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ALUMAX'S EXTRUSION BUSINESS TO BE RESTRUCTURED

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Norcross, Georgia, April 5 - Allen Born, chairman and chief executive officer of Alumax Inc., announced the restructuring of the company's extrusion business which was expanded recently through the purchase of Cressona Aluminum Company.

Mr. Born said: "The restructuring of the combined business is a demonstration of our heightened commitment to customers particularly in the service centre, transportation, and building and construction markets. Alumax Inc. has always been a customer-oriented and market-driven company and this restructuring fits our tradition of staying close to our customers."

He said that Alumax Inc. is the world leader in the extrusion business with the largest manufacturing capacity in the industry. The "new" Alumax Extrusions, Inc., to be headed by Jay Linard, as president, will be headquartered in Cressona, Pennsylvania.

Mr. Linard said that Alumax Extrusions will be organized into three business units to provide even greater focus and concentration on the company's key markets. Each business unit will be headed by an executive vice president.

Ronee Hagen will head Cressona Aluminum Company, also based in Cressona, Pennsylvania, which will serve the service center and selected manufacturing markets.

Marc S. Czachorski will head Alumax Transportation Products, based in Chicago, Illinois, which will serve the automotive, truck, trailer and rail markets.

Robert Dolan will head Alumax Building & Construction Products, based in Plant City, Florida, which will serve the residential building and infrastructure markets.

Mr. Linard said: "Cressona Aluminum Company will concentrate on the service centre industry and selected manufacturers. The service centre industry," he said, "presents a major growth opportunity as more companies realize the value of asset management and inventory reduction."

According to Mr. Linard, 14 per cent of all extrusions are sold through service centres which offer substantial growth potential for the service centre industry and for Cressona Aluminum.

"Cressona has earned recognition as a marketplace leader having catered to the service centre industry for 17 years. This business," he added, "will also serve certain manufacturing firms which prefer to have direct working relationships."

Mr. Linard said that the transportation market has been the fastest growing aluminum market over the past several years. "The outlook," he said, "continues to be excellent."

Alumax Transportation Products, according to Mr. Linard, will be organized to provide the high-level service required by this market and a full range of extruded products.

"Many observers expect aluminum extrusion usage in the automotive and light truck markets to grow at double-digit annual rates during the next five years," Mr. Linard said. "New products and designs in the truck and trailer markets will also keep the industry growing for years to come," he said. In addition, Mr. Linard pointed out that aluminum coal cars, grain cars, and high-speed passenger trains will result in a strong growth opportunity for extrusions in the rail market.

"Building and construction provides one of the largest markets for aluminum extrusions in the world," Mr. Linard said. Alumax Building & Construction Products, he explained, will focus on niches in this market that offer strong and steady growth for Alumax.

"The residential building segment of the market," he said, "presents a number of significant opportunities. With our state-of-the-art paint lines, we are well equipped to exceed industry growth in these key areas. In addition, new emerging applications of extruded shapes in the infrastructure market will be readily produced by our custom profile and large press capabilities."

Mr. Linard explained that each of the three Alumax Extrusion businesses will have a staff of sales, marketing, financial, systems, and technical experts. The company's nine manufacturing plants throughout the United States, according to Mr. Linard, will become a unified manufacturing support group capable of delivering high-level manufacturing flexibility and capability.

"These plants," he said, "contain 40 extrusion presses ranging from 700 to 6000 tons capable of providing extrusions up to 55 pounds per foot and 20-inch circle size. All three business units will grow substantially," he added, "because we know the special needs of our markets and now, through our restructuring, we have the ability to better meet these needs."

Alumax is a world leader in aluminum with year-end 1995 assets of more than $3.1 billion and 1995 revenues of more than $2.9 billion. The company produces and markets primary aluminum ingot, billet and slab and is a major fabricator of value-added aluminum products for the building and construction, transportation, containers and packaging, and consumer durables industries.

Alumax employs 15,500 people in more than 100 plants and facilities in the United States, Canada, and Western Europe.

SOURCE Alumax



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