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NATIONAL STANDARD ANTICIPATES ALABAMA PLANT CLOSING

 NILES, Mich., Dec. 29 /PRNewswire/ -- National-Standard (NYSE: NSD) Company anticipates that its Columbiana, Ala., plant will close by June 1994. Over the past year, the company has tried unsuccessfully to make the plant profitable by reducing costs in a number of areas, including utilities, supplies, and labor. While this cost-reduction effort is continuing, the company does not, based upon current information, anticipate sufficient savings to make the plant profitable.
 A major setback for the Columbiana plant has been the loss of hose wire business. Because of an ongoing labor strike, the plant was unable to service its hose wire customers, and those customers have now found alternate sources of supply.
 According to company President Michael B. Savitske: "A year ago the company started to address cost reductions with utilities, suppliers, public officials, and the union. However, with the loss of the hose wire business one of the company's financial projections show the Columbiana plant turning profitable for the foreseeable future. The company has made the decision not to continue absorbing losses in Columbiana. Therefore, based on where we are today, management sees no choice other than to close the plant."
 The company anticipates that production will gradually decrease and that the Columbiana plant will continue to operate through approximately June 1, 1994.
 During fiscal 1993, the company reported that strikes at Columbiana; Corbin, Ky.; and Niles cost $4.5 million. The Corbin and Niles strikes were settled during fiscal 1993. The cost of the Columbiana strike during 1994 is projected to be $6.0 million. The company anticipates taking a charge of $4.3 million during its first quarter for the potential close of the Columbiana plant and relocation of a portion of its bead and hose wire production capacity to other National-Standard facilities. The company expects to report operating profit for the quarter ended Dec. 31, 1993, before the effect of the closure provision.
 Founded in 1907, National-Standard is a Niles-based firm with annual sales of approximately $210 million. In nine operating facilities throughout the world, the company manufactures and distributes a broad range of wire and wire-related products, including wire cloth and fabricated filters for the automotive air bag industry.
 -0- 12/29/93
 /CONTACT: W.D. Grafer of National-Standard, 616-683-8100/
 (NSD)


CO: National-Standard Company ST: Alabama, Michigan IN: SU:

TO-KT -- DE009 -- 7838 12/29/93 15:15 EST
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Publication:PR Newswire
Date:Dec 29, 1993
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