INTERNATIONAL BAIeK FOR RECONSTRUCTION AKNf D.:VELOP1iThNTt

RESEARCH DEPART1,1ENT

ERM64

THE IRON AIM STEEL INDUSTRY OF NORW.JAY

Prepared by-: Andretw C. Huang

Apparoved by: Joseph S. Gould FM - 64

March 1, l948 copy .

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

TABLE CF COTENTS

SUNRY

I PURPOSE AND SCOPE

II THE BASIS OF THE NORUEGIAN IRON AND STEEL INDUSTRY

III i W NITERIALS

IV IRON AND STEE PRODUCTION AID CAPACITY

V DOESTIC IRON AID STEEL RUIRr240iTTS

VI LABOR SITUATION AISD PRODUCTIVITY

VII FOREIGN TRADE

VIII THE EBPANSION PLAN

APPENDIX

Table I Production, consvmution, imports and exports of iron and steelII _ Production of iron and steel 'oy products, 1937-43

III - Principal imports and exports of iron and steel. 1938-44IV Principal iaports of iron and steel, by countries of origin,

1938 and 1944V Principal exports of iron and steel by countries.of destin-

ation, 1938 and 1944VI - Imports of chrome anec manganese ores by country of origin,

1938 and 1944VII - Value of iron and steel imports and exports by country of

origin, 1942-44VIII - Actual irmports cf iron and steel by product, 1945-47

IX - Actual exports of iron and steel by product, 1945-47X - Hard coal supply and conaurption

XI - Actlual imports of hard coal by country of originXII - Estimated requirements of hard coal in Norway by major

industriesXIII - Col,e stapply and consumptionXIV - Consumption of oil and refractory materials in Norwegian iron

and steel industryXV - Estimated mining equipment requirements of NorwayXVI - Employment inde- of ores metal, iron ancd steel industries,

1943.-45XVII _ Living conditions of mining aiac'. metal wrorkers, 1938-44

XVIII - Hourly wages of mining and metal workers, annual averageXIX - Labor force and number of establishments - Nining, iron

and metal industriesoXX - Employment of mining industries, 1936-45XXI - Labor :Vorce and number of establishments - Iron and

metallurgical industrry

SIhIRY

1. The Norwegian iron and-steel industry is based on ample reserves ofmedium grade iron ores, cheap hydroelectric power, and an increasingdomestic demand for finished steel products. The industry is very smallfrom the stendpoint of tonnage produced, accounting for about one percentof the total of Western European countries.

2. Norway is the fifth largest iron ore producer in Western Europe wtith anoutpat estimated at 1,,6 mIllion tons in 19386 About 90 percent of thedomestic iron ore production was exported before the war, ohiefly toGaimany as concent;.rates in exchnange for finished steele Only about 30percent of domestic requiremrnets of finished steel was supplied oy thehomne industry,

3. High production costs ancl the relatively low quality of domestic iron ore,along with reduction of capacity through extensive war damage will furtherintensify the baiance of payments problem within the iron and steelindustry itself,. While iron ore exports are not expected to exceed 50percent of the 19j.38 level in futu:ce years, the vol:ame of finished steelimported is expected to be twice the prewar level by 19510

4. Normy is self-sufficient in both pig iron and serp. A relatively highproportion of scrap (about 70 percent in 1938) was used in making crudesteel due to a large domestic supply as compared with total steel pro-ductione

5. Norway produces substantial quantities of ferroalloys using imported oresand is in a good competitive position due to an ample supply of inexpensiveelectric power< Annzual production of ferro-silicon, ferro-manganese,ferro>-hroze, and ferro-silicon-manganese totalled 140,000 tons beforethe war. Practically all of these were exported to Gernany, the U.K.and Belgium-Luxembourg in exchange for finished steel.

6. The iron and steel industry produces all types of cornmercial steel withemphasis on those items required by the domestic construction and sl;ip-biilding industries* However, domestic needs of finished steel are far inexcess of home Froduction, Prior to the war about 70 percent of industrialsteel was supplied by imports largely from Germany*

7. The prewar, existing and prpjected capacitiep of the iron and steelproduction in Norway are as follows, in thousands of metric tons:

a2 8 -9/j,7 19S1

Iron ore 1,7C0 700 1,000Pig iron 45 80 200Crude steel 70 70 100Finished steel 90 90 200

8. The Norwegian iron and steel development plans contemplate expansion ofboth crude and finished steel production. The country, howiever, will notbe self-sufficient in finished products, at least during the next fiveyears on account of heavy reconstruction requirements even if the plan iscompleted according to schedule.

PURPOSE ANM SCOPE

This report is one of a series covering the iron and steeliidustries of the individ-aal Europeen coiuntries and isintended for consolidatioi later in a study of the Europeaniron and steel industry as a whole to determine those areaswith best prospec ts for fut,ire reconstruction and developmentoE iasis -is plac-eId In this report on the maximum capacitywhich is -to be providad for particu,alar types of productsrequired for home consinption and e c'rt0

This preliininary report is based primarily on the Norwegiano.fficial stati,sitical and commnercial books and other govermentreports now available in the Barnk and in various United StatesGovernment agenflies. along with the C.E,ET,C reports andworlring rapers, It isl-b no means complste0, Nvuch essentialaC.:7uiati.aa is lacking, particularly with respeet to existingcapacity for production of specific items of finished steelana probabole domestic reouirements for finished steel infutu!re years, Such inforxmation must be obtained from thesourceo

THE BASIS ;F THE NORWIEGIAN IRON AMD STEML INWIJSTRY

The basis of the iron and steel industry in Norway consists of ample

reserVes of medium grade iron ores and plentiful, cheap hydroelectric power.

Practically all coke required for the industry was imported from tl-e U.KI.,

the Netherlands end Germany before the war. Inefficient operation of the

plants, combined. with high labor costs, places Norwegian iron and steel

products in an unfavorable position in the e=rt market.

Norway is not an important iron and steel producing aantry nor has the

country been self-sufficient as far as iron and steel products are concerned.Production of iron ore had started early in the 16th cdntury when charoalwas used to reduce the iron ore to pig iron. On account of the deficiencyof domestic conl production and high production costs, the country has been

comnelled to export abcut 90 percent of its iron ore in exchange for finished

products to meet domestic requirements with an adverse balance in thle industry.

Production of steel, even in its most active prewar year, amounted to only

about 1 percent of that of the total Western %iTro-ean countries.

Plans are under consideration to expand the iron and steel industry in

Norway because of the currenit stagnation of ore mining due to the decline in

German demand and anticipated increase of domestic requirements for recon-struction purposes. However, because of lack of coal and hig,h productioncosts, lack of skilled labor and for technical reasons, Norway will not be

self-sxxffi.cient as far as finished steel is concerned at least during the

next five years.

Within the industry, iron ore mininR is the predominant branch and it is

ine of the tvwo chief mining industries of the country. Iron ore produ.ctionameunted in vralue to about 28 million kroners or abcut 50 percent of totalcres extracted in Norway in 1938. Pig iron and steel are produced aimost

exclusively in electric furnaces. In additioni, a substantial production and

trade has been developed in ferroalloys, particularly ferro-chrome, which

requiro electric fur-aaces for economic production. In Norway the iron and

steel industry, intncudin; iron ore mining and the metallur-ical industries,is one of the most important, ranking with, forestry as far as national income

and foreign, trad. arb concerned.

-3-

M. .W T

Lo Iron -ore

There are three principal iron ore mines in operation in Norway - theSydvaranger Mines at Kirkenes in the extreme north of the country; theFosdalen mine at Malm and the Rodsand mine at liesset, both in the centerpert of the country.

