BULGARIA Consul Cavendish W. Cannon, Sofia Bulgaria is primarily an agricultural country, therefore the bulk of the country's supply of chemicals and allied products is imported. from abroad. The cultivation of roses is a source of income for many, and the distillation of rose oil is an important industry. Cultivation of other aromatic plants for the production of essential oils is being steadily developed, mainly in the so-called Rose Valley. Pyrethrum cultivation is a recent development. About 1,300 hectares have been planted to mint, lavender, pyrethrum, origanum, basilicum, and similar plants Output in 1937 was expected to approximate 40,000 kilograms, as compared with 13,000 in 1936. These new crops were developed mainly in areas withdrawn from rose cultivation with the object of reducing rose-oil production. to accord with the present demand of the world market. Exports of peppermint oil from Bulgaria in the first 10 months of 1937 aggregated 25,760 kilograms, compared with 7,194 in the corresponding period of 1936. Special attention has been given to the development of this product, and mint is becoming one of the country's staple crops. Pyrethrum cultivation may now be considered as definitely established in Bulgaria, although at present only small experimental quantities, destined exclusively for the domestic market, are being produced. There are no prospects for a sudden and rapid development of the sort observed in recent years in Kenya, but it is expected that the present deliberately controlled development will in a few years lead to the production of a small exportable surplus. DOMESTIC MANUFACTURE The Bulgarian chemical industry consists of about 20 plants manufacturing soap, perfumery, and other toilet preparations; 8 producing paints and varnishes; 7, explosives; 4, vinegar and acetic acid; 3, alcohol distilleries; 3, calcium-carbide; 2 plants producing animal glue, glycerin, and bone meal; 2 producing industrial gas such as carbon dioxide and oxygen; 1 match factory; 1 copper-sulphate and 1 zinc-oxide plant, and several distilleries for essential oils such as rose and menthol. There are in the chemical-consuming line more than 200 textile mills, 5 sugar factories, 5 paper mills, and 4 glass factories. Of the industries listed, those manufacturing soap and toilet preparations, sugar, alcohol, vinegar, and matches are producing in sufficient quantities to satisfy the local market. The essential-oil distilleries and the plants for manufacturing animal glue have a production larger than the domestic consumption and some quantities are exported, chiefly to France, Germany, England, and the United States. Bulgarian rose oil is, of course, a well-known product. PRODUCTION The chemical industry constitutes the only group in Bulgaria that has not been organized into a special association or union, and there is no reliable source of information on the consumption of raw materials or on production schedules. Because of the unsettled European situation, the Minister of War has ruled that no publicity be given to data concerning production of chemicals or materials of a type suitable for military use. Some progress is being made toward an organization of chemical manufacturers, under the law for organizing professional establishments, and by next year data from various affiliated firms should be available. Most of the Bulgarian chemical firms constitute a complete industry, but some concerns, such as those manufacturing explosives, may be described as manipulative, since they merely convert imported raw or semimanufactured chemicals into finished products. The following table shows the more important chemicals produced during 1935 and 1936 for which official statistics are available. Production of More Important Chemical Products in Bulgaria The small production of alcohol was due to the liquidation of the monopoly regime. In all other important lines production in 1936 showed a general increase of about 13 percent over 1935. Unofficial sources indicate that a still larger increase took place in 1937. FOREIGN TRADE Most of the chemicals produced are utilized in the domestic industry, supplemented by fairly important chemical imports. Export sales consist chiefly of Bulgarian specialties, essential oils, opium, and glue. The decrease in imports may be ascribed to the gradual development of the domestic industry which has Government protection, including indirect benefits resulting from payment difficulties. From an informal survey made at the end at 1937, it appears that during that year both imports and exports of chemicals and allied products advanced, indicating a better economic status of the country and the continuation of its industrial development. NOTE. These are incomplete statistics, but more detailed data are not practicable here. CZECHOSLOVAKIA Commercial Attaché Edward B. Lawson, Prague The process of concentration and repatriation of chemical holdings, evident during the past few years, came to a more or less preliminary close early in 1937. As in former years, the extensive cartelization of the chemical industry, both nationally and internationally, continued in 1937, but the introduction of a 0.5 percent cartel tax assessed on all sales of cartels and cartelized products, effective January 1, 1938, may retard this movement during the current year. Decentralization of chemical enterprises, largely for reasons of national defense, made some progress. Considerable augmentation occurred in various chemical establishments by capacity increases, modernization of plants, and the launching of new products or large-scale production of formerly relatively unimportant chemicals. Domestic sales improved about 20 percent, imports registered gains of 28 percent, and exports 12 percent. Aussiger Verein, Czechoslovakia's largest chemical combine, started large-scale production of oxalic and formic acid, widened its range of coal-tar dyes, and developed its Handlova lignite and electric