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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090018-7

'''FIGURE 7. Loussavaara mountain in the Kiruna iron ore field is scarred from old open pit mining, although today miners work underground. The railroad crossing the frozen lake carries ore from the Lapland deposits to the port of Narvik, Norway. (U/OU)'''

Granges AB Strassa mine in early 1966. Coke-fueled blast furnaces account for about 90% of the pig iron production; they rely heavily on imports for their supply of coking coal.

Sweden's steel production has risen more rapidly than its iron ore output in the postwar period. Between 1960 and 1970, production of crude steel grew by more than 70% and the manufacture of finished and semifinished products, by almost 80%. Sweden's production of iron and steel products is shown in the following tabulation, in thousands of metric tons:

Sweden's small but well-developed steel industry also produces over 180,000 metric tons of ferroalloys annually and is known for specialty steels such as quality steels for ball bearings. Production of ferroalloys is based on small domestic deposits of silicon and tungsten ores, supplemented by substantial imports, particularly of chrome ores and manganese. Output of ferrochromium accounts over over one-third of total ferroalloy production. Sweden is an important producer of stainless steel, ranking roughly on a par with West Germany. Avesta Jernverks AB annually produces approximately 70,000 tons of stainless steel, 70% of which is exported. Over half of Sweden's high quality, low-impurity steel alloys are exported. Ferrosilicon and ferromanganese production is also significant.

The iron and steel industry is composed of a relatively large number of small to medium-sized companies and plants. Many of the companies are integrated from the production of pig iron through rolling-mill products, and several produce specialty steels that are processed through the final stage of fabrication within the corporate structure of the company, although the various operations may be at different locations.

The Swedish iron and steel industry has suffered from a dampening of European demand. The LKAB mines, for example, delivered 13% less ore than company officials expected in 1971, and inventories piled up throughout the industry. The December 1971 currency realignments aggravated the situation, raising the relative cost of Swedish ores in comparison with ores from Australia, South America, and West Africa. Stimulating orders in 1972 and 1973, however, are the long-term contracts signed in 1970 between Swedish suppliers and Polish and Japanese customers. Increasing ore prices are partly compensating for the loss in sales volume. Moreover, industry forecasts indicate a heavy concentration on cold-rolled and

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090018-7