EXTRANCHECK: PRE-LICENSE CHECK: ARGON LLC,

UNCLAS MOSCOW 000668 SIPDIS SIPDIS USDOC FOR 532/OEA/MHAMES/LRITTER USDOC FOR 3150/USFCS/OIO/CEENIS/MCOSTA USDOC FOR 532/OEE/MO'BRIEN E.O. 12958: N/A TAGS: BEXP ETRD ETTC RS SUBJECT: EXTRANCHECK: PRE-LICENSE CHECK: ARGON LLC, BALAKOVO, SARATOV REGION, RUSSIA, LICENSE NO. D368394 REFTEL: USDOC 06722 ¶1. Unauthorized disclosure of the information provided below is prohibited by Section 12C of the Export Administration Act. ¶2. Reftel requested a Pre-license check to determine the legitimacy and reliability of the end-user, Argon LLC, Balakovo, Russia. The company is listed on BIS license application D368394 as the ultimate consignee of one model CTUF-6.5D60-FT-2800 graphite resistance- heated tube furnace. These items are controlled for nuclear non-proliferation and missile technology reasons under ECCN 1B101. The licensee is Harper International Corporation, West Drullard Avenue, Lancaster, NY 14086. ¶3. On February 8, 2007, Export Control Attache Donald Pearce and FSN Natalya Shipitsina conducted the requested pre-license check at the offices of Argon LLC, Saratovskot Shosse, 2, Saratov region, Balakovo, Russia. The export control team met with Sergey Motorin, General Director. ¶4. Argon, a part of the Balakovsky Plant of "thread materials," is a manufacturer of carbon poly-acrylic materials and fibers. The plant was founded 40 years ago, and at one time employed over 22,000. Currently the plant employs around 4000, and produces a variety of viscose cable, consumer carbon fiber products such as inspection mirrors and fishing poles, and small parts for the aerospace industry. The company is also exploring the possibility of producing such varied products as brake pads, blades for windmills, and cigarette filters, all using carbon fiber materials. While Argon has the ability to produce space grade and aviation grade carbon fiber, the company has no military or government contracts. Mr. Motorin stated that government and military projects are usually handled by state owned or managed companies, and are not usually very profitable for the contractor. ¶5. The furnaces in reftel will be used in the production of carbon fiber cord. Currently, Argon is using furnaces produced 20 to 30 years ago. While they are still operational, the production line is slow compared to lines utilizing more modern furnaces. The furnaces will be mounted into the production lines in a large factory facility on the grounds of the Balakovsky plant. The plant is manned 24 hours a day, as the production lines are run around the clock. A contract guard force provides security, and a high wall encloses the perimeter of the facility. Access to the area is restricted to authorized personnel and escorted guests. ¶6. Mr. Motorin stated that this may be the first of several purchases from Harper International Corporation (HIC),as the company is planning on adding additional lines. Mr. Motorin is assisting the HIC in opening a representative office in Moscow. In the early days of the company, Mr. Motorin stated that the goal was for the factory to survive. With this purchase, he is now focusing on how to thrive. ¶7. Recommendations: Post recommends Argon LLC, Balakovo, Russia, as reliable recipients of sensitive U.S. origin commodities. It is requested that post be notified of final disposition of the application, and of any shipments for this organization in order to conduct appropriate FCS follow-up and statistical reporting. (FCS MOSCOW/ SBOZEK/DPEARCE) BURNS