THE PETROCHEMICAL INDUSTRY IN THE USSR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62-00328A000100200001-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: November 9, 2016
• Document Release Date: August 17, 1998
• Sequence Number: 1
• Publication Date: July 22, 1958
• Content Type: MF

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;o1o/ID.38
;on-Grol Noo 48766
July 1458
MEMORANDUM FOR: Economic Defense Intelligence Committee
FROM Chairman, EDIC
SUBJECT The Petrochemical Industry in the USSR
REFERENCE EDIC Case No, 30, SECRET
file Copy
lo The attached intelligence document on the Petrochemical Industry Ln the
USSR was prepared by CIA in response to the reference EDIC Case No, 30 initiated
by the Department of Commerce, It is now distributed for review and ac4.1eptance
by EDIC members.
2. If no request for committee discue3ion of this document is received prior
to the close of business 1 August 1958 it vill be regarded as approved and the
ease will be closed, 25X1A9a
Chairman
Attachment:
The Petrochemical Industry in the USSR
Distribution:
Cat B (3.5p 80 10)
0 - (All)
E -
25X1A9a
Deputy Director (Coordination)
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PeTR.00AINICAL INDUSTRY IN THE USSR
A, Sumwary and Conelusions
One of the major tuella facing the USSR ceemical tndustay is the deVelOPUlert
4A4i expansion of the production of petrochemicals The dieectives of the 1114/
defunct Sixth Five-'!ear Plan stated "it is one of the vital tasks of the themecal
industry to raise drastically the utilization of petroleum, natural eases, ant
eetroleum products for the production of synthetic rubber and alcoho, detergents,
axle other chemical produets? with a view to reducing considerably the, expenditure
of emains, vegetable ale, and other kinds of food raw materialsn"
In the accelerated proems foe the chemical industry, announced in Khruahchenres
report to the plenary seveion of the Central Committee of the CPSU held oa
6-e May X958, there ie to be continued emphasis on the utilization of oetroeetm
ene natural gases for petrochemical production, and large-ecale capital investments
are aoheduled to premede the nears' plant, equipment, aad technclegyn
Compared to the broadly based petrochemical industry in the United 6tatese
USSR production of petravhemicals is still in its infancy Prior to 1952-19530
the USSR. bed no petrochemical industry at all and the modern petroleum refining
procesees, using compXex catalytic cracking and other advanced chemical tecshniquee,
mhich are basic to this induetry, have not been fully mastered by Soviet engineers
nor is the necessary equipment produced in the required quantities The difficultiee
encountered in setting up e petrochemical operation are further compounded by the
fact that, in generale chemical technology per se is not transferable to the
petrochemical industry, so that an entireey niarIody of knowledge ane expexeeree
relating specifically to petrochemistry euet be accumulated before lergeescele
and diversified production can be undertaken, As a result, the growth of the
Russian petrochemical industry to date has of necessity been slow and its output
has thus far been restricted to a few of the most elementary products such es
eynthetic alcohol, acetone, and phenole In short, the USSR does not as yet have
a sUbstantial basis - in. Urea of plant, equipment, and technology - for the
ereation of a highly complex petrochemical industry such as is required to eupport
an advanced technologyn
en Discussion.
The Russians w initial interest in petrochemicals was derived from the need to
replace foodstuffs as a major source for making alcohol required as a basic raw
material in the synthetic rubber industry. In 1946, Stalin pointed out tee
urgency of this problem; however, it was seven years later before /synthetic
eecohol was produced commercially by a petrochemical proceeen
Soviet current interest is principally directed to the rapid expansion of
the production of texeiles, plastics, and of other materials based or petroeeum
aources0 These products are basic to Soviet objectives of more and better
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producers q goods, including defense items, and more consumersa goods, These
objectives are the stated goals of the forthcoming Seven Year Pisa (1959 -
1965). While tonnage figures have not been announced, in many cases as expressed
by percentage increases to be attained), plan goals appear to be to match 1957
production in the United States. Of the 100 billion rubles to be invested in tho
production and purchase of plant and equipment for the chemical industry during
the period covered by the plan, a substantial part will be devoted to petrochemicals,
The types of end-products involved are, in general, those which are in mass
production in the United States. This is evident from the type of plants included
In the USSR "shopping lists" currently under review by the US Department of Commerce.
