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REYNOLDS METALS TO RESTRUCTURE OPERATIONS AT ILLINOIS PLANT

 RICHMOND, Va., Jan. 3 /PRNewswire/ -- Reynolds Metals Company (NYSE: RLM) will discontinue a portion of its aluminum sheet production at its McCook, Ill., sheet and plate plant by the end of April, affecting approximately 800 of the plant's 1,200 employees.
 The action is part of a previously announced plan to restructure certain of the company's fabricating operations to improve productivity and focus on markets with the greatest potential for growth. The company currently estimates that the restructuring actions, including that being taken at McCook, will result in aggregate charges for 1993 ranging from approximately $200 million to $225 million, after tax, or $3.35 to $3.75 per share.
 "We are phasing out certain products at McCook involving mostly common alloy sheet because of a combination of factors that includes excess capacity in the aluminum rolling industry, weak demand in certain overseas markets and deteriorating margins," said C. Stephen Thomas, vice president and general manager of Reynolds Mill Products Division. He added that the plant will continue to supply rolled products for the automobile and light truck market in support of the company's strategy to fully participate in the growth of this business.
 "The McCook plant also produces aluminum plate for various market applications, the largest sector being the aircraft, aerospace and defense industries. McCook's plate operations will not be affected by today's announcement," Thomas said. Approximately 400 employees will be retained at the plant to operate the plate manufacturing operations, which have undergone a $41 million modernization and expansion since 1990.
 The company said it is working with the unions representing hourly employee sat the plant on the orderly restructuring of the facility. Implementation of the workforce reduction will begin after expiration of the 60-day notification period required under the WARN Act.
 -0- 01/03/94
 /CONTACT: Drew Lybrook of Reynolds Metals Company at 804-281-2965 or, home, 804-360-5736/
 (RLM)


CO: Reynolds Metals Company ST: Virginia, Illinois IN: MNG SU: RCN

KW-IH -- DC005 -- 8485 01/03/94 11:55 EST
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Publication:PR Newswire
Date:Jan 3, 1994
Words:331
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