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MARTIN MARIETTA ANNOUNCES INTENTION TO CLOSE CONKLIN PLANT BY EARLY 1994

 CONKLIN, N.Y., Aug. 10 /PRNewswire/ -- Responding to the rapidly declining defense budget, Martin Marietta Corporation (NYSE: ML) said today it intends to close its Regional Electronics Center here. It is anticipated that the facility would close early next year.
 The Conklin Regional Electronics Center manufactures advanced components and performs prototype and proprietary production work in support of Martin Marietta business units primarily situated in the northeastern United States. Its 1993 production workload is half the size of the volume forecast for the plant just two years ago. Roughly 350 people work at the facility.
 "Further decline in production is inevitable in light of continuing reductions in the defense budget," said Thomas A. Corcoran, president of Martin Marietta's Electronics Group.
 "Our projections indicate workload at the Conklin plant will drop another 20 percent below the 50 percent decline this year," he said. "This dramatic reduction reflects a U.S. defense budget that is in a power dive."
 Corcoran said cancellations and cutbacks in programs at Martin Marietta business units served by the Conklin facility, as well as the competitive loss of some programs those units had expected to win, were responsible for the production decline. Cost was a factor in these competitive losses.
 Corcoran estimated that capacity in excess of future needs across the Electronics Group will add "millions of dollars" annually to costs, eroding the group's position in an intensely competitive defense market where lowest possible cost will determine the industry's few survivors.
 "In order to survive, we need to eliminate unnecessary costs everywhere they exist in the Electronics Group," he said, noting that restructuring and consolidation options, including other facility closings, are being studied.
 "The team at the Regional Electronics Center is a truly outstanding one and has performed admirably under very difficult circumstances. Regrettably, this has not been enough to overcome a defense marketplace in unprecedented decline and efforts to diversify cannot be accomplished quickly enough to offset the magnitude of defense budget cuts," Corcoran said.
 Martin Marietta provides a comprehensive package of benefits and outplacement assistance to help employees find new positions. The package provides the continuation of medical and certain dental benefits for up to one year, along with job-search assistance, counseling and other services to eligible employees.
 -0- 8/10/93
 /CONTACT: Jim Tierney of Martin Marietta Corporation, 301-897-6923/
 (ML)


CO: Martin Marietta Corporation ST: New York IN: ARO SU:

TW -- DC005 -- 1144 08/10/93 11:03 EDT
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Publication:PR Newswire
Date:Aug 10, 1993
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