The ore extracted by the open pit operation at the Sydvaranger mines ismagnetite occurring in Archeaean Gneisses in the form of long bands of varyingthicknesses. Crude ores have an average of 34 to 35 percent iron content,.01 to 07 percent phosphorus, o01 to .07 percent sulphur, .1 to .4 percentmanganese, and .04 to .35 percent titanium oxide. The ore reserves areestimated to be 200 million tons to a depth of 250 meters. The ores concen-trated by magnetic separators yields a product with 66 percent iron content,In 1935, 770 workers were employed in these raines writh an output of 1.3 milliontons of iron ores.

The ores of the Fosdalen mine are a mixture of pyrites and magnetite.They occur in two elongated lenses overlying one ano-ther. The lenses are ingeneral six meters wide with a 70 degree dip and 18 degree pitch. The crecontains about 45 percent iron and is mined underground by the shrinkagestoppage method0 The crude ore is treatecl in man,netic concentrating plantsyielding product with 65 percent of iron content. In 1935, 181 miners wereused to extract a total o, 246,477 tons of crude ores which yielded 142,219tons of concentrates after dressing.

The ore of the Rodsand mines, wihich is titaniferous nagnatite associatedwith some vanadium, has an iron content varying between 30 and 50 percent.

The titanium oxide content is 6.7 percent and the vanadium content .45percent. The mine here is also worc-ked wlith shrinklage stoppage and the crudeore is concentrvted in a magnetic separation plant. The magnetite concentratescon"'ain about 65 percent iron, 2 percent titanium oxide, and .55 percentvanadium. In 1935, 94 workers were employed at the Rcdsand mine with an out-put of 115,341 to;l$ in crude ores which yielded approximately 40,C00 tons ofconcentrates after dressing process* Production in recent years of theRodsand mines is as follows:

Percent of Percent ofSear Production= (Metric tons) IZrogn ConLtent vadium Conten&

1947 30,000 (est) 61-62 varies from .5- .71946 25,000 It 61-621945 1l738 61.5 if

1944 27,879 62.0 t1943 33,671 63,1 111942 33,647 62*0 it

2,931 40.5 It1941 36,073 62.0 t

2,841 40,01940 30,787 62.0 t1939 45,982 61.8 H

Estimated ore reserves totaling 384 million tons of actual ores and1,366 million tons of possible ores place Norway in an inferior position

4 -both in quality apd quantity with respect to Sweden as an iron ore producerbecause the actual iron ore reserves of Norway amount to only about 1/7 thatof Sweden and are of a much poorer qua.lity,

Iron ore of Norway may be classified into four kinds:

(1) Ores requiring concentration, which account for about 90 percentof estimated reserves.

(2) Titaniferous ores.

(3) Direct smelting ores.

(4) Sulphide ores,

Norway's production ol iron ore averaged 103 million tons during 1937-39.Lacking an iron and steel industry of its owm, about 90 percent of its oreswere exported before the war. Total value of iron ore exports amounted to25 million kroner in 1938 wrhich approximated 50 pe.-cent of total ore exportsfor that year, including copper, molybdenum and titanium ores., Germany wasthe chief importer of Norwegian ores, about SO percent went to Germany as oreconcentrates, the rest was divided among the U.4c, Poland, Czechoslovakia,Belgium, Luxembourg and France. During the war, production declined to about20 percent of the 1938 level Jespite German effort, The iron mining industryand export t'brade were virtually at a standstill during the second half of 1945on account of heavy destruction of the mines by the retreating Germanoccupation forces.

Postwmr iron mining industry is experiencing a very serious depressionon account of (1) loss of the German market, (2) lack of effective demand,(3) wage rates have increased while productivity declined so that productioncost is double that of prew-rar. lWages constitute almost 2/3 of total miningcosts so an increase in wages affects the cost of mining to a greater degreethan in most other industries and thereby impedes export possibilities. (4)Norwegian ore contvins a larger percentage of impurities and other metals andthe German smelters were the only ones in Europe that were capable of handlingore of this kind, In the meantime, the only Norwegian mining company equippedto produce concentrates for export -_ the Sydvaranger Company - was destroyedby the Germans and their capacities so far have been only partiallfrrestoredO(5) Shortage of fuel and labor. On the whole, the imports of iron cre arenegligible,

Production in 1945 amounted to only about 107,000 tons and 120,000 tonsin 1946, the latteo- f-iguare being about 13 percent of the 1938 output* Pro-duction in 1947 was expected to reach 130,000 tons. Exports dropped sub-stantially, amounting to 45,000 and 5,000 tons respectively during 1945 and1946 as compared with 28,567 tons during the first eight months of 1947.

Anticipated prod.uction of ore amounts to 260,000 tons in 1948, 750,000tons in 1949, and 900,000 tons in 1951 if the reconstruction program of thedevastated ore mines and the dressing plants can be substantially completedaccording to schedule, Even so, 1951 output of ore will amount only to 60percent of 1938 levels due to the extensive damages to the plants. As -

domestic requirements will only amount to 65,000 to 70,000 tons per year,Norway will have an exportable surplus of iron ores varying between 200,000and 800,0OO tons in the coming four years.

-5-

2. Coal and ,oke.

There are no hard coal deposits in Norway proper. About 90 percent ofthe domestic recuirements for coal are met by imports and the rest by threecoal mines - King?s Bay, Svea and Longyear in Spitzbergen, Prewar pro6uction,imports ancd requirements avetaged about 260:,0009 2 million and 2,3 million torsrespectively during 1935-38 of which onlyr about 11,000 tons was directlyconsurmed by the iron and steel irdustryx, The U.K. supplied about 70 percentand Poland 20 percent, Germany 10 percent of Norway's prewar coal imparts.

Postwar production of coal decreased considerably, amounting to 3,000 and58;,OO tons in 1945 and 1946 re-smectiveiLy,; on account of reduced capacity dueto war damage aind lack of skilJ.ed labor, Although anticipated production willamount to 250 to 40C,000 tons in the coming four years, representing an increaseof 100 percent compared with the prewar level, Norway will still be largelydependent on coal imports due to short mining seasons, lack of ice breakersto facilitate coal transport from Spitzbergen during the winter, and highproduction costs 0 To meet requiurements, coal impcrts will amount to anaverage of 1.6 million tons in the coming four years.

No coke is produced in Norway, all requirements being met by importswhich amounted to 711,000 tons per year during 1955-3$, mostly frcm the U.K.and the Netherlands. Coke consumption by the iron and steel industry amountedto 167,000 tons during 1935-38 out of a total of 711,COO tons of aggregateindustrial consumption.

lio expansion of coke production is being contemplated in the developmentplan of the iron and steel industry in Norway. It is estimated that an annualimport of 720,000 tonp wrill suffice to meet all industrial requirements amongwhich the iron and steel industry will account for 25 percent in 1948-51 ascompared wTith 23 percent during prewar years.

3. e

Norway has Furope t s richest water power potential estimated at 92 millionkilowatts all year round writh 80 billion kilowatt hours available for develop-ment at low cost. The chief reason for its favorable position in the develop-ment of cheap hydroelectric power for indtustrial uses are:

(a) 60 percent of the waterfells have high heads of 300 meters or more,

(b) plenty of lakes are available for construction of reservoirs atlow cost,

(c) ample solid rocks are available at the site of the dams and thepower plants,

(d) the majority of the powrer plants are located in or near deep, ice-free harbors - thus the supply of electricity is available all yearround.

During 1937, power production in Norway averaged 3,189 kwh per person asagainst 1,022 kw^Jh in the United States and 622 kwh in the U.K. Total capacityof water power at the beginning of war was estimated to be 11.6 billion kwh.This was increased to 12.4 billion kwh by the end of the war, of which only80 to 90 percent wes actually utilized due to poor rainfalls for several years.

