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

'''FIGURE 11. Part of press section in newsprint machine built by AB Karlstads Mekaniska Verkstad, one of the largest and most highly regarded paper machinery builders in the world (U/OU)''' (photo)

exchange for Sweden, accounting in 1971 for over 44% of all Swedish exports of electrical machinery and equipment. L.M. Ericsson, which accounts for the lion's share of these exports, is concentrating its sales activity in less developed countries such as Colombia, Mexico, Saudi Arabia, and Kuwait.

Sweden manufactures a wide variety of household appliances and, with the exception of radio and television components, is able to satisfy most of its domestic needs for these items. The principal Swedish manufacturer of household appliances is Elektrolux AB, controlled by ASEA as a result of the 1962 merger of Elektrolux and the ASEA firm, Elektrohelios. Elektrolux, which produces primarily refrigerators, is well known in foreign markets through its exports and the activities of its network of manufacturing subsidiaries.

The Swedish electronics industry is still heavily dependent on imported components, particularly semiconductors and integrated circuits; local production of solid state circuitry and microcomponents is limited by the small domestic market, the shortage of labor, and high wage rates. As a result, domestic production of electronic equipment is primarily an assembly operation.

b. Transportation equipment

Sweden's output of transportation equipment is highly diversified and includes automobiles, trucks, buses, and motorcycles; merchant ships, primarily tankers and cargo carriers; and railroad locomotives and rolling stock. Specialized military vehicles, naval vessels, and military aircraft are also manufactured.

With an output of 317,000 units in 1971, Sweden ranked twelfth in the world as a producer of motor vehicles. The country produces most types of motor vehicles for civilian and military use. Two manufacturers, Volvo AB and SAAB-Scania AB (formed in 1968 by the merger of SAAB and Scania-Vabis, which was mainly a producer of trucks), control Swedish vehicle production. Volvo is the larger firm, producing passenger cars, trucks, buses, and military vehicles at plants in Goteborg and Torslanda. In addition, Volvo performs assembly operations at subsidiaries in 10 countries. SAAB-Scania, Sweden's principal aircraft and missile producer, also produces passenger cars and trucks. SAAB started producing automobiles in 1950 as a stopgap measure during a slack period in aircraft production, and passenger car sales became a major source of its revenues.

Sweden is also a leading shipbuilding nation, ranking second only to Japan. In 1971 it produced 49 ships aggregating 2.0 million gross registered tons (g.r.t.) and worth US$446 million. Swedish owners took delivery of 20 vessels, aggregating 537,000 g.r.t. Of the 29 vessels exported, 11 vessels (580,000 g.r.t.) went to the United Kingdom; 10 vessels (574,000 g.r.t.) to Norway, traditionally Sweden's chief ship customer; and the balance to various countries, including West Germany, France, and the U.S.S.R.

During the past decade Swedish shipyards have been expanding and modernizing their facilities. Improved efficiency has been largely responsible for Sweden's ability to remain competitive in world markets despite high and rising labor costs and the necessity to import steel plate and structural forms. Gotaverken Shipyard, Goteborg, in addition to its older facilities, operates the automated Arendal Shipyard, one of the world's most advanced. The recently completed expansion of the Koekums Shipyard at Malmo enables this yard to construct ships up to 300,000 g.r.t. As a result, the Koekums yard led Sweden's shipbuilders in tonnage produced in 1971, delivering six vessels totaling 750,000 g.r.t.

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