Aocording to a recent statement by the Deputy Minister of the Chemical
Industry, the Soviets plan, in 1965. to use more than 2.5 million tons of liquid
hydrocarbons from associated gases to produce chemical products. If, instead of
these gases, food raw materials were used it would require an expenditure ef
over 300 million poeds of grain (1 pcod e 36 lbs), of 13 million tone of potaeoes.
Thus the planners expect petrochemicals to become a major industry by 1965.
The key factors determining the degree to which these plans will be fulfilled
are (a) the availability of equipment, and, (b) the availability of the neeersary
production know-how. At present the Blec is short of equipment manufacturing
capacity, More serious is the shortage of chemical engineeeing technology. Peat
experience has been that except for individual high-priority projects, such aa
Sputnikpm it normally takes from five to ten years, or even longer, for the
Soviets to translate laboratory knowledge into commeroial production, Current
plans call for rapid expansion in many areas of the chemical industry. Even
today, before the plan has started, there are many complaints of construction lags,
Equipment deliveries are slow and the producers are blaming the engineers for
their failure to furnish design data. Many processes used in the USSR ehemical
industry are deficient in mechanization and automation. The Communists hope to
meet the tremendous increase in skilled-labor requirements, which their plans
entail, by the general adoption of modern techniques. The purchase of the latest
U.S. technology, as a part of the plants under discussion, would malls the USSR
to save thousands of man/years of research and development,
In brief, the USSR has set high goals for itself and realises that these can
be met only with the help of the most recent Free World equipment and technology.
The attainment of these goals will play a major part in the economic competition
of the USSR with the US.
CO .ARMgx,
The attached exhibit gives the latest available intelligence information on.
the status of USSR. production of the typos of end products made by the petrochemical
plants included in the USSR "shopping list"
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Nor
1, ?pilyethylene and Polypropylene
FT. `. ? . . ? . ?
Se far an is known, the USSR is one:liming only pilot plant quantities of
high-pressure polyethylene; the productioa rate being about 2o5OO metric tom
per year at the Leningred plant and additional, presumably smaller quantitieu
are produced at experimental installations. Low pressure polyethylene is Ain
in the laboratory stageo, but the Soviets claim to be building a plaint to produce
15pC00 tons a year,
ARNOztg at suppliee of raw materials availabltk) the Soviets appear to be
planning to make large euantitiee of these plastiese However the numeroue
references appearing in the Soviet press and technical journals are vague using
euch expressions asp "produttion has been organisedp" "preduction will be put
into operationp" "a plant will be built," etc. The same expressione have appeared
fer the past several years. In January it was reported that an equipment firm
in the USSR would build "a machine for making polyethylence"
A member of the Soviet plastics delegation which vleited England in 1957
admdtted that the USSR was ehort of equipment needed for making high-pre:users
polyethylene. When the delegation atteripted to purchase the technology for making
low pressure polyethylene in West Liermanye the statement was made that the, could
pay any price for this information since it would save them five years in getting
lnto production. Although the USSR in continuing to make every effort to proeure
polyethylene production equipment and technologya there have been no reports af a
e1 baying been consummated thue far.
Polypropylene production according to Soviet press reporte is only in the
Iaboratory stage, Bloc countries u5ua14 experience a considerable Lag, normally
five to ten years, between laboratory or pilot-plant production and commerciae
operations. If the USSR I:R..1cm to attain vclume production of these types of
plastice in the foreseeable future!, it appeare necessary that both equipment
and technology will have to be purchased from the West.
Caprolactam
In the field of nylonse the principal production in the USSR is tne Nylon-6
type, mite only very small quantities of Nylon 6/6 being made, Main MOS are for
tire cord for truck and aircraft tires!, and parachute cloth and shroud limes,
Since production of both type is limited - estimated at about a total of 8,500
tons in 1955 - very littXe is used for coneumer goods and molded items are
apparently made only for vary epecial applications. Since the raw materiale for
ceprelactem - bensol and cyclohexane - are available in ample amounte and the
technology of manufacture is well established:, the Soviets appear to be more
interested in expanded W.:ion-6 production? A West Lierman arm is reported to be
making a tantalumelined autoclave to he delivered to the USSR for maldng
eaprolactam. A goal of 10?000 tons of Ny1on-6 tire cord hay been ammounced far
1960 and an probably be realimed if the project is given sufficient priority.,
Partieririonitrile
The Rumanians were negotiating with Chcmstrand Co. for the purchese of a
pint and the technology for the fintire process of making "Acrilan," a
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pelyacryloniteile fiber? teicezellea to the latest infornation, Ovencetzand has
eel:ted eff the negotiettone, The Soviete have been interested for several, yeaee
in producing this type of fiber as a poevible substitute for meol and fur garments?