power holding in Slovensko (Slovakia). CARTELIZATION AND AFFILIATION The more than 160 national and international cartel agreements. secure coordination of production and profitable prices for nearly all commodities in the chemical industry. In the organic chemical field the more important cartels are the three on the part of Aussiger Verein-with the Ruetgers Werke A. G., of Berlin, regarding anthraquinone; with the German Formic Acid Convention, regarding formic acid; and with the Bohumin Chemical Works, concerning the supply of materials for the manufacture of saccharin. Other important agreements in the organic field are: (1) The production of crude coal tar, pitch, naphthalene, and various crude tar oils is regulated by a cartel comprising the Komanditni spolecnost Julius Ruetgers, Moravska-Ostrava and six large firms which have coal mines and works in the Moravska-Ostrava coal basin and (2) the local producer of citric acid, the Montan-und Industrialwerke vormals Joh. Dav. Starck, with other members of the European Citric Acid. Cartel. In the wood-distillation field, the basic cartel is the "Acetic," concerning the primary wood-distillation products and acting as a partner of the fermented acetic-acid cartel. Other cartels cover formaldehyde, comprising four wood distillers; sodium acetate, composed of three distillers; the Ester Convention, formed by four wood distillers. and the sole local producer of butanol. Also the charcoal cartel between a Slovensko and an Austrian firm. The "Prodimp" comprises six local impregnating plants using coaltar oils. The cartelization, both international and national, affecting inorganic chemicals is extensive and covers virtually all basic inorganic chemicals and fertilizers, as well as many less important items. Most of these cartels have the Aussiger Verein and/or its holdings as cartel members. The most important cartels, with names in parentheses are: Sulphuric acid, muriatic and hydrofluoric and superphosphates (Fosfa); soda ash, caustic soda, and Glauber's salt; tin chloride (with the German Goldschmidt combine); sodium chlorate (with French, Italian, German, and Swedish plants); titanium white; permanganates; calcium carbide and cyanamide; blue vitriol; hydrogen peroxide; ammonia, ammonia liquor, sal ammoniac and ammonium carbonate; refined borax (world cartel); insecticides and fungicides; nitrogenous fertilizers (world cartel); chrome alum and other chromates; aluminum hydroxide; red lead, litharge (International Lead Oxide Convention) and white lead (International White Lead Convention); zinc white and ultramarine blue; uranium products; potash; industrial gases; explosives; glue and gelatine ("Centroklih," "Taurus," and the International Glue Cartel); matches; and soap and many other chemicals and allied products. The local producer of alkaloids is a member of the International Cocaine Cartel along with 12 other firms in Germany, Switzerland, the Netherlands, France, and Great Britain. The firm also is a member of the International Opium Alkaloid Cartel with 13 other firms. in Germany, Switzerland, Great Britain, and France. The Konfa cartel comprises five local producers for the purpose of eliminating unnecessary competition in pharmaceuticals, organic and inorganic chemicals, and to coordinate production. The Control Office of Wholesale Druggists, which comprised 19 manufacturers and wholesalers, was dissolved at the end of 1937. The European Artificial Horn Cartel in which two local plants participated was discontinued on January 1, 1938. COMBINES Aussiger Verein (The Verein fuer chemische und metallurgische Produktion) the largest Czechoslovak chemical combine, directly and through its patron bank the Zivnosteneka Banka, is believed to account for more than 60 percent of the total value of the country's chemical production. The principal foreign and domestic holdings are: "Zorka" (First Yugoslav Chemical Industry Co., Subotica), producer of inorganic chemicals with a new plant under construction in Sabac; "Marasesti" (Marasesti Rumanian Chemical Works Ltd., Bucharest); Boehmische Glanzstoff Fabrik System Elberfeld, Lovosice, a rayon plant; Hruschauer Tonwarenfabrik, Hruschov (majority share) manufacturers of chemical ceramics, sewer pipes, and refractories; Czechoslovak Nitrogen Works, Marienberg (controlling participation); Chlorzinnwerk System Goldschmidt, Aussig, operated jointly with Th. Goldschmidt of Essen, Germany; Kolin Chemical Works, Kolin, jointly with Czechoslovak Explosives Co., Semtin; Bohumin Chemical Works, Bohumin (controlling interest), sole producer of saccharin, largest producer of insecticides, and manufacturer of pharmaceuticals and veterinarian preparations; Solo United Czechoslovak Match and Chemical Works, Prague; and Coal Mines of Handlova Co., Ltd., Bratislava (share majority). In the form of an "Interessengemeinschaft," a joint operating combine with Solvay & Cie., Brussels, Aussig's joint holdings with the Belgian Solvay are: Nestomitzer Solvay Werke, in Nestomitz, Czechoslovakia; Ebenseer Solvay Werke, Ebensee, Austria; Zaklady w Polsce T.z.o.p., with plants at Podgorza and Montwy, Poland; Uzinelor Solvay din Romania, with plants at Vioara de Sus (Maros-Ujvar) and Turda, Rumania; and Jugoslovenska Solvay Tvornica D. D., Lukavac, Yugoslavia. GAINS IN 1937 The value of domestic sales of locally made chemicals in 1937 was estimated at about 1,200,000,000 crowns ($42,000,000), possibly 20 percent higher than the value of domestic sales in 1936. The following index numbers of activity in the chemical industry are based on direct and indirect factors such as sales, consumption of fuel and power, and employment (1929-100), the low point of 80.9 was reached in 1932, rising to 85.8 in 1933, 90.2 in 1934, 93.5 in 1935, 97.2 in 1936, and 119.2 in 1937 (12 months ended October 31). The year 1937 showed the most rapid progress starting in January at 108.7, with a high of 137.0 in September, and 134.9 in October. |