REYNOLDS METALS CO
8-K, 1998-10-20
PRIMARY PRODUCTION OF ALUMINUM
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               SECURITIES AND EXCHANGE COMMISSION
                                
                     Washington, D.C. 20549
                                
                         _______________
                                
                                
                            FORM 8-K
                         CURRENT REPORT
                                
                                
             Pursuant to Section 13 or 15(d) of the
                 Securities Exchange Act of 1934
                                
                                
        Date of Report (Date of earliest event reported):
                        October 16, 1998
                                
                                
                     REYNOLDS METALS COMPANY
                     -----------------------
     (Exact name of registrant as specified in its charter)
                                
                                
                                
                                
   Delaware                  1-1430                 54-0355135
   --------                  ------                 ----------
(State of Incorporation)  (Commission             (IRS Employer
                          File Number)        Identification Number)




                     6601 West Broad Street
                         P.O. Box 27003
                  Richmond, Virginia 23261-7003
                  -----------------------------
            (Address of Principal Executive Offices,
                       including zip code)
                                
                                
                         (804) 281-2000
                         --------------
      (Registrant's Telephone Number, including area code)

<PAGE>  2
Item 5.   Other Events.

     The Registrant announced on October 16, 1998 that it has
advised local union officials at its Alloys can stock complex in
Alabama that Avalon-Borden Companies, Inc., which announced its
intent to purchase the facility June 23, has informed the
Registrant that it is critical they negotiate new labor
agreements.

     The Registrant told union leaders at the facility that if
(1) Avalon and the unions are able to agree on a new labor
contract and (2) the Registrant and Avalon are able to
successfully conclude negotiations and complete a sale, the
Registrant would treat the transaction as a "plant closing" for
purposes of benefit payments under its existing labor contracts.
Thus, even though the facility would continue to operate, union
employees would be eligible for additional retirement and other
contractual benefits.

     If these conditions are met, the Registrant would record an
additional restructuring charge in the range of $75 million to
$85 million, or $1.16 to $1.32 per share.  The Registrant
recorded an after-tax loss on the expected sale of the plant of
$196 million, or $2.72 per share, in the second quarter of 1998.

     "Reynolds Metals Company has been working very hard for the
past two years to provide every opportunity to the employees of
the Alloys complex and the community of Muscle Shoals to have a
competitive, viable operation for the future," said Jeremiah J.
Sheehan, the Registrant's chairman and chief executive officer.
"We hope that the employees and Avalon will be able to reach an
agreement on key issues of concern to both sides," he said.

     The sale remains subject to regulatory and board approvals,
negotiation and execution of definitive agreements, third-party
consents, completion of financing by Avalon-Borden, and other
customary closing conditions.

     This filing contains forward-looking statements.  Actual
results could differ materially from those that may be projected.
For details, please refer to the Management's Discussion and
Analysis in the Registrant's Form 10-Q Report for the quarter
ended June 30, 1998.  The key risk factors that could affect
results have been summarized.

<PAGE>  3
                           SIGNATURES
                                
                                
     Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.


                             REYNOLDS METALS COMPANY



                             By:  /s/ Allen M. Earehart
                                  -------------------------
                                  Allen M. Earehart
                                  Senior Vice President, Controller

Dated:  October 20, 1998


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