Curreetly they are believed te be making it on 4 small scale, and plane eall fur
the production ef 5,000 tons by 1960. Since the basic raw materials can be made
fron petreehemical eourcee? tee Soviets have ample poeential supplies ma whiat tee
been production.
Polvvinylpyreolidone
it was announced in :e955, that Russian researchera had worked out a method for
the production of polyvinylpyrrolidone. an exteedet for !Acted plasma vhich en be
atored for emergency wee However, no actual productlon has been anneunced thus
far? A Weet.German deIegation.visiting Mescow in 1957 toes reported to have negotiated
the sale of a plant to the Russiane. There have been no rape-4as received on the
construction of this plant?
5, Phthalic dride
The traditional German technology for tte menufacture of phthalic =hydride fraa
naphthelene is well known to chemical engeneers in the USSR and recentty the Screiets
have announced that a new process had been developed which would reduce the capetal
inv?stment needed for makiag this material from eylens,, The latter is presentle
being obteekned fmin coke chemieal sources,, Although no reference has been Se=
Indicating that the Russians are Plaiting xylene from petroleum, they aro probably
able to do Boo Rovever? there is some doubt whether they are able to extract the
gylene fraction necessary for this ?advanced process? It would appear that Soviet
interest in the Us techeoelege is primarily in the use of moving-bed catalysts,
which would be applicable to othur eanufacturing processes. There has been no
previous reference to the exparesion of phthalic anhydride production ay a part a
the program for developine the petrochemical industry.
6, Maleic Anhydride
Russian teehnecal literature has made only casual reference to this material.0
and there is no direct evidence that its production is considered to be a high-'
priority project.
70 Melamine
East Germany has produced malandne for several years and the Soviets are
believed to be producing small amounts on a pilot plant scale only. A large nshop"
for its manufacture is reeorted to be under construction.
8n Acrylonitrile
It is believed that aceylonitrile is one of the materials which the Soviete plan
to expend greatly during the next seven years. Fron their standpoint this is a
desirable operation since the techno/ogy of production from petroleum sources, mhioh
has been developed and is well established in the United States, =mid eliminaem
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the need for using calcium carbide which is costly in terms of electrec pow
requirements? The acquisition of the latest design information would form the
basis for an important petrochemicti operation which would provide lenge quantitiee
of intermediates for plantioea, fibers? and synthetic rubber? ulthout drawing on
supplies of vitally needed raw matarials
90 PixametVetal-21E.442
To date very little has been published in the USSR on the use of plastic nylon
for the manufacture of machine parts, the principal interest in Nylon 6/6 being
in the fiber field. Current production is believed to be very small; thus the
acquisition of a hexamethylene dimmine plant would help Soviets make good on
their promisee of more consumer goods without adding to the burden on their eqvip-
ment industry o The technology for the synthesis of hexamethylene diaseine wee
developed and is closely held by a United States firm (Dupont).
100 Acetylene
According to Soviet publications the problem of making acetylene from methaae
has been under study for some ten years? with little progrese being made during
that time Sc far as is known there is no commercial production in operatione
The Wniff process, for example with the concurrent production of ethylenen would
have an added attraction to the Soviet program for establishing a telooehemicel
industry,
EMIlene
There have been recent references in the Soviet literature to difficultiee
being experienced from impure etnyiene? These seem to confirm the proeeems
being encountered in getting their petrochemical industry bate operatien. Aeaio-
ability of the equipment and technology required to extract hydrogen sulfide 17rom
natural gas to obtain ethylene of the desired purity would verve the double
purpose of providing high purity ethylene and augmenting the supply of elemental
sulphur,
12,, Foam Poret.hane
The USat has just recently announced the mastery- of the 1'4ot:hod for making Sou4
poly-urethane' Since this announcement refers to a laboratory accraple.stemente,
however? it is believed that comer eial production will require a considerable
period of time, unlees the RUG:A.4E1S are succeseful in purehaeleng the tetohnolenz
and equtpuent fren 'the We- The 1e:ethane itself would be neful aedam:no,
fuel after the :neeenpreatn,,I.,:n cen en pendent,
713,?
