
(132,000 tons in 1960,
300,000 tons 'planned) and
methyl alcohol (planned).
Raw materials for plastics.
"Gas for the organic
chemical industry."
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C-0-N-F-I-D-E-N-T-I-A-L
Calcium carbide ini-
tially (for organic
production), but
shift to natural
gas later (presum-
ably from Rumania).
Coke at present;
natural gas from
Rumania later.
Petroleum from the
USSR.
Hungarian petroleum
at present; will re-
ceive supplemental
supplies by pipeline.
Terminus of the northern branch
of the pipeline; third larg-
est investment project of
the East German chemical in-
dustry under the Seven Year
Plan; drawings, blueprints,
and some equipment from the
USSR; also some domestic and
Western equipment.
Equipment obtained from
France, West Germany, East
Germany, and the USSR.
Using a Soviet process and
some Soviet equipment for
expansion; also some
domestic equipment.
Terminus of the Hungarian
branch of the pipeline; will
be the main supplier of
several materials for
plastics.
Declassified in Part - Sanitized Copy Approved for Release 2013/08/13: CIA-RDP79R01141A002500030002-8
Declassified in Part - Sanitized Copy Approved for Release 2013/08/13: CIA-RDP79R01141A002500030002-8
C-0-N-F-I-D-E-N-T-I-A-L
Location
Hungary (Continued)
Tiszapalkonya
Poland.
Name and/or Type
of Installation
Status
Tisza Region Chemical Combine
Blachownia Slaska, Coke-Chemical Plant
near Kedzierzyn
Plock
Pulawy
Mazowsze Refinery and Petro-
chemical Combine
Pulawy Nitrogen Plant
Scheduled to start operation in
1963-64; polyethylene plant to
be at full capacity by 1966.
Existing plant being expanded
and partly converted to petro-
chemical raw materials; petro-
chemical processing to start
by 1963.
Partial operation to start 1964;
completion of first stage sched-
uled for 1965, final stage 1971.
Initial production expected in
19652 but construction not yet
started; two stages to be com-
pleted by 1968 and a third at
an unspecified later date.
Principal Products
and Annual* Output
Ammonia (100,000 tons),
nitrogen fertilizer (ammo-
nium nitrate) (350,000
tons**), urea (102000 tons),
and polyethylene (10,000
tons); synthetic resins for
paint in production now.
Aromatics from coal at
present; later ethylene,
ethyl benzol, polyethylene
(16,000 tons in first stage),
and polyester fibers.
Phenol (40,000 tons),
ethylene oxide (10,000 tons,
later to double), butadiene,
synthetic rubber (30,000
tons), propylene and poly-
propylene, xylol (3,100 tons
in 1964, 6,000 tons in
1970), dimethyl tere-
phthalate, nitrogen fer-
tilizer, urea, glycerine and
glycols, detergents, syn-
thetic resins, and inorganic
products.
Nitrogen fertilizer (includ-
ing urea) (340,000 tons by
1968), ammonia (1,350 tons
per day by 1968), and poly-
vinyl chloride (70,000 tons
by 1965).
Raw Materials
Natural gas from
Rumania and/or low-
octane benzine pro-
duced domestically.
Coal at present; later,
light petroleum frac-
tions also, presumably
from Soviet oil.
Soviet oil by pipeline.
Soviet natural gas by
pipeline.
* Unless otherwise indicated.
** This figure appears to be high in view of the amount of ammonia to be produced. A figure of 300,000 tons per year has also been reported.
- 21 -
C-0-N-F-I-D-E-N-T-I-A-L
Remarks
Technology and equipment from
the USSR, including plant for
polyethylene.
Steam pyrolysis process ob-
tained from Czechoslovakia
and polyethylene plant from
the UK.
Many installations designed in
Poland, but equipment also
obtained from the USSR,
Rumania, Hungary, Czecho-
slovakia, France, Italy,
Austria, and the UK.
Much equipment to come from
Czechoslovakia.
Declassified in Part - Sanitized Copy Approved for Release 2013/08/13: CIA-RDP79R01141A002500030002-8
Declassified in Part - Sanitized Copy Approved for Release 2013/08/13: CIA-RDP79R01141A002500030002-8
C-0-N-F-I-D-E-N-T-I-A-L
Location
Poland (Continued)
Tarnow-Moscice
Rumania
Brazi
Buciumeni
Copsa -Mica
Craiova
Name and/or Type
of Installation
Feliks Dzierzynski Nitrogen
Plant
Petrochemical Plant No. 2
Sometimes referred to as
"Acetylene Plant No. 2"
Nicolae Teclu Plant
Petrochemical Combine
Status
Existing plant being expanded
and partly converted to operate
on natural gas; expansion to be
completed by 1967.
Under construction, but in
partial operation.
Producing on pilot-plant
scale (since 1955).
Existing plant.
Completion planned for 1965
but construction apparently
not yet started.
Principal Products
and Annual* Output
Ammonia (present production
of 300 tons per day to
treble by 1965**), nitrogen
fertilizer (including urea,
300 tons per day by 1962),
methanol, vinyl chloride
(80,000 tons planned),
acrylonitrile (12,000 tons
planned), caprolactam
(8,000 tons planned), and
Inorganic products.
Acetone, methyl-ethyl
ketone, polyethylene, and
synthetic resins.
Acetylene and acetone.
Formic and oxalic acids,
formaldehyde, methyl
methacrylate (Plexiglas),
and carbon black.
Nitrogen fertilizer (400,000
tons), butanol (20,000
tons), plastics (unspeci-
fied), and synthetic and
cellulosic fibers.
Raw Materials
Domestic natural gas
for all new products.
Domestic petroleum.
Domestic natural gas.
Domestic natural gas.