-6-

The reconstruction program contemplates the development of hydroelectricpower on which expansion of heavy industry, including the projected iron worksin Mo in Ranam, are deperdent. A lO.year program involving an expense of 443million U.tS. dollars has been proposed for increasing generating capacity ofelectricity by 100 percent, thus bringing Horwayls total capacity to 7,2million kilowatts as againsl the present 3o6 million kilowatts to meet theincreased industrial demand and electrification plan of postwar Norway.

4. &JaR

Nonray had ample scrap to meet domestic demands before the war. Homesnipply in 1936 amoulnted to 80,,000 tons of wrhich only 74,000 tons was consumed1,r d-z-est-Le industry and the 12,00C tons wras exported. Of the high gradescrap iron consumed at home about 75 percent was in steel making and the restin ferroalloys. The latter is a very importnnt branch of the industry. Aspig iron supply is very limited, a higher proportion of scrap is generally usedin steel than in some other counitries. For instance, during 1938 the scrapproportion amounted to about 70 percent in Norwegian finished steel as comparedwith 49 perce4t in Sweeen ancl 50 percent in United States practice.

Germany was Norwzay's principal export market for scrap iron w-ith a totalintake of 5,670 tons or about 31 percent of the total in 1938 while the U.K.and Poland shared an ec-ual amou;nt of 3,670 tons or 40 percenit, The balancewas divided among the Iet:herlands, Czechoslovakia and Sweden 0 On the side cfscrap imports Germany again was the chief supplier whose exports to Norwayamounted to 5,480 or about 83 percent of the total of 6,594 tons in 1938. Therest came from Denmark 0

No substantial change in the volume of domestic scrap supply has beenreported in postwar Normay. During 1946 a total of 86,000 tons of scrap wascollected from various domestic sources as ageinst 68,000 tons of domesticrequirements anC. 18,000 tons exports. Accor6ing to official estimates,approximately 799000 tons was to be collected in 1947 of which 73,,0C0 tonswas allocated for honme consumption and 6,000 for export. (Actual export ofscrap iro:a amounted to 4,712 tons for the first eight months of 1947). Althougla very liinited quantity of screp was imported for production of common steelbefore the war, chiefly from Germany and Denmark,l postwrar scrap imports havebeen rirtually stopped due to the worldwide shortage.

The future position of Norway with respect to screp will be somewhatchanged in consequence of greater demand for it in steel making, while homesupply is expected to remain at 1938 levels during the coming four years itsrequuirements are estimated to increase by 10,000 to 30,000 tons during 1948-51.Therefore. Norw-ay may have to import aboqt 13,500 tons annually to make up thedeficit. As Norvay used to be a net exporter of scrap iron before the war, itselimination as such in the future wrorld iron narket will tend to aggravate theshort supply situation of a material which is in great demand throughout theworld.

5. Allgviri mAr&tl.

(a) g - Norwray has no manganese ore procluction and is thereforeentirely depending on imports for its ferro-manganese production. Imports in1938 amounted to 124,000 tons. The principal supplier was Belgian WesternAfrica with 98,300 tons accountlng for 80 percent of total followjed by U.S*S.R.and Chile each supplying ab.'ut 11,000 tons. The balance wias divided among

-7-

Belgian Congo, Fepch Morocco and India. Postwrar imports of manganese orehave decreseadt by a considerable quant,ity, amounting to 10,556 tons in 1945and 47,996 tons in 194S. A total of 60,053 tons wras imported during the firsteight months of 1947 as against the anticipated total of 58,000 tons for thewhole year. Projected imports amount to 74,000 tons and 80,000 tons in 1948and 1.949 respectively, followed by a total of 125,000 tons in 1951, whichamount will approximate N1ornuayls most active prowar year level in manganeseore importL anxc consumption.

(b) F ore - Ferro-chrome is one of the most important alloysprcducod inl Norwray besides ferro-man.ganese. As domestic production from afield of Alivine rock east of Roros is very much liridted, most supplies areimrorb'ed, Total irports amounted to 50,022 in 1938 of wh'nich'i 28,423 canme fromRhodesia, 12,925 from Turkey and. the rest from British India. As in the caseof manganese ore, postwar unports have decreased considerably on account ofloss of Ge-rmn market writh no imports being registered in 1945. In 1946imports only amounted to 9,925 tons followed 1by 34,471 tons in the first eightmontns of 1947t

6. SlafXngj materials

Noriay is enti:ely self-sufficient as far as slag forming -naterials areconcerned witlh adequate supplies of limestone, silica and simi;ar items.

- 8-

IV. IRON AID STE2L PRODUCTION CAPACITY

1. PiT iron

Prior to the war Norwayts production of pig iron reached 37,000 tons in1938 as against a total consmuption of 23,000 arxl a net export of 15,000 tonsin the same ysaar. Of the 27,326 tons of Norwayts pig iron exports, Frencetook 7,006 tons, the U.K. 6,249 tons, Gernany 3,918 tons and Sweden 2,330 torB.The rest wras dlivided among Belgium, Luxembourg, Denmark, Poland, Czechoslova1;:iand Switzerland., Piu iron imports during 1938 axnounte' to 12,071 tons of w-hichBelgium-Luxambourg supplied 2,739 tons, Germany 2,625 tons, follotwed by Swedenwith 2,921 tons, France with 1,365, and the Netherlands with 1,901 tons. Therest came from the U.K. and other countries.

Postwar sup.ply of pig iron increased in 1946 to $O,000 tons on account ofaccumulated stocks and inCreased' pro.Uction capacity through the acquisitionof ex-German iron wjorks, About 36,000 tons was allocated to domestic industryand 45,000 tons for ex,Cport. Anticipated production in the period 1948-51amoUnts to 52,000 to 54,000 tons annually. As hone requirsavents wrill accountfor 35,000 tons, Norway will have 20C,000 tons of pi- iron per 'yeEar as export-able surplus during the coming four years. On the whole, postwar imports ofpig iron are unimportant.

Pig iron in Norway is producedC chiefly by the Christiania Spigerverk atOslo and the Bre,mngerc:raft-Sels1ap at Brem,1anEer whe-re electric furnaces areused exclusively. The Christiania 3pigerverk was founded in 1016 by aprivately owined company with an estimated annual capacity of 15,000 tons ofpig iron and is now Norwayls largest producer of iron and steel products withits own smelters and rolling mills. Its output in 194.6 was valued at 25million kroner obtEined with a labor force of 800. It also has a controllinginterest in the following: A/S Blikvalsverk (tinplate, rolling mill) Bergen;A/S Bergen BliktryThkeri (tinplate, stamping mill) Bergen; A/S Meisin-gsetGrube (iron mine) Meisingset; A/S Skoienl:all:brudd (limestone quarry) Lurner.

The Bremangerkraft in Bergen is owned by a private company ancl wias alsofounded in 1916. It is chiefly interested in the procd.uction and export ofvanadiumr-titani= pig iron under the tracle name of 'Veantit". It ermployes 170workers andC lhas electric furnace capacity of up to 18,000 toas of pig ironper year.

In addition, a new compgany by the name ol A/S Aardalsverk in Lake Aerdalwavs organized in 1946 as a result of a government decision to control anddevelop plant fLacilities beloiging to A/S Norci.a,:, a company originally formedby the Germans during the war for the exploitation of Norwegian aluminumresources and seized by the government as enemy property after the liberation.This new iron works is equipped with three electric furnaces in varying stagesof completion, ample storaCe and docking facilities for the transport of ores,and electric plant capable of producing 921,000 kilowratts, located near theTya River, It is estimated that about 30,000 kilowratts will be sufficient tooperate the aboVe three furnaces. The government has decided to utilize thesethree furnaces originally desirned by the Germans to produce aluminum for thesmelting of vanadium pig iron. The first furnace, vith a capacity of 3C,000tons, wras expected to be ready for operation by the middle of 1947 using10,000 kilowatts of electricity. The limestone can be brought in by ship fromthe Glaerum Kalk'stein Grube at Surna which was also an ex-German firm nowzownecd by A/S Aardalverk. Althou-h no fiurther proceising of the vanadium pig

-9_

iron will take place at the Aardalverk, efforts will be made to separate thevanadium in the melting. The use of Soderberg electrodes in the iron orefurnace is also being contemplated.