thrita recenItly tbe Rute,ihnr. on 7 di-vinyl )7abber.tcn
Vatediene - fo? all genw,-s7.-Turpc e appAcAtiov4, The bill,tadTcrA vaN
xafrinly .frovi tetmenta.Uon ttre.14,- yitbetir -,-thbrer irdwrtali-
merivaei dral..x.4 on tupp:IL.e, of fc. o he et deTelopeient.e include, The
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produdioa alcchol from wed hrdreeeeele ei4:1 hate4- from refinery gaees.
limited amount ef eubbee beeira rueee as a, buta.dieneistyrene Copolymers sied.lar
to our Government Rabber Styrene (CM), Sne%11 amounts of "cold" rubbee C T1 oil
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extended rubber have also been peodueed of late, Attempts at taidng black master,
batch synthetic have been noted bet, this precess is not known to be in eeemercial
use. Since diviteel rubber is ieferier to CrtSs., the Russians are interest.ed in the
latest methods for producing GRS which will. aeable them to make both types of
rubber in the same plant. Furthere, from the cost data, which have been publisheis
Soviet synthetic rubber is much more expenseve than natural reeber. There is no
doubt that the Comenuniets hope to improve the quality En d cost of their ey ntltetic
rubber through the acquisition of the :Latest VS technology. Not the Inset of the
advantages to be derived from this technoloey would be the iaformation pined cn
automation and instrumentation of synthetic rte:ter production p which knewl.edge
would be transferable to other 1pr:ejecta0
There has been no indication in the Soviet technical literature that synthetie
rubber is actually used as a binder .'or misoile peopelLante.
114 Mo.I.Itzehm
The Soviets claim to have three planes eiL'oducing foam sheets althouee the raw
material used is not stated. It, ii probable that the bulk of foam sheet made is
from polreinylchloride, The term "porolon" is similar to both the German and
Russian terms for "porous," so it. es aesueuel that "porous moleopren" is re ant.
15. sjapits
The largest oileproducing area in the U3SR is the Second Baku Field which
yielda high-sulphur crudes. The Russian effort to purchase a, small sulphur
extraction plant from the United States appea.rs to ba motivated by the expectation
that the technology involved would be trareferablc to other processes, It would
seem that the Russians would be in?eeeeeted tn applying the ad-yen:led technolofee
used in purifying ethylene to the purificatton of ether petrol:eon products.
16. Carbon Black
The Russian primary interest in. eerbee ;-.)1,,eck Is the impromment of their tires5,
the quality of which is low by .VS Oteuelards? More than half eheir tire failures
are attributed, to poor treed_ quelity.? For ;he past several years the Russians have
been &tempting, to improve this defeceency. Supplies of high abrasion black would.
definitely- help:, A eritish indestriel messlon to the USSR in June 1957 was
pproAched to sell a carbon plant to supply 10,003 tons a year of high ebrasion
furnace blacie, One of the cbjeet,'.ve.: of the Sixth Five-Year an (3.956-1960) vas
to place such a plant in productive!.
14.-j_smantes
The Russiar claim to have started tee:production of foamed. polyurethane
1957? The volume is unstatcd? hut IA prOba. b-b- smells since in 1956 the seieneests
6
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responsible for developing the proeess were criticised for delaying prodaetion by
their failure to deliver technical data to the plant. There have been re report
of the production of di-isceyanates being made in the USSR, although it is knobn
that the East Germano were conductIng research on these materials in 1955,
18. Titanium Dioxide
Soviet technology in the marsfactare of this material is reported bc be abetA
on a par with that of the US 0 although there have been complaints in the Sov1et
press on the pigment quality of domeetic titanium dioxide. Their raw materiels
supplies are practically urainited, No strategic advantage ce,n be seen in with.,
holding the export of a plant fer making this product.
7
2111. .10 ?S'
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