VZCZCXYZ0005
PP RUEHWEB

DE RUEHMO #0668 0461401
ZNR UUUUU ZZH
P 151401Z FEB 07
FM AMEMBASSY MOSCOW
TO RUCPDOC/USDOC WASHDC PRIORITY
INFO RUEHC/SECSTATE WASHDC 7492
RHMFIUU/US CUSTOMS AND BORDER PROTECTION WASHINGTON DC

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