On October 13, 1946 a twenty year contract was reached between thegovernment-owmed A/S Aardalverk and Christiania Spigerverk for the annual prowduction of 25,000 to 30,000 tons of .3 to 5 percent vanadium pig iron in oneof the three electric furnaces of the Aardalverk, According to the arrangementthe Chbistiania Spigerverk and the Bremangerkraft Selskap were to provide thenecessary iron ore, chiefly from their jointly owned mine A/S Rodsand Gruber,ancd the Aardalverk wrould procluce vanadium pig iron. Of the projected annualproduction of 25,000 to 30,000 tons of vanadium pig iron, Christiania Spiger-verk would receive about 5,000 tons for its own use and the renainderiDu.ld besent to the Bremangerkraft Selskap for export to the Europecn rnarket. Theagreement also provided for the similar use of the second furnace expected tobe completed pending completion late in 1959 with an annual production of25,0CO to 30,000 tons of pig iron. The third furnace could also be brought intooperation at some future date but no definite plans have been made for itscompletion and use. This agreement is of great advantage to the Christianiacompany although it means shutting down its own relatively high cost electricfurnaces near Oslo with an annual production capacity of 14,000 tons ofvanadium pig iron. The new arrangement would greatly reduce its pig iron costthrough the use of cheaper and more abundant electricity available at theAardalverk and the more efficient production as well as the lovTer transportcost resulting from Aardel ts deep water proximity to the iron ore mine atRodsand Gruber of which Christiania is one of the chief shareholders,

This development has also a great bearing on the Norwegian nationaleconomy for firat of all it would provide pro2ttable wor% for the state-owmedAardalverk electric furnaces, The transfer of the Christiania iton srmeltingoperation to Aardal will also give some relief to-the over-taxed electricpower net in the Oslo area. The smelting at Aardal will provide permanentemployment for some 100 to 200 w¢orlkers in the labor surplus area near Aardaland will thus increase the production of an export item which will provideNorway with much needed foreign exchange.

2. Sponge iron

Production of sponge iron in Norway is negligible due to the impurity ofdomestic iron ore and the favorable supply situation of iron scrap.

3. Iron and steel castinsgs and forgings,

Data are not available as to the actual capacities before the war but itis generally known that Norway was on a deficiency basis. The industry pro-duced in 1938 about 20,000 tons of castings directly from electric furnac3s,most of which was consumed by the household appliances, automotive, shipbuildingand railway equipment, and structural industries. It is estimated that all ofthese items are in short supply anct wJill be in demand during the reconstructionperiod both at home and abroad.

In 1938 the iron and steel industry produced about 25,000 tons of ironforgings all domestically consumed largely in the shipbuilding, railway andconstruction industries. Information is lacking concerning capacity arri pro-duction of Norwty to produce forgings but it is estimated that Norway ispracticeally !Ielf-rufficient as far as forgings are concerned ercept for some

_ 10 -

specialty items such as large fcrgings for heav motors and similar items.

4. RLw s.teel

Norway produced about 65,000 tons of raw steel in 1938. At this levelthe industr-y was operating at about 90 percent of potential capacity. Pro-duction in the period 1945-47 averaged 53,000 tons at 70 to 8e percent ofcapacity diue to fuel and labor shortages. iat steel in Noralay is producedentirely by electric furnaces on account of cheap and ample electric powersUw-ply in the country. In this respect Norway is in a very favorable situationsince most of its power plants are located in ece free, deep sea harbors andthe supply is avai.lab?ls all the year round so it does not have to curtailoperatQion during the winter seasons as Sweden and other iron producingcountries using hydroelectric power.

Norwray has always used a relatively high percentage of scrap in steelmaking due to its large domestic supply as compared with Sweden. In 1938 theproportion of scrap used in steel was about 70 percenat. Since the war th6 per.cent'age has dropped to 60 percent on account of shortage of' scrap in 1946 butit is expected to increase to prewar ratio again in 1948 and remain at thislevel thereon. This practice can probablyr be continued by the Norwegian ironand steel industry so long as consumption does not exceed domestic supplies.

Raw steel imports amounted to l8,000 tons in 1938 as domestic supply wasinadequate to meet industrial recquirements. Raw steel exports are negligible.

The Ncrwe-ian iron and steel development plan contemplates an increasedproduction capacity of electric steel by 3,000 in 1948, another 5,000 in 1949and 21,000 in 1950. Therefore, by 1952 its production will be raised to92,C00 tons as against a total capacity of about 100,000 tons per year.

5. R dteel

Norwayls production of finished steel consists of all types of commercialsteel with emphasis on those types required by the construction and ship-builOing industries such as plates, sheets, wirs, nails and* bolts. Rollingmills for the manufacture of such articles represent about three fourths of thetotal capacity of the country. In general, the rolling mills are operatod inintegrated steel works which also produce pig iron and raw steel, such as theChristiania Company.

Norway is on a deficiency basis as far as finished steel is concerned.In 1938 production amounted to 80,0CO tons and consumption to 240,000 tons.The deficit of 160,000 tons was made up with imports of which 50 percent camefrom Germany, the rest being supplied by Belgium, Luxembourg, France, Swedenand the U.K. Exports only amounted to 8,000 tons in 1938 of which 5,000 wentto Sweden, mostly as tinplates and 3,000 to the U.K., Netherlands, GermanyBelgium and Luxembourg as bars andbillets.

Production in 14,/+6 and 1947 was about 60 and 70 percent cf 1938 levelson account of fuel and labor shortakes while imports amounted to 55,000 torsin 1946 and Increased to 185,000 tons in the first. eight months of 1947.PostwJar exports of finished steel are negligible.

The gove-nment is contemplatlng an expansion of rollin, mill capacity ofplates, shefts and angles from the present 90,0O0 tons per year to a total of

-11w

200,000 tons in 1951 as against an anticipated output of 120,000 tons of rolledproducts in the seme year.

The increased capacity will be realized as soon as expanded facilities ofthe Christiania and the new! iron works started at Mo in Nar thern Norway inSeptember 1946 are completed. However, as reoquireiments are anticipated at 2to 3 times the projected domestic capacity, Nca'way will still be dependent onimports for finishec steel at about 350,000 tons per year during thereconstruction peiiod even if the expansion progra.m con be completed accordingto schedule,

The rolling facilities are concentrated in a few relatively smal1 iron andsteel works of which the A/S Christiania is the largest and the most important.Its annual capa.city is estimated at 50,000 to 60,000 tons and its specialitiesinclude nails; tcks and other similar items. Some 800 wuorkers wrore emnployedin 19460 In addition, a new state-owned company by the mme A/S DetnorskiJernverk was established in 1946 near Mo at Ranan in coordination with Norwaytsiron and steel develo-poment plan and is expected to change the structure of theiron anc.d steel industry substantially wrhen completed. Its initial rolling millcapacity was set at 200,000 tons per year, chiefly of plate, sheets, angles,and similar items using electric power supplied by the state-owned Glomfjordpower station.

6. hrEallov

A substantial ferroally industry has been developed in Nonray on accountof the abundant supply of inexpensive electric power. Production inclufdesferro-silicon, ferro-manganese, ferro-chrome and ferro-silicon-manganese, exportof te first two being of particular importance in the balance of payments,Total production of ferroalloys amounted to 140,000 tons per year during1937-39, of which ferro-manganese accounted fpr about 55,000 tons, ferro-silicorabout 40,000 tons, and ferro-chrome about 10,000 tons. Practically all of thescwere exported before the war to Germany, the U.K., Belgium and Luxembourg.

