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CINCINNATI MILACRON ANNOUNCES MAJOR RESTRUCTURING OF VALENITE SUBSIDIARY ANNOUNCED

 CINCINNATI, Ohio, March 2 /PRNewswire/ -- Cincinnati Milacron Inc. (NYSE: CMZ) today announced a major restructuring program for its newly acquired subsidiary, Valenite Inc. The plan calls for the closing of nine plants, including two in Brazil and one in Mexico, and net employee reductions of about 480 people. The objectives of the restructuring are to improve Valenite's profitability by lowering working capital requirements, reducing overall expenses, increasing the level of plant modernization and improving capacity utilization.
 Costs associated with the restructuring, to be substantially completed in 1993, were provided for at the time of the acquisition, February 1, 1993. As a result, there will be no special charges, Milacron said.
 "Valenite and Milacron management have worked together for several months to develop the details of the restructuring plan," explained Alan L. Shaffer, Milacron group vice president of industrial products. "In fact, well before the acquisition, Valenite management had concluded that most of these actions were necessary," he said. "We're confident that these measures will be sufficient to restore Valenite's traditional levels of profitability," Shaffer said.
 "I'd like to stress that, during and after the restructuring, we'll be enhancing our new product development and increasing our focus on the needs and requirements of our customers," Shaffer concluded.
 Details of the restructuring follow.
 Of Valenite's 27 facilities worldwide:
 -- Nine plants will close: in Kentucky, Michigan (Tawas), Ohio, Australia, Brazil (2), Italy, Mexico, and the U.K.;
 -- Two plants will be downsized: in Michigan (Madison Heights Carbide) and Canada;
 -- Four plants will receive additional work: in South Carolina, Texas, France and Germany; and
 -- At its state-of-the-art facility in France, Valenite will establish new R&D capabilities to serve the European market.
 Timing on the closures in Mexico and Brazil is to be determined in conjunction with local laws and government agencies. Valenite will continue to sell to and support customers in all markets, including Mexico, Brazil, Australia, Italy and the U.K., using its direct sales and distribution network.
 About 610 employees, out of a total of 2,700 worldwide, will be affected by corporate reductions and the closing or shrinking of plants. The plants receiving additional work will add about 130 people, resulting in a net employment reduction of approximately 480 people. All affected employees will receive severance benefits and, where possible, outplacement assistance.
 Cincinnati Milacron, with 1992 sales of $789 million, is a leading manufacturer of advanced factory automation in the form of machine tools, plastics processing equipment, computer controls and flexible manufacturing systems. The company is also a leading supplier of industrial consumable products, including precision grinding wheels, metalworking fluids and Valenite metalcutting tools and systems.
 -0- 3/2/93
 /CONTACT: Albert Beaupre of Cincinnati Milacron, Inc., 513-841-7241/
 (CMZ)


CO: Cincinnati Milacron Inc. ST: Ohio IN: SU: RCN

SH -- NY050 -- 1887 03/02/93 10:54 EST
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Publication:PR Newswire
Date:Mar 2, 1993
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