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XEROX CORPORATION TO LOCATE NEW LOW-COMPLEXITY MANUFACTURING FACILITY IN UPSTATE NEW YORK

 Joint Company-Union Project Brings Jobs Back to U.S.
 ROCHESTER, N.Y., April 8 /PRNewswire/ -- Xerox Corporation


(NYSE: XRX) announced today its intention to locate a new simple- assembly manufacturing subsidiary in Utica, N.Y. -- a decision that could eventually create as many as 300 new jobs, bring work back to the United States from foreign suppliers, improve quality and save the company $2 million a year.
 The new subsidiary, known as the Low Complexity Manufacturing Group Inc., will be dedicated to supplying simple subassemblies for integration into Xerox copier and printer products built at the company's high-technology manufacturing center in the Rochester suburb of Webster.
 The announcement caps an 18-month joint study undertaken by Xerox and the Amalgamated Clothing and Textile Workers Union, which explored ways in which work involving snap-together and easy-to-assemble components -- much of it currently sourced from Mexico and the Far East -- could be competitively accomplished in the United States.
 The project signals a paradigm shift for Xerox, which will gain a strategic advantage in sourcing subassemblies from a low-cost manufacturing operation, enabled by a unique management-union collaboration that allows the new venture to contain overhead and operating expenses.
 The 41,000-square-foot manufacturing site, located in the Utica Business Park, was selected for its attractive lease terms, proximity to the Xerox manufacturing center in Webster and the area's available pool of potential employees. Initially, the plant will employ about 50 people, however over the long term that number could reach 300.
 Xerox acknowledged the assistance and cooperation of Utica-area officials in creating an environment conducive to the business success of the manufacturing operation.
 "This is the embodiment of a true partnership -- labor and management working together with the City of Utica -- to bring to fruition opportunities that provide quality and cost savings to the company and bring jobs back to the United States," said Ronald J. Slahetka, Xerox vice president, Webster manufacturing operations.
 Upon final lease approval, initial site manufacturing setup will commence in May and the actual subassembly work could begin within 90 days.
 Xerox currently has this work with vendors scattered worldwide, a situation that makes it increasingly difficult to control delivery timetables, a crucial business requirement for companies, such as Xerox, that implement a Just-In-Time inventory, where parts are delivered only as needed. The Utica location, along the New York State Thruway, is within two and one-half hours (135 miles) of the Webster manufacturing site.
 By significantly reducing the price of component parts, the Utica operation will allow Xerox to become even more competitive as it produces products for a global marketplace.
 "This serves as a model for the union movement's future; collaboration replacing confrontation. The company meets its business objectives and the union has an opportunity to expand its jurisdiction," said Gary Bonadonna, business agent and assistant manager, Amalgamated Clothing and Textile Workers Union, which represents 4,100 Xerox employees in Webster.
 Union representation at the Utica operation will be determined by the new employees; Xerox has stated that it would not oppose the ACTWU's organizing activities.
 Those working in Utica will undergo the same training in quality and problem-solving techniques and principles shared by the near-100,000 Xerox people worldwide.
 The project resulting in the Utica venture is an outgrowth of negotiations between the ACTWU's Rochester Joint Board and Xerox that began in 1989 and continued in 1992, built upon a non-traditional, non- adversarial dispute-resolution negotiating model, considered unique in a corporate-union negotiation.
 A lease for the site is subject to the review and approval of the Utica Urban Renewal Agency, which owns the business park, and the Utica Common Council.
 -0- 4/8/93
 /CONTACT: Jeff Simek of Xerox Corporation, 716-423-5230/
 (XRX)


CO: Xerox Corporation ST: New York IN: CPR SU:

BM -- CL011 -- 4168 04/08/93 11:01 EDT
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Date:Apr 8, 1993
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