Nickel on the Line

The U.S. General Services Administration announced last week that its $42 million nickel processing plant at Nicaro in eastern Cuba is going full blast again. Built by the U.S. Government during World War II and shut down after the peace because of its steep operating costs, the plant was reopened last year to help meet the urgent need for heat-resistant nickel alloys for jet engines. According to GSAdministrator Jess Larson, Nicaro's furnaces are "already operating 8% higher in efficiency" than last time, and their output is "rapidly rising towards the projected goal of 30 million pounds a year." This was perhaps overoptimistic: in August, the second month of full production, Nicaro turned out just over 2,000,000 Ibs.

The figures were important, not only because the plant belongs to U.S. taxpayers but also because the manner of its reopening last year caused something of a row. Passing over the firm which had run Nicaro during the war, GSA awarded the operating contract to the Nickel Processing Co., mainly because it offered to boost Nicaro's annual output from 25 to 31 million Ibs. But on the August showing, Nickel Processing, now owned 60% by National Lead Co. and 40% by Cuban interests, was producing at the rate of 24 million Ibs. a year--less than the best World War II rate. Two new furnaces (Nicaro's eleventh and twelfth) were fired up in mid-July, and the performance may be better now.

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