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REYNOLDS METALS CONSIDERS OPERATIONS RESTRUCTURING

 RICHMOND, Va., Dec. 7 /PRNewswire/ -- Reynolds Metals Company (NYSE: RLM) said today it is considering actions to restructure certain of its operations, principally in the fabricating area, to improve worldwide performance at a time of extremely difficult market conditions in the aluminum industry. The restructuring actions under consideration are in line with the company's strategy of redirecting resources to those areas that meet its goal of profitable growth within the company's core businesses.
 The company currently estimates that the restructuring actions under consideration could result in aggregate charges ranging from approximately $150 million to approximately $225 million, after tax, or $2.50 to $3.75 per common share. The ultimate costs will depend on a number of factors yet to be determined, including the company's conclusions as to the long-term economic viability of certain of the assets under study; severance costs associated with closing those operations determined to be uneconomic; applicable asset recovery values; and the effects of related business reorganizations.
 The most significant operations under study are portions of the company's business conducted at its McCook, Ill., sheet and plate plant. A final decision is expected within the next 60 days.
 The company recently advised employees that it is restructuring its extrusion operations to increase competitiveness and focus on those markets that offer the greatest potential for future growth. As a result, the company is eliminating the extruded shapes operations at its Louisville, Ky., plant, and the production of irrigation tubing at its Torrance, Calif. plant. Approximately 125 employees, 80 at Louisville and 45 at Torrance, will be affected. The effects of these restructuring actions are included in the estimated charges.
 -0- 12/7/93
 /CONTACT: Lou Anne Nabhan of Reynolds Metals, 804-281-2171, or home, 804-359-2986/
 (RLM)


CO: Reynolds Metals Company ST: Virginia IN: MNG SU:

MH -- DC001 -- 1161 12/07/93 09:21 EST
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Publication:PR Newswire
Date:Dec 7, 1993
Words:306
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