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REYNOLDS METALS TO CUT 88,000 METRIC TONS OF PRIMARY CAPACITY

 RICHMOND, Va., Aug. 16 /PRNewsire/ -- Reynolds Metals Company (NYSE: RLM) today announced that it will temporarily shut down 88,000 metric tons of primary aluminum production capacity, or 9 percent of the company's total, at two U.S. plants. As a result of this action, Reynolds will record in the third quarter of 1993 an after-tax charge of approximately $8 million, or 13 cents per share, to cover personnel and other costs related to the curtailed production.
 Reynolds will shut down one 41,000 metric-ton line at its Massena, N.Y., plant and two lines at its Longview, Wash., plant, with a combined capacity of 47,000 metric tons. Approximately 350 employees will be affected, including 165 at Massena and 185 at Longview.
 With this curtailment, the company will have idled 209,000 metric tons, or 21% of its total primary capacity of 991,000 metric tons. Reynolds Troutdale, Ore., reduction plant, with a capacity of 121,000 metric tons, has been idle for nearly two years.
 The latest curtailments will be effective in late October, following the 60-day notice to employees required by the 1988 federal Worker Adjustment and Retraining Notification Act.
 "Reynolds is curtailing additional primary capacity in response to the continued worldwide aluminum supply-demand imbalance, including the ongoing buildup of worldwide primary aluminum inventories. Taking into account the continued slow rate of economic recovery in the United States and a recession in Europe, we believe this action is in the company's best interest," said Richard G. Holder, Reynolds chairman and chief executive officer.
 "While it remains difficult to project a short-term turnaround for the industry, we remain optimistic about the long-term prospects for aluminum. Strong growth opportunities exist in automotive and packaging markets, and CIS and Eastern European countries are expected to consume more fabricated aluminum products as they progress toward market economies," Holder said.
 -0- 8/16/93
 /CONTACT: J.H. Taylor of Reynolds Metals Company, 804-281-4505/
 (RLM)


CO: Reynolds Metals Company ST: Virginia, New York, Washington IN: MNG SU:

IH-TW -- DC006 -- 2990 08/16/93 10:35 EDT
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Publication:PR Newswire
Date:Aug 16, 1993
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