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NICHOLS-HOMESHIELD ANNOUNCES PLANS TO RESUME PRODUCTION AND SOLICIT ORDERS AT ITS LINCOLNSHIRE PLANT

 HOUSTON, Sept. 1 /PRNewswire/ -- On Aug. 26, 1993 Quanex Corporation (NYSE: NX) released information on a fire at its Nichols-Homeshield aluminum cold rolling facility at Lincolnshire, Ill. A preliminary damage assessment of the facility is nearing completion and work is under way to restore the facility to full production.
 Nichols expects to have its undamaged narrow width rolling mills running at full capability within two weeks. Also, production will be diverted to the 36 inch wide mill at the rolling facility in Davenport, Iowa. Accordingly, Nichols is currently quoting early October lead times for both painted coil up to 36 inches wide and mill finished coil up to 28 inches wide. Mill finished coil up to 36 inches wide is being quoted for early November while coil over 36 inches is subject to inquiry.
 Damage was confined to the largest of three rolling mills and adjacent portions of the building. Utilities will be immediately restored to the facility, with the exception of this mill. Material in close proximity to the fire was lost due to water damage, but it is expected that the Nichols casting plant in Davenport will be able to replace that product in a timely fashion.
 Total damage to the facility is estimated to be $5 to $8 million with a present estimate that the damaged 48 inch wide mill will be back in limited operation within three months and fully capable within six months. Nichols reports that its building, content and business interruption insurance will help offset losses. In any event, the effect on operating earnings is not expected to be greater than $1 million per quarter.
 -0- 9/1/93
 /CONTACT: Jeff Galow, 713-877-5327, or Ann Meador, 713-961-4600, both of Quanex Corporation/
 (NX)


CO: Nichols-Homeshield; Quanex Corporation ST: Illinois, Texas IN: MNG SU:

MP -- NY029 -- 7877 09/01/93 10:40 EDT
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Publication:PR Newswire
Date:Sep 1, 1993
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