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PROCTER & GAMBLE ANNOUNCES MANUFACTURING CONSOLIDATIONS

 CINCINNATI, Jan. 13 /PRNewswire/ -- Procter & Gamble (NYSE: PG) today announced the closure of four plants and the shut-down of production lines at another six sites over the next 18 months, with production transferred to other P&G sites. Approximately 1,800 employees will be affected by these moves through early retirements, transfers or severance packages. This represents about half the total number of manufacturing positions that will be reduced in North America under the restructuring P&G announced in July 1993.
 The following plants will close:
 -- The Baltimore plant will phase out operations by July 1995. The plant produces liquid dishwashing detergents and glycerin.
 -- The Pointe Claire, Quebec, plant will phase out operations by January 1995. The site produces health and beauty care products.
 -- The Quincy, Mass., plant will phase out operations by January 1995. The plant produces personal cleansing bars and fatty acids.
 -- The South San Francisco, Calif., Folgers Coffee plant will phase out operations by July 1994.
 The following plants will shut down production lines, but continue other operations at their site:
 -- The Sacramento, Calif., plant will phase out the production of laundry and household cleaning products by the end of the year, but will continue to produce industrial chemicals.
 -- The Hamilton, Ontario, plant's production of health and beauty care products and fabric softeners will be transferred to other P&G sites by July 1995. Hamilton will continue to produce personal cleansing soaps, dishwashing and laundry liquids and household cleaning products.
 -- The Modesto, Calif., plant's production of Attends Adult Incontinence Products will be transferred, and the production of Pampers and Luvs diapers will be streamlined over the next 18 months.
 Three additional locations (Iowa City, Iowa; Kansas City, Kan.; and Greensboro, N.C.) are being advised today of one or more product lines that are moving into or out of their site, but the company does not expect these moves to involve any involuntary employee separations.
 P&G Chairman and Chief Executive Edwin L. Artzt said, "P&G's business is healthy and production in the categories affected by today's announcements is expanding at other sites. However, we must reduce our total number of producing sites to remain competitive in the years ahead and deliver greater consumer value.
 "We regret the need to make these difficult decisions affecting employees and communities we care about, and that have long been part of the P&G family. Each site will work to assist employees through career counseling, retraining, financial assistance and some transfer opportunities."
 The cost impact of these moves was incorporated in the $1.5 billion after-tax reserve P&G established in July 1993 to cover plant consolidations and organizational restructuring. At that time, the company noted that $1.2 billion of that reserve would fund changes to its worldwide manufacturing operations, including the closure of 20% of its manufacturing operations over a period of three to four years. Today's announcements are part of this ongoing process. Procter & Gamble will continue to make announcements at affected plants just as soon as site-specific implementation plans are finalized.
 -0- 1/13/94
 /CONTACT: Sydney L. McHugh of Procter & Gamble, 513-945-8035/
 (PG)


CO: Procter & Gamble ST: Ohio, Maryland, Massachusetts, California IN: HOU SU:

KL -- CL015 -- 1155 01/13/94 14:33 EST
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Publication:PR Newswire
Date:Jan 13, 1994
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