Norway is dependent on chrome and manganese ore imports as these ores arenot produced in the country. MEnganese ore imports amounted to 124*,000 tons in1938, chiefly from Belgian West Africa. In the same year some 50,000 tons ofchrome ores were imported, nearly 80 percent of which was supplied by Rhodesia*

Postwar production and export of ferl-oalloys have decreased by 50 percentowing to the shortage of fuels and loss of the German marketq Exports offerro-manganese, ferro-chrome, and ferro-silicon amounted to 14,C00, 4,6C0 and21,000 tons in 194,6 as against 50,000, 12,C00 and 33,000 respectively in 1938.Imports of manganese ore in the first eight months of 1947 have increased to60,000 tons, about 50 percent of the 1938 level, as against 48,000 in 1946,while chrom3 ore imp6rts have increased from 9,700 tons in 1946 to 35,000 tons,about 70 percent of the 1938 level in the first eight months of 1947.

- 12

V. DOMESTIC IRON AD STEEL RMIRPMENTS

Consumption of finished steel in Nonjay amounted to 242,000 tons in 1938

and decreased rpidly during the war with the result that only 100,000 tons was

cQnsumed during l945, Consumption in 1946 was estimated to be at 1938 levels,

In general domeve&:i consuaption is divided into the following categories:

(1) Te nechr caniml untiU - The mechanical industry is the largestconsumar of steel, Although this brancl of the industry is very diversi-fied with respect to types of products manufactured, -operations arp on a

small scaie as compared with most European countries. Steel consumption,of which about 65 percenit was normally imported before the war, is running

at 2502000 tons per year at the present time, The mechanical industryproduced all kinds of domestic requairements including heavy and lightequipment such as diesel and gas motors, telephone and telegraph equipment,

steam engines, transformers, cables and appliances, bicycles, and machine

tools of various descriptions.

(2) Jii- Llsp - At the present time the building industry is

absorbilng finished steel at the rate of about 100,003 tons per year ofwhich stainless and gaImanized steel plates are in particularly activedemand because of apar-tment buUiding which was deferred during the war.

It is anticia.pted that the induastry will require steel in increasingquantities during the reconstruction period.

(3) __a_ and automotive Industries - The rails, locomotive, freight

cars and autoaxnobile industries are also among the important consumers of

iron and steel b6th during normal times and the reconstruction period.Large tonnages are required for rals2 locomotives. freight cars, struct-

ural steel for bridges, castings, shapes and sheets for locomotives, androlling stock, In 1938 production of rolling stock, locomotives and auto-mobiles was valued at 15 million kroner. It is estimated that thisindustry will require an annual tonnage of 30,000 tons for the next fiveyearso

(4) Sib i md r5 - Shipbuilding is one of the chief consumersof steel in Nonray, In 1935 about 35,000 tons of steam and motor shipsvalued at 37 million kroner was under construction. Since prewar con-

sumption averaged 160,000 tons annually, a further need of 200,000 tonsof steel per yeer will be a conservative estimnte during the next fiveyearso

With the information now available, it is not possible to anticipatedomestic requirements in Norway beyond the reconstruction period. During t4isperiod which will last probably from four to five years, there is little doubtthat the projected increase in the outpult amounting to 120,000 tons of finishedsteel per year will n6t be adequate to meet domestic demand even if the planfor irvo and steel expansion can be sudeessfully carried out. Granting thatits normal requirements will be established at the 1938 level, Nonrway,beginning in 1951, wtill still have to import at least an amount equal to itsown projected output of steel after reconstruction needs have been met.

- 13 -

VI., LABOR SITUATION AD PRODUCTIVITY

In common with most European countries, Norway is also confronted. with aserious labor shortage, This develonment is not due to a reduction of industrialworkers employed as a whole, which in the first quarter of 1946 numbered about170,900 as against169,600 in 1938, but is chiefly a consecuence of theimmobility and friction in the shift of labor from depressed industries withsurolus labor due to a falling supoly of raw materials and diffi,cult mark.-etprospects after the war, to those branches of industry which are enjoying apostwar boom on account of the great reconstruction and export demands butwhich are undermanned.

In 1938 about 2,600 miners were employed in the iron ore industr.1 asagainst a totn.l of all mininz labor forces of 640ooo. During the war itonmining employment remained at a high level despite a dropnzing output. It wasonly after the liberation that employment declined drastically numbering 429in 1945 and 500 in 19L'6.

The labor efficiency in Norweegian iron ore industry was very low comparedwith other iron producing countries. In 1938 output per rminer per year wasabout 600 tons, which -olaces Yorway in a veigr unfavorable position comparedwith the 1,600 tons per year per miner in Sweden and 1,1400 tons in France. Thefailure of the postwar emrployment to fall in the same proportion as iron oreoutput implies a further dron in labor efficiency which decreased to about200 tons per miner per year in 1946 or by one third of 1938 performance. Theprincin,l causes for the lower productivity in the iron ore industry in Norwrayare the reduction of capacity through war damage and continued employment ofminers not able to wrork to capacity due to lack of facilities.

The surplus of labor in the displaced iron ore industry does not sffer asolution to the labor supply problem of the iron metal innustry becausetransfer of mine w,,Torkers betw,seen industries is very difficult on acecunt of(1) difference in occupxational skzill, (2) shifts of labor between inlustriesin different localities often involve movement of the entire family which isdifficult to effect successfully because of the country's -eographical natureand the housing shortage, (3) the unwillingness of many workers to leaveaccustomed conditions. For rensons like these, displaced miners in NorthernNorway do not consti-tute a potential labor force for the undermanned iron andsteel industry in Western Norway.

In spite of the tight supply situation, the labor force in the iron andateel industry was increased during 1946 to 60,000 compared i7ith 46,00c in 1944nnd 40,000 in 1938, on accmunt of the expansion of the inCustry to meet thereconstruction demand. Labor efficiency in the iron and steel industry isvery low even comrpnred with Swedish standards.

At the present time, there is still a strong demand for manpowrer withoultrelief in sight, particularly in skilled and young workers in the iron andsteel industry. At the same time, local unemployment in the Northern miniingdistrict still persi)sts on account of continuously low activity in the oremines due to lack of export demand.

On the whole, Norwayts postwar labor situntion has been more favorablethan most European cQuntries where production has cznstantly been subject tocontinual labor unrest since the end of the war. This indlstrial peace was

achieved through successful price axcl wage policy agreed upon and supportedby all parties including labor, management, and goverment, xhich permittedsimultaneous price and. wage adjustments anc' has, therefore, assured a fairlystable standerd of living. As a result of this satisfactory relationshlipbetwreen labor and i-anagerment, Non-iayts industry had alreedy reached prewJarlevels in 1946.

- 15-

WI. FORIGN TRADE

The prewar pattern of trade in the iron and steel industry of Norway wascharacterized by the import of manganese and chrome ores, crude andl finishedsteel, in exchange for lowr grade iron ore, pig iron, ferroalloys and scrap.The balance of payments as far as trade of principal iron and steel* productsare concerned in 1938 is shoin in the following table, in million kroner:

L^T 4 Imn(jLots ,}e.t LEeot

Manganese ore 9 Iron ore, 23Chrome ore 5 Pig iron 3Iron and steel products _7 Forroalloys 2.6To-tal 61 Total 52

Exce of rtover eort 9

It is therefore evident that the trade pattern of Norway's iron and steelindustry was, on the whole, wunavorable and the deficit had to be covered bywood and paper exports. which normally provided Norwayls major source of foreignexchange.

