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ARMCO SELLS BRAZILIAN SHEET AND STRIP BUSINESS

 PARSIPPANY, N.J., Sept. 22 /PRNewswire/ -- Armco Inc. (NYSE: AS) announced today that it sold its Brazilian sheet and strip operations, Armco do Brasil, to the operation's current management team. Armco said the sale was a continuation of its strategy to focus on stainless and electrical steel and divest businesses that do not represent a strategic fit.
 Armco said that as a result of the sale of Armco do Brasil shares, and prior remittances of intercompany debt, it had received approximately $55 million in net cash proceeds and would record a charge of approximately $15 million against third quarter earnings.
 As part of the transaction, the new company will purchase ongoing technical assistance from Armco's corporate research for a period of five years. In addition, the new owners will provide future assistance to Armco in the sale of technical services to other companies in Brazil.
 Armco do Brasil sheet and strip operations are based in Sao Paulo, Brazil, and process semi-finish steel to produce carbon and alloy specialty steel products for the automotive, appliance and general industrial markets. The company employs approximately 800 people in two plants and has been a leading supplier of carbon and alloy steel products to Latin American markets for more than 80 years. Sales in 1992 were $106 million.
 Armco Inc. is a leading domestic producer of stainless and electrical steels. Armco also produces carbon steels and steel products, tubular steel goods and non-residential construction products. Armco has joint venture interests in companies which produce stainless steels, carbon flat-rolled steels and oil field equipment.
 -0- 9/22/93
 /CONTACT: James A. Herzog of Armco, 201-316-5276/
 (AS)


CO: Armco Inc. ST: New Jersey IN: MNG SU: TNM

LG -- NY023 -- 4582 09/22/93 10:14 EDT
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Publication:PR Newswire
Date:Sep 22, 1993
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