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North Korea

 
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North Korea

Manufacturing

The machine building industry grew rapidly beginning in the mid-1950s and had become the most important industrial sector by 1960. It supplies machinery needed for domestic industry and agriculture, such as tractors and other farm machinery, as well as an extensive range of military equipment (see Military Industry , ch. 5). Production levels since the early 1960s, however, have been disappointing. The output of metal cutting machines reached 30,000 units in 1975, but was far below the planned target of 50,000 units in 1984. Output in 1990 was estimated at 35,000 units. Similarly, the output of tractors in 1984 was estimated to be less than 40,000 units, below the Second Seven-Year Plan target of 45,000 units per year. Annual automobile production in 1990 was estimated at 33,000 units.

The quality of machinery generally is considered below international standards. Some of the largest machinery plants are the Yongsng Machinery Works and the Rakwn Machinery Works. The Taean Heavy Machinery Works, built during the Second Seven-Year Plan (1978-84) with Soviet assistance, is the country's largest machinery plant.

During the Third Seven-Year Plan (1987-93), the government plans to modernize the machinery industry by introducing hightechnology and high-speed precision machines and equipment. For example, it was reported in 1990 that the H ich'n Machine Tool General Works had completed a flexible manufacturing process by introducing robots into the plant's numerically controlled machine tools and that the Ch'ngjin Machine Tool Plant and others were hastening to do the same. The Third Seven-Year Plan calls for an increase of 150 percent in machinery output, slightly higher than the claimed increase of 130 percent during the previous plan.

Utilizing the country's relatively abundant iron ore, the steel industry is a major industrial sector. The Kimch'aek Integrated Iron and Steel Works has surpassed the Hwanghae Iron Works to become the largest steel and iron center. The planned annual production targets for the Second Seven-Year Plan of 6.4 million tons to 7 million tons of pig-iron and granulated iron, 7.4 million tons to 9 million tons of crude steel, and 5.6 million tons to 6 million tons of rolled and structural steel were not met. Estimated output of crude and rolled steel in 1990 was 5.9 million tons and 4 million tons, respectively. Outdated technology, a lack of coking coal, and the low purity of domestic iron ore created serious problems for the iron and steel industry. These difficulties forced the government to scale down the crude steel target by the end of the Third Seven-Year Plan compared with the earlier target of 15 million tons by the end of the 1980s. Completion of the second-stage expansion of Kimch'aek in 1988 reportedly increased the output capacity of the complex to 5 million tons or more per year. New expansion projects completed in 1989 added a 100-ton converter, an oxygen plant, and other production and auxiliary systems.

Capacity expansion projects have been under way at the Ch'ngjin and Ch'llima steel complexes. In October 1989, the Large Size Stamp-Forging Plant of the Ch'llima Steel Complex, with a capacity of 2 million tons a year and equipped with a 100,000-ton press, began operation. An expansion project completed in 1989 at the S ngri General Motor Works quadrupled the production capacity of the heavy duty trucks and plant manufactures.

The French-built Ch'ngnyn Integrated Chemical Works in the Anju District north of P'yongyang is the first petrochemical complex designed to produce ethylene, polyethylene, acrylonitrite, and urea. The nearby refinery at Unggi supplies the necessary crude petroleum. The Eight February Synthetic Fiber Integrated Plant, a large-scale complex, produces chemical fibers and has an annual capacity of 50,000 tons. A synthetic fiber complex in Sunch'n, the country's largest, began operation in 1989 after completing its first stage of construction. When all stages are completed, production capacity is expected to reach 100,000 tons of synthetic fiber, 1 million tons of calcium carbide, 750,000 tons of methanol, 900,000 tons of nitrogen fertilizers, 250,000 tons of caustic soda, 250,000 tons of vinyl chloride, and 400,000 tons of soda ash per year.

Light manufacturing has not kept pace with heavy industry. Since the 1970s, the leadership has begun to admit openly the backwardness of consumer goods in terms of quality and variety. The government's stress on providing adequate consumer goods continues into the early 1990s, but is not backed by any real efforts to divert state investment funds from heavy industrial projects. In his 1992 New Year's address, Kim Il Sung stressed achieving the people's long cherished desire that "all people might equally eat rice and meat soup regularly, wear silk clothes, and live in a house with a tiled roof." However, this was preceded by his exhortation that the most important and urgent tasks for 1992 were increasing the production of electricity and coal, and developing rail transport.

The textile industry, the most important light industrial sector, utilizes primarily locally produced synthetics and petrochemically based fibers, as well as cotton and silk. P'yongyang, the site of the P'yongyang Integrated Textile Mill, is the country's textile capital, but Siniju and Sariwn have been gaining in importance. During the Second Seven-Year Plan (1978-84), output of textile fabrics increased by 78 percent registered an annual growth rate of 8.6 percent, and, according to official claims, achieved the 1984 target of 800 million meters. However, foreign estimates placed textile output in 1990 at only 670 million meters. During the Second Seven-Year Plan, knitted goods, particularly those using domestically produced acrylic fibers, were emphasized. Efforts to expand the production capacity of knitwear continue in the Third Seven-Year Plan (1987- 93). By modernizing existing equipment and installing new spinning and weaving machines, the government plans to increase the annual output of textiles to 1.5 billion meters by 1993. Judging from the 1990 level of output, it is unlikely that this target will be fulfilled.

The Third Seven-Year Plan emphasizes synthetic fiber production based on indigenous technology using coal and limestone, and on the production of chemical fiber based on petrochemistry. The government has called for accelerating the expansion projects at both the Siniju and Ch'ngjin chemical fiber complexes. The planned annual output target for chemical fibers in the Third Seven-Year Plan is 225,000 tons while the output for synthetic resin and plasticizer is targeted at 500,000 tons. Foreign estimates place the output of chemical fibers in 1990 at 177,000 tons. North Korea also has a chemical weapons capability (see Special Weapons , ch. 5).

Since the early 1960s, local industry has been the major supplier of consumer goods and foodstuffs. With the introduction of the August Third People's Consumer Goods Production Movement, in effect since 1984, the government's policy of developing small- and medium-scale local industrial plants simultaneously with large-scale, centrally controlled light industrial plants continues into the 1990s.

Data as of June 1993

North Korea - TABLE OF CONTENTS

  • THE ECONOMY


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