In 1938 about 80 percent of manganese ores was supplied by Belgian WesternAfrica Xnd 60 percent of chroime ores by Rhodesia but Germany was of primeimportance as far as Norwuayls iron and steel trade was concerned, in view ofthe fact that it was bot1h the biggest supplier and consumer of Norwegian ironand steel products. Of Ncrwayis exports over 90 percent of ore and 70 percentof ferro-silicon was exported to Germany. On the other hand, more than 50percent of Norwayls total iron and steel imports was dependent on Germanexports.

The postwar pattern has changed substantially due to the changed positionof Germany, The low production ad export of iron ore is mainly attributableto the lack of German demand so is the stagation of Norway t s ferroalloyindustry which was supported by the export demand of Germany, Belgium, the U.K.and the U.S. before the war. In addition to the loss of the German market, the'industry of ferroalloys is also confronted with problems of Increasing U.S.and U.N. competition and the tight exchange position of Belgium and otherconsuming 6Qunitries. Unless Gernman production can be substantially increasedin the next few years and ore requirements of the U.K. increased, recovery ofiron ore mining even to the lowered level contemplated by the government willbe greatly delayed.

Some significant developments in the Nonregian postwar iron and steelindustry that will decidedly further wreaken its trade position within itselfand its related industries are the reduced capacity of iron ore production andexport as a result of the extensive war damage, and the increased import require-ments of finished steel, While iron ore export is not expected to exceed 850,OCtons by 1950 or 50 percent its prewar level, the volume of finished steel importis anticipated to be twice the 1938 level or 325,000 tons in 1951 with6ut anyappreciable change of conditions in other branches of the industry. If thisprogram is to maintain, the adverse balance of payments within the iron andsteel industry will be even greater than before the war, wrhich in turn willresult in a reduction of the supply of scarce foreign exchange, which other ex-ports u&dh as wood and wood products will be able to previde during the comingyears.

* These exclude coke imperts which amounted to 24 million in 1938.

-16 -

VIII. THEEXPANSIO PIAN

Norway is not an iron an6d steel producer of anly importance* The countryhas been largely depen;'ent on imports to meet 90 percent of its normaldomestic requirements. The attempt to develop an iron and. steel inclustry of it"own was mainly stimulated by the postwar staggation in its iron mining industrywhich may develop into a long depression if German ind3ustry is not revived inthe near future.

A decision was reached by the government in 1946 to build a state-owmedand dLirected plan't (Jetnorski Jernverk) with an initial rolling capacity of200,000 tons of -plates, sheet, and angular iron ageainst a probable nead ofaboutG 400,000 tons in 1950. The plants are so designed as to a4cw for futureexpansion of production to meet all domestic requirements for shipbuilding,structural and machine steel. The si'te of the plant was selected as Mo in Ranain Northern NoxMay based on its proximity to the abundant ore deposits inSydvaranger Dmiderland and Fosdalen and cheap electric power from the state-owned Glomfjord power station. Completion of the now plant is expected inthree ancl one half years. The neo plant wrill employ 1,400 worxers of whom thetechnicians and vklilled mechanics will recbive training in Sweden, the U.K. orat home.

It has also been decided to form a joint stock compbny for the constructior.of a pig iron wJorks at Mossoen in the North with an annual capacity of 180,OCOtons to be ecuipped with three electric furnaces of the Nonregian Elkem typetwice as large as any other furnaces previousl!y built in the countryo The pigiron works is expected to be completed 4~y 1951 about one year before the pro-jected steel works is finished.

The following table shows the prewar prr,sent, and anticipated capacity ofthe Nonregian iron and steel industry, in thousands of mettic tons.

1938 1L42 251

Iron ore 1,700 700 100CQPig iron 45 80 20Crude steel 70 70 100Finished steel 90 90 2C0

The consensus of opinion about the iron and steel expansion progrrm isthat on account of the uneconomic character of the project it will not be ableto compete with foreign production on a cost basis and that Norway could gainmore nationally by producing iron ore concentrates for export and confining itsdomestic steel industry to the limit permitted by domestic scrap supplies,while the ore export could easily be resumed without subsidy from the govern-ment as markets develop. In addition, a number of criticisms have been voiced- first, it is generally believed that it should be located in or near Osloor the southvest part of the country in order to realize greater economy intime and transportation costso Secord, production should be concentrated onhigh cuality steel for export instead of cheap low grade steel for domesticconsumption. Third, the small amount of production will be divided among alarge number of different products wrhich is very unprofitable, when theestimated capital expense alone will amount to about 102 kroner per ton. Onthat basis production can be maintained only by import restrictions andprotective duties, a practice which will prove veryharmful to the nationaleconomy.

The extent to which this program will be comapleted is partially rela*tedto the avalability of the machinery and eouipment and partly to the recoveryof the iron and steel industry of other European countries, I1crwtay contemplatesthe completion of the program by 1950 but the feasibility is very dubious ifGermany and the U,K, can reach production levels in time to permit the export£ finished steel to Nornay in exchange for its high grade iron ores atfavorable prices, But all reports ind.Lcate that the expansion program wjill becarried through using the expenditures already appropriatedo

A P P E ND IX

TABLE IPRODUCTION, CONSUDIJTION, IbIPORTS AIRD IXPORTS OF IRON AND STEEL IN NORWAY

(In thousand metric tons)

A ctLal EstAmated

1938 1945 1946 1947 1948 1949 1950 1951

A. Iron orsP roduction 1548 109 121 130 260 710 750 900Consumpt iorL 60 50 55 65 65 65 70 70Imports 1 2 4 32 10 10 10 10 10Exports ./ 1571 45 13 55 200 650 700 850

B. Manianese oreProduction _ - - - - -_

Conisumption 124 11 48 58 74 89 105 125

Imnorts 124 11 48 58 74 89 105 12 5Exports _ _ _ _ _ _ _ _

C. ?ig iron andspeeleisenProduction 37 33 WO g/ 71 -] 52 53 54 54

Consumntion 23 30 36 29 33 34 35 35Imports 12 3 1 1 1 1 1 1

Exports 2/ 27 6 45 43 20 20 20 20

D. Ferro-mangane seProduction 51 1 16 26 33 40 54 56

Consumption - - - 1 1 1 1 1

Imports -iiPxports 50 1 16 25 32 39 53 55

Home supply 80 40 86 79 85 86 80 80

Consumption 74 35 68 73 85> 90 105 105

ir; steel making 56 31 50 55 65 70 85 85

in f erroalloys 18 4 18 18 20 20 20 2(

Impoarts 7 1 - - - 4 25 25

Exports 17 / 5 18 6 - _ - O4

F. Steel (ingot equivalent)Pro iluction 65 34 51 57 67 72 92 92

Cons umption 82 47 52 65 97 101 120 120

Impo; rts 18 13 3 8 30 29 29 29

Bxpo;ts 1 - 2 - 6 - 1 1

rp1,i, I - Page 2

1938 1945 1946 1947 1948 1949 1950 1951

G. Finished steelProduction 82 47 53 66 97 101 120 120

Consumption 242 102 236 388 494 .448 4:39 439

Imports 165 55 184 325 400 350 325 325

Exports 8 _ 1 2 3 3 6 6

lt Hematiteg/ Including exports-frox stock31 Including stock sup-ly

Sources Norwegian Trade and Year Books.C.hih.C. Tecbh.ical Report, Vol. II

TABLEl II

PRODtJCTION OF IRON AD STEEL BY PRIOIDUCTS, IN NOR1WAY - 1937-43(In thousand metric tonsexcept where indicated) 1932 1938 1939 1940 1941 1942 1943

