Page:NATIONAL INTELLIGENCE SURVEY 18; CZECHOSLOVAKIA; THE ECONOMY CIA-RDP01-00707R000200110014-8.pdf/18

 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110014-8

metallurgy have declined from 14%-15% in the early 1960's to 7% of 8% during 1968-71. Even in absolute terms, and measured in comparable prices, the amounts invested annually since 1966 have been less than during the early 1960's. The cutback in investment has left its mark on the industry. Czechoslovakia retains its traditional competence and skill in iron and steelmaking but has not kept pace with world trends in blast furnace, oxygen steelmaking, and rolling mill technology.

About 90% of the productive capacity of the iron and steel industry is concentrated in five plants each with a complete production cycle from pig iron to finished steel products. The largest plant is the Klement Gottwalf Steelworks in Kuncice nad Ostravici with an annual crude steel output of more than 3 million tons. The newest plant, the East Slovak Ironworks at Kosice, has an annual steel output of 2.5 million tons and is scheduled for expansion to 4 million tons by 1975. The three remaining integrated plants at the Trinec Iron and Steel Works in Trinec, the Vitkovice Iron and Steel Works near Ostrava, and the United Steelworks at Kladno with estimated annual steel outputs, respectively, of about 2.5, 1.5, and 1.0 million tons. The United Steelworks is currently undergoing a major expansion.

Czechoslovakia is the largest producer of alloy steel in Communist Eastern Europe. Although it produces most types in quantities sufficient to meet domestic needs and to allow for exports, it still must import some special-purpose alloy steels (e.g., stainless steel tubes and some high-speed tool steels). Alloy steels are produced primarily at the United Steelworks, the Klement Gottwald plant, the V.I. Lenin Skoda Machine Building Plant at Plzen, and the Sverma Iron works at Podbrezova in Slovakia. Production of ferroalloys has been greatly diversified since 1966 when blast furnace ferromanganese accounted for the bulk of output. Now 85% of output is of electric furnace alloys, including ferrosilicon, ferrochrome, and silicochrome products mostly at the Clatebne Metallurgical Works in Slovakia. In addition, the Sokolov Chemical Plant in western Bohemia produces ferrotungsten and ferromolybdenum.

Czechoslovakia also has a well-developed forging industry, particularly for large items of capital equipment. Principal producers of heavy forgings are the Lenin plant, the Vitkovice plant, the Klement Gottwald plant, and the United Steelworks which also is the largest producer of light forgings and drop forgings.

b. Nonferrous metals

Czechoslovakia is also a minor producer of nonferrous metals, relying in imports for most of its requirements. Nonferrous metallurgy, including ore mining, accounts for only 2%-3% of the value of all domestic industrial output and less than 2% of the total industrial labor force.

Domestic output of aluminum, based entirely on imported ore, is the lowest among the producing countries in Eastern Europe. Czechoslovakia has only one aluminum plant, the integrated alumina-aluminum plant at Ziar nad Hronom. The plant is located about 100 miles from the Hungarian deposits of bauxite which provide the bulk of its supply. Its capacity is estimated at about 140,000 tons of alumina and about 62,000 tons of aluminum per year. In recent years, however, the output of metal has been less than 40,000 tons annually. Imports of aluminum, mostly from the U.S.S.R., furnish about two-thirds of the total supply.

Czechoslovakia has three plants producing copper metal, including a combined smelter and electrolytic refinery at Krompachy in Slovakia and smelters at Povrly in Bohemia and in Ostrava. Production of copper has increased gradually to about 18,000 tons per year, but the country is dependent on imports for about three-fourths of its needs; the U.S.S.R. is the principal supplier.

Lead and zinc ores are processed into concentrates at plants near the mining facilities and lead metal is produced in refineries at Pribram and Banska Stiavnica. Annual output in recent years has been about 18,000 tons. Facilities for the production of zinc are located at Teplice and nearby Chuderice, but most of the zinc concentrates are exported to Poland and West Germany. Only a negligible amount of zinc is produced domestically, amounting to less than 100 tons a year. Imports, mostly from the U.S.S.R., provide about 60% of the supply of lead and virtually all of the supply of zinc.

Czechoslovakia is the largest producer of mercury among the East European countries. Completion of a new mercury refinery in late 1969 located at located at Rudnany made possible a substantial increase in production from a level of less than 900 flasks (76 pounds per flask) per year to about 5,800 flasks in 1972. As a result imports of mercury, mainly from Spain, have been reduced sharply and at present domestic production is probably adequate to cover all of the country's needs.

The country's only antimony smelter is located near Vajskova in Slovakia. Current output metal is about 1,300 metric tons. The plant uses both domestic ores and imported ores and concentrates, mainly from Turkey.

Uranium mining operations started in Czechoslovakia in 1946. Since that time about 49,000 tons of uranium have been shipped to the U.S.S.R. and the

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110014-8