Remarks
Some new installations de-
signed domestically; license
and know-how for partial
oxidation of methane obtained
from Montecatini in Italy; in
1960, processes were being
sought for acrylonitrile and
urea (those available in
Poland and East Germany were
considered to be unsatis-
factory).
To be the main petrochemical
plant in the Ploesti area;
equipment received from the
USSR, East Germany, France,
and the UK (polyethylene
plant).
Joint Hungarian-Rumanian
project; some equipment from
East Germany.
Received technical aid from
the USSR for producing carbon
black and from Chimigaz
Institute in Medias for both
carbon black and Plexiglas.
Domestic natural gas. No indication of outside aid;
completion by 1965 doubtful.
* Unless otherwise indicated.
** All increases presumably will be based on natural gas; it is not known whether existing installations will be converted.
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C-0-N-F-I-D-E-N-T-I-A-L
Declassified in Part - Sanitized Copy Approved for Release 2013/08/13: CIA-RDP79R01141A002500030002-8
Declassified in Part - Sanitized Copy Approved for Release 2013/08/13: CIA-RDP79R01141A002500030002-8
C-0-N-F-I-D-E-N-T-I-A-L
Location
Rumania (Continued)
Fagaras
Name and/or Type
of Installation
Chemical Combine No. 1
Onesti-Borzesti Petrochemical Combine
Ploesti
Risnov
Roznov
Savinesti
Tirgoviste
Petrochim Plant (refinery
and petrochemical plant)
Chemical plant
Nitrogen Fertilizer Combine
Synthetic Fiber Plant
Refinery and petrochemical
plant
Status
Principal Products
and Annual Output
Raw Materials
Existing plant.
Scheduled to produce caustic
soda in 1961 and to operate as
a petrochemical combine by
1965;
Existing plant.
Existing plant.
Originally scheduled to pro-
duce dilute nitric acid and
urea in 1961, but start of
operations postponed to 1962.
Existing plant scheduled for
expansion.
Existing plant.
Nitrogen fertilizer (mainly
ammonium nitrate, more than
100,000 tons), phenol, and
bakelite.
Phenol (18,000 tons), ace-
tone (11,000 tons), poly-
vinyl chloride (36,000
tons), synthetic rubber
(50,000 tons), DDT (3,500
tons), herbicides (1,000
tons), tricresyl phosphate,
and inorganic products.
Domestic natural gas
and petroleum frac-
tions.
Remarks
Produced nitrogen fertilizer
on a small scale before 1960,
when new plant for ammonium
nitrate was completed; equip-
ment from the USSR for pro-
ducing fertilizer and phenol.
Domestic petroleum and Equipment and technical aid
cracking gases. from the USSR.
Detergents and other unspe- Domestic petroleum.
cified products.
Acetylene, acetic acid, and
polyvinyl acetate.
Ammonia (100,000 tons),
nitrogen fertilizer (ammo-
nium nitrate) (210,000
tons), and urea.
Relon (nylon) fiber (800
tons), relon filament
(500 tons), and rolan
(orlon) fiber (200 tons).
Naphthenic acid for
paints and lacquers.
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C-0-N-F-I-D-E-N-T-I-A-L
Domestic natural gas.
Domestic natural gas.
Domestic petroleum
and natural gas.
Domestic petroleum
Producing on a small scale.
Producing acetylene and poly-
vinyl acetate since 1960
(small scale); equipment from
East Germany and domestic
sources.
Soviet documentation and equip-
ment; urea to be used at
first to make plastics, later
for fertilizer.
Total production of fibers to
be 13,000 tons in 1965, in-
crease consisting mainly of
rolan; relon tire cord also
to be made; plant believed
to be built largely with
Western aid.
Declassified in Part - Sanitized Copy Approved for Release 2013/08/13: CIA-RDP79R01141A002500030002-8
Declassified in Part - Sanitized Copy Approved for Release 2013/08/13: CIA-RDP79R01141A002500030002-8
C-0-N-F-I-D-E-N-T-I-A-L
Location
Rumania (Continued)
Tirgu Mures
Tirnaveni
Tuna
Victoria
Name and/or Type
of Installation
Petrochemical combine
Karl Marx Chemical Combine
Turda Chemical Plant
Chemical Combine (formerly
"I.V. Stalin Chemical
Combine")
Status
Completion scheduled for 1965,
but construction apparently
not yet started.
Existing plant.
Existing plant.
Existing plant being expanded.
Principal Products
and Annual Output
Ammonia (100,000 tons),
nitrogen fertilizer (in-
cluding urea) (500,000
tons), and plastics and
synthetic fibers (unspe-
cified).
Raw Materials
Remarks
Domestic natural gas.
Ammonia and ammonium chloride, Coal and natural gas.
polyvinyl chloride (limited
production), and inorganic
products.
Carbon tetrachloride, poly-
vinyl chloride (5,500
tons), DDT, and inorganic
products.
Ammonia and derivatives, in-
cluding nitrogen fertilizer
(ammonium nitrate) and urea;
plastics (aminoplasts),
methanol, formaldehyde, and
inorganic products.
- 24 -
Domestic natural gas
for carbon tetra-
chloride-and possibly
other products.
Domestic natural gas.
Probably will receive tech-
nical aid from the USSR.
Oldest chemical plant in
Rumania; not a significant
producer of petrochemicals,
but uses natural gas to make
ammonia and derivatives;
polyvinyl chloride probably
made from coal (via calcium
carbide).
Production of polyvinyl chlo-
ride and carbon tetrachloride
began in 1959; petrochemical
production still limited.
Ammonia and nitrogen ferti-
lizer produced now on small
scale; production to be in-
creased by 1965; production
of methanol and formaldehyde
from natural gas started in
1960-61; ammonium carbonate
supplied to the fiber plant
at Savinesti.
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