Iron ores 1,075 1,474 1,395 667 628 345 285Pig iron 36& 38 44 37 49 49 48Ferroalloys 145 135 147 110 73 62 97Stoves, chimneys :4. ) 3.5 4 6 9.1 8 8Kitchen stoves 1.9 2 2.5 3.3 2.9 2.5Construction steel 2,2 5-5 4 3.4 2.1 2.7Foundry articles for machines 12.,6 12.8 12,8 10.9 13 11.2 10.4Steel castings 2. 8 2,7 2.7 3.6 2.9 2.2 2.1Other foundry products 12.4 i.4 2.7 2.3 3.5 3.5 3.5Arms r 205 1.4 1.2 1.2 1.1 .8Iron and steel fittings ?,. 1.5 1.9- 1.7 2.2 1.6 1.2Nails 14t9 10.5 13.5 13.8 15.7 12 10Bolts 6.3 7 6.2 6.8 5; 5 4.4Fences, posts, bridges 3.7 $.4 3.8 3.5 3.6 3 2.1Cans, tipplate 3.4 3,4 4.4 2.5 2.3 1.4 1.4iicycles 39* 46* 44* 51* 42* 52* 50*Auto bodies 2:4* 2,4* 1.5* 1.1* .8* .2* .2*Ploughs 4.8* 4.6* 6.3* 5,6* 6.3* 5.7* 5.8*Machines, apparatus(motors) 2.2* 2.4* 2,7* 1.3* 1.6* 1.5* 1.3*

* In units

Source: Norway's Commercial and Statistical Yearbooks, 1938-45

TABUIE I I I

PRIiiCIPAL IMPORlTS A;'.D E?O'RTS OF IRON AKD STBEL I-I NO I'JAY --- 1938-1944(in thousand metric tons)

1938 1939 1940 1941 1942 19h'3 1944Imp EXrD Imp L.xp Imp E xp ImD Exr Ims Expo Imp T"x"p Imp ExP

Iron ore 2 1497k] - 1110 - 213 - 496 - 548 - 329 - 243Manganese ore 124 - 104 - 54 - 1.2 - 17 - 15 - 33 -

Chrome ore 50 - 20 - 15 - - - 5 - X18 - 19 -

Pig iron 12 27 27 28 10 14 2 10 5 6 4 14 6 15Ferro-silicon - 33 - 41 - 28 - 44 - 43 - 69 - 55Ferro-chrome - 12 - 16 - 13 6 - 2 - 6 - 5Ferro-manganese - 50 - 68 - 31 - 15 - 2 - .3 = 9Steel bars and bolts

over 10 m 15 - 41 - 16 - 36 - 45 - 15 - 6 -

under 10 mm 30 - 43 - 17 - 22 - 18 - 8 - 8Section iron 32 - 46 - 27 - 35 - 23 - 11 - 5U and T shape iron 26 - 35 - 25 - 35 - 25 - 20 - 5Roiled and drawn wire 22 - 27 - 14 - 16 - 10 - 9 - 9Hoop iron 11 - 19 - 10 - 19 - 12 - 9 - 8Iron and steel plates 44 - 73 - 46 - - 44 - 21 - 0Pipes and special iron 23 - 29 - 26 - 34 - 28 - 14 - 9

~/ Excluding exports from stock

Source: Stn.tistical Yearbook of NIorir,ay, 1943-45

TABELE IVJOUNTRIES OF ORIGIN 1938 and 1944lousand. metric tons)

an France U.K. Poland Czechoslovakia Netherlqnds Others

1114 /)21 1365 296 - 1901 224

?76 2049 694 1285 580 78a19 14693 3562 1592 601 42i56 2627 3652 659 1486.68 6368 982 1699 250 79

42 5196 1308 80048 284 31 - 92 33.32 4945 2164 554 - 141 -31 1169 4912 4456 1731 502

_ _ 3210 /99 - -

17

17 _ _ _ 57 -67 _ _ _ _ _

566-_ 1450_

TABLE VBY COTI1TRIES OF DESTINATIOK - 1938 and 1944(In metric tons).,rnd Hungary Netherlands France Poland U.KC. Czechoslovakia Others Total

- - - - - - - 141236 141236- - - 137 20005 23900 31723 - 959282

:--- - - - 9410 41559 163772 - 6z5o 396623; - 2600 43 - 3670 3676 900 417 17770.0 40 76 7006 1836 6249 1242 1666 27326'9 98 390 70 1oo 14284 73 3288 32931- . - - - - 116o4 116o4

50466 50466<.; >8 - 301 - 6 1134 80 744 2880

_ - -_ 30 - - 40 4950-: -: _ _ 6 - - 5 - 780 852

_ - - - - - - 13875_ _ _ _ - - - 228791

- -_ _ _ _ _ _ 125 125r o 50 130 - _ _ _ 1510 15102- 50 - - - - - 300 54660-- - -- - - - 5309

*r - _ _ _ _ _ _ 8910(

- - - - -- - - 399_ _ _ _ - - - - 1078_ _ _ _ _ - - - 46

TABLE VI

IMPORTS OF CHIROIiE AID I1AiTG1.HTLSZ $.ES BY COUNiT:JZS OF CRIGIIT, 1938 and 1944(In netric tons)

Chrome Ores angp2nese Oresa93g 1X/+ 1938 1,44

U.S.S.R. 550 "2 7n579 7146Belgian Congo - - 1510 -

Rhodesia 28423 - 279Belgian Uest Africa - _ 98282French Morocco - 1234Chile - 11118British India 8674 - 359 -Turkey 12925 - - -Germany - 9180 - 19921Denr.ark - 5662Bularia - 9114 - _Greece - -

Total 50022 19194 124361 32729

Source: Norges Hande1 1938-44

TADILZ VII

VALUE OF IRON AI! STEEL LP0r2TS .... -C'.T3 BY COUZUTPJIS OF ORIGIN, 1942-4(In thousand kroner)

Imports Exports Imports Exports Imports Exports

Bel-Lux 3450 549 3480 1058 2368 164Bohemia-Bavaria 911 295 66 212 25 468Denmark 94 1337 651 3022 419 3075France - - 1 - 1Germany-Austria 90103 28596 48004 53336 26841 51324Italy _ 11 - -Netherlands 179 112 51 249 34 210Sweden 10110 2082 11262 2228 5175 1142U.K. - - 3UXS.A. - 8Others 1A.7 372 -_ 6 7283 _ 2S6

Total 104894 33359 63542 60948 34863 56679

Source; Norway's Statistical Yearbook, 1943-45

TABLE VIII

ACTUAL II IPOR<TS OF IROiT i;TD STEEL, BY PRODUCT - 1945-47(In meturic tons)

1%9 1946 19L7 *

Forged and rolled iron 10882 3340 4636Malleuble iron 45 76 25Steel bars and bolts, over 10 mm 3608 25473 37421

if under 10 mm 2131 10467 9335U and H iron 4640 15356 10079Other shapes, iron 2566 5313Rolled wire 6495 22711 9165Drawn wire, black t850 3972 1338

it galvanized 801 3891 4825it blank 735 1536 1028

Tinned sheet, galvanized 2727 10134 15663Corrugated iron, " 2 43 3165 3864Zinced II.V., 18 2967 2876Other galvanized 4 547 491Hocp iron, " 3199 16337 11753Iron and steel sheets

3 mm and more 18303 46837 31376less than 3 rm '4547 11876 12905

Pipes, cast irQn 459 6837 10198" forged 4294 5258 5388i steel 645 5415 6248

Bolts and nuts for rails 30 2370 4961Shipbuilcing materials _ 50 1S5Angle and T iron 8632 13417 12463

