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INCO LIMITED ANNOUNCES ALLOYS BUSINESS INITIATIVES

 TORONTO, March 29 /PRNewswire/ -- Inco Limited (NYSE: N) today announced a number of initiatives -- including employment reductions -- to decrease costs, enhance customer service and improve profitability in its alloys business unit, Inco Alloys International (IAI). Inco has established a goal of reducing costs to a level at which IAI can initially break even under today's difficult market conditions and achieve satisfactory profitability over time.
 Inco Alloys International is one of the world's leading producers of high-nickel alloys, serving such industries as aerospace, chemical processing, pollution control, marine and energy. Production facilities are located in the United States and the United Kingdom. In recent years, the alloys industry has been adversely affected by reductions in defense and aerospace spending, recessionary conditions in the major industrial economies and industry overcapacity.
 These initiatives, which involve a reorganization of IAI's operations, are being implemented to improve processing efficiency and reduce product throughput times, thereby reducing costs and providing more reliable and timely delivery to customers. Sales and marketing functions will also be streamlined. All of these actions are designed to better serve customers needs and improve customer satisfaction.
 Through these initiatives, Inco expects employment levels will be reduced in 1993 by about 340 people, or approximately 12 percent of IAI's existing workforce. The reduction will be effected through a combination of actions, including voluntary retirement and separation programs, and will result in a charge of approximately $10 million. It is anticipated that this workforce reduction will reduce employment costs on an ongoing basis by approximately $15 million per year. In addition, the investment in certain facilities will be written down and certain relocation and other costs will be incurred as part of the reorganization.
 In total, the workforce reductions, writedowns and other actions will result in a charge against Inco's first quarter 1993 results of approximately $20 million, or $13 million after tax. The reorganization will not require any major capital investment.
 These actions are a result of a comprehensive review by Inco assisted by an outside consulting group. Inco will continue to take aggressive actions to lower IAI's costs, improve customer satisfaction and restore IAI's profitability.
 /NOTE: All dollar amounts are expressed in United States currency/
 -0- 3/29/93
 /CONTACT: Bob Purcell for Inco Limited, 416-361-7758/
 (N)


CO: Inco Limited ST: Ontario IN: MNGSU:

LR -- NY037 -- 0416 03/29/93 10:30 EST
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Publication:PR Newswire
Date:Mar 29, 1993
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