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accelerate the speed of this expansion so as to reach the production
target in a shorter time. For the scheduled period, an increase in production
with domestic raw materials up to about 1.8 million tons is planned, taking
into account that about 500,000 tons are at present being produced in existing
works. On page 13 of our treatise we have divided the additional production of
about 1.3 million tons according to the various manufacturing processes. We
have tried to include all possibilities for an extension of production. There
is no need to adhere rigidly to this division. It is, for example, quite
possible to replace the contemplated increase in the production of crude oil,
and production from slow combustion bituminous tar, more or less through the
direct hydrogenation of lignite and pit coal. This would give us the advantage
of enabling us to start from an assured raw material basis and of being
independent of byproducts. On the other hand, it also makes it possible to
direct the manufacturing processes so as to satisfy the variable demands of the
motor fuel market for gasoline, gas oils, and lubricating oils.
On page
16, and in annex 14, we have discussed the necessary capital investments for
the planned expansion and the effects on the procurement of employment. It was
mentioned in the conference held on the 13th of this month that an increase of
the German production by 2 million tons would necessitate a capital investment
of about 600 million marks. In our calculation we set down 400 million marks
for 1.3 million tons. For the 700,000 tons not yet accounted for, about 200
million marks would have to be invested in factories to produce hydrogen from
coke-oven gas with the available power sources, which figures agree with our
estimate. Of course, these figures can be considered only as an approximate
basis, because investments will always depend on local conditions. The figures
given for workers employed refer to those that will be engaged in the
production of gasoline from basic materials, while a not inconsiderable number
would work in the machine and steel industry. Not included are those workers
who, through the production process, would indirectly be brought back again
into employment; according to careful estimates, this number amounts to at
least 75 percent of those directly employed.
As far as hydrogenation is
concerned, we have worked for quite some time on the production of suitable
aviation gasoline. We can now state that, according to technical conditions, it
would easily be possible to produce aviation gasoline as well as lubricants
suitable for airplanes, through domestic production. At this time, the
Lufthansa is making exhaustive tests with our gasoline.
I hope I have
given you in this treatise basic data for an expan- […sion] |
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