* For January - August, 1947

Source: Norway's Trade Book, 1945-47

TABLE fX

ACTUAL ?PORTS OF IRON AlD STEEL, BY PRODUCTS - 1945-47(In metric tons)

i242 19L6i 19L7*

Pig iron 6475 49605 31772**Ferro-silicon 12983 21447 25479Ferro-chrome 6.33 4566 8269Fe-rro-manganese 165 13389 14441Ferro-.silicon-manganese 741 2294 2775Block, forged and rolled iron 135 1620 910Scrap - 4712

S2a_Ke_ lIorges Handel, 1938-44

* Januery August, 1947

** The corresponding imports during the same yearamount to 836 tonso

TABLE, XHARD COAL SUPPLY AID CONSUNPTION

(In thousand metric tons)Est imated

1929 1935-38 1938 1945 1946 1947 1948 1949 1950 1951

Production 207 261 269 3 58 200 250 300 350 400Imports 2228 2070 2270 957 1476 1735 1630 1630 1630 1730Consumpt ion, all ind&ustries 2435 2331 2539 960 1534 1935 1880 1930 1900 2130Of which by iron and steel 10 11 12 7-5 13 13 9 9 9 9

TABLE XIACTUAL I;M:PORTS OF HARD CQAL BY COUNTRY OF ORIGIN

Germany 44 196 146 205 471 304 50O 500 500 500U.K. 1496 1442 1417 248 15 - 130 500 530 630Poland 684 421 427 7 314 6oo 600 600 60o 6ooOther 4 11 280 2Z%2 _7l2* 831 400 30 -To otal 2228 2070 2270 957 1476 1735 1630 1630 1630 1730

* From U.S.A.

TABLE XIIESTPMA5ED REq,UIREEMS OF HARD COAI BY iVAJOR ID\STHRY

'.t ~1248 i299 19ti0 192i1

Cras works 70 75 80 85Railways 300 300 300 300Iron and mnetal industry 200 200 200 2003ther industries 700 710 720 750Bunkers 80 85 85 85Navigation 250 260 260 260:)omestic 280 Q 300 335 4'50Total 1880 1930 1980 2130

Source; C.E,2,C. Report, Vol. II and Norwegian Trade Books

TA3LE XIII

COKE SUPPLY AND CONSUMPTION IF NORWAY(In thousand metric tons)

Actual Estimated1929 193 5-38 1938 1945 1946 1947 1948 1949 1950 1951

Total production (coke oven) - - - - - - - -

Total production (gas works) 60 60 60 12 40 45 50 50 50 50Total imports of coke

oven cokeO 540 711 660 111 348 320 o 20 670 820 870From Germany 41 57 50 79 222 96 150 250 300 350

U.K. 437 445 417 32 88 10 150 200 250 300Poland - 23 27 - 38 100 120 150 200 2uQNetherlands 23 117 112 - - - - -Belgium - 49 40 - - - - -

Others 39 20 14 - 116* 100 70 70 20Total consumption of coke

cven coke) 540 709 6D9 111 279 320 520 670 820 870By iron and steel indus try 86 167 196 70 1'0 188 200 200 200 210

(a) blast andl steel foundries 66 142 170 55 125 169 170 170 170 180(b) steel foundries 20 25 26 15 25 28 30 30 30 30

By chemical industry 10 13 13 10 12 13 14 14 15 15By other industries 60 69 70 31 90 80 80 80 90 95Domestic 394 460 380 - 27 39 226 370 515 550

Source: C.E.E.C. Report, Vol. II * U.S.A.

T23LE XIV

COlNStMPTION OF OIL ANID REFRACTORY iiATERIALS I-; IRON A1HD STE'EBL INEIU:-TY(In thousand metric tons)

Actual Estimated1938 1945 1946 1947 1948 1949 1950 1951

Cil 2.2 .35 .6 1.1 2.6 6.1 7,3 7.5Refractory materials:

Silica and semi-silica bricks .6 .35 .45 .6 &65 .7 .7 .7Magnetite .3 - .2 .3 .35 .4 .4 .4

TABLE XV

ESTIPLAT-ZD MINING EQUIPPiNT RE(QUIIEWTh,NTS(Value in thousand U.S.$)

1948 1949 1950 1951Ecquiiment reMired Value Source Value Source Value Source Value Source

Underground equipmentCutting machines, trucks, electric lamps 750 U.S.A.- 750 U.S.A. 750 U.S.A. 750 U.S.A.

Surface equiDmentTractors, trucks, conveyors, etc. 100 0 100 l 100 100

Steam generatorsTurbine and generating 60o Home - - -

Coal cleaning plant (1 unit) 100 U.S.A. - _

Total value 1550 850 850 850

Source: C.:E.i.C. Report, Volume II

TABLE XVI

EMPLCY4ENT I DI7X OF ORE, hETAL, IRON AIdD STEEL INDUSTRIES(1938- 100)

1943. 1S 19L5

Ores and metal industry 95 98 86Iron and steel industry 121 120 118

TABLE XVII

LIVING COUDITIONS OF MINING AND NETAL WlRKERS - 1938-44

(1938 - 100) 1938 i.39 !2&O 1 1942 22, 19 4Hourly wages of:

Mine worlkers 100 100 108 115 127 130 136Metallurg4cal workers 100 lo; 111 116 123 130 132

Price of iron and metalproducts 100 101 118 139 147 150 152General cost of living 100 103 139 153 154 158 160

TABLE XVIII

IJOURLY WAGE (ANINUAL AVERAGE) OF iYiINIINTG AMD E1TTL liORYKERS - 1938-44(In kroner)

1.938 9 19L0 9 ; 9L2 ;

Mine workers 1.46 1.46 157 1.68 1.85 1.91 1.98Metal workers 1.42 1.44 1.58 165 1.74 1.84 1.88

TIABLE XIX

LABOR FORCE* AND UMBER OF ESTABLISTHETS OF MINING, IRON AND 1XTAL INDUSTRY

Units Workers Units Workers Ulnits Workers

Mining industry 13 3800 14 4200 14 45C0Iron and metal industry 423 28100 418 26800 421 26600

* Union workers only

Source: Norwqyts Statistical Yearbook

TABLE XX

EMPLOYYENT OF iiIi.TING INlDJUSTRY, 1936-45

Year Iron ore Silver oppDsr Nickl Oth al

1936 1227* 242 2750 216 787 52.221937 2020* 253 2901 171 429 57741938 2624,* 242 2849 193 510 64181939 2449* 234 2850 188 430 61511940 1403* 223 2376 181 350 45331941 1382*E 210 2816 164 429 50011942 658* 216 2918 176 590 45581943 610*t 215 3002 163 603 45931944 1194 220 3087 149 672 53221944 429 226 1979 130 302 30661945 500 _- - - -

*Incluting workers of Titan iron mines

S-ource: Norges Bergverkschrift, 1945

TABLE XXI

LABOR FORCE hlD TMXUvER 0F ESTABLISHEENTS - IRONT AITD IETALLURGICA-1J irnreflBES

Establishments AdnWorkers No. f Workers1943 1944 1943 1944 1943 1944

Ore & Metallurgical industry 5£ 5. 1 78 l2X 6Q03 2fiI528Mining 26 28 374 491 4593 5322Electric4Metallurgical 30 27 804 792 6460 6216

Iron & M4etallurgical industry 105_2 2IA. ZO7810 814 45926 L6112Machine shop 419 435 2954 3044 18430 18372Nailworks 31 29 364 346 1994 1930Motor works 43 44 156 156 1055 1085Ship works 135 149 144'1 1582 11911 12225Electric machines and I

apparatus 96 108 1556 1568 4376 4197Automobile 193 220 585 648 2915 3708Bicycle 24 24 68 73 730 739Tinplate and sheet metal 57 67 431 452 2468 2403Arms 24 26 113 114 580 585Musical instruments 9 10 12 14 78 80Gold and silver wares 26 33 130 157 759 788

Source: Norges Industri, 1943-45