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REYNOLDS METALS COMPANY 1983 BACKGROUND DATA INDUSTRIAL HYGIENE RECEIVED FACTS ABOUT REYNOLDS A worldwide, vertically integrated producer of primary and recycled aluminum and fabricated aluminum products. Its operations range from tne discovery, mining and processing of bauxite to the production of aluminum products for a variety of industrial and consumer markets. Trie second largest U.S. aluminum company. Worldwide primary aluminum production capacity is 1.3 million short tons, equal to eight percent of the free world's total Reclaimed aluminum production capacity is 311.000 short tons. Assets--$3.3 billion. 1982 sales--$3 billion. 27.CXX) employees. 27,300 shareholders. 52 domestic plants, 72 sales locations. Subsidiaries and associated companies operate abroad in 17 countries. Pioneered consumer aluminum recycling and last year recycled 540 million pounds of aluminum. Raphael's version ol "Saint George and tne Dragon" The legend of England's patron saint, oepiciea in noted paintings, symbolizes the crusading spirit, ana was me meptrabon in t935 lot the Reynolds Metals Company trademark. Cover Caption: Aluminum panels that will form the space shuttle s external fuel tank ere inspected to ensure adherence to stringent quality specifications at Reynolds McCook, lit. sheet and plate plant. CONTENTS Divisions, Markets and Products Divisions Major Markets Principal Products Milestones In Reynolds History Research and Development Some Reynolds Firsts Advantages of Aluminum Reynolds as a Corporate Citizen Recycling Financial Data Operating Data Domestic Production Facilities Annual Domestic Capacities Sales Locations International Operations Manufacturing Abroad Industry Data Industry Shipments by Markets U.S. Primary Aluminum Capacity 10-Year Pnmary Production, Shipments Corporate Directors and Officers Principal Subsidiaries News Media Contacts 10 14 IB V RMC0800280000062 REYNOLDS DIVISIONS. MAJOR MARKETS AND PRODUCTS DIVISIONS Mineral Resources Development Division Responsible for geological exploration and mining of raw materials. Manages the company s mineral assets. Mines bauxite in Jamaica. Brazil and Australia Alumina, Chemical and Marine Divisions Produces alumina lor use by Reynolds reduction plants. Sells chemical and ceramic grade aluminas. Operates ocean transport of bauxite and alumina Primary Metals Division Produces primary aluminum ingot billet and molten aluminum at reduction plants in U S. and Canada. Produces calcined petroleum coke Recycling and Reclamation Division Recycles and produces reclaimed metal for internal use as well as external sales to new and existing markets. Develops, markets and sells specialty products from recycled aluminum and technology relating to scrap recovery and processing techniques. Mm Products Division Produces aluminum sheet plate, wire, rod and bar, extrusions and tubing, powder and paste and custom-tabricated aluminum products for sale to a wide variety of industries. Works with company's general line distributors, one of the fastest growing markets for aluminum mill products. Construction Products Division Manufactures and distributes aluminum building products. Sells and installs the Reynolds aluminum solar hot water heating system. Specializes in home Improvement contracting in the Northeast (Reynolds Aluminum Building Products Company) and manages property development activities (Reynolds Metals Development Company). Flexible Packaging Division Produces and sells aluminum foil and film packaging materials and produces consumer wrapping materials including Reynolds Wrap. Converts molten aluminum into foil feedstock. Packaging converter by laminating aluminum foil to other materials, extrusion coating with plastic resins, printing, fabricating into folding cartons, pouches or formed into semi-ngid containers Markets a full line of foodservice disposable packaging and a line of premium shrink and stretch films. Consumer Products Division Markets Reynolds Wrap and 0'3 mono foil lines of household aluminum (oils. Peynoics Plastic Wrap Reynolds Freezer Paper. Reynolds RSO'-Par foil ware and Reynolds Oven Cooking Bags. Can Division Produces and sells all-aluminum cans and can ends, including the non-detachabie Stay-On-Tab Manufactures can-making machinery for use m Reynolds plants and tor sate 10 the worldwide can industry. Pioneer in developing the aluminum can lor wine, fruit juices, tood and other products Electrical Division Produces and sells redraw rod. and bare and insulated wire and cable. Reynolds Aluminum Supply Company Division Distributes a lull line of aluminum and stainless steel mill products through service centers throughout the country. Largest U.S. distnbutor of aluminum mill products. MAJOR MARKETS Aircraft Reynolds supplies aluminum such as sheet plate, extrusions and machined wingskins for jetliners to all major domestic aircraft and aerospace companies. Reynolds machines panels for the external fuel tanks and frame of the space shuttle and is a leader m developing aluminum alloys for these industries. Automobiles and Trucks The average 1983 model American car contains about 135 pounds of aluminum, the most ever. Applications include bumpers, engine blocks and heads, body sheet panels, intake manifolds, steering gear housings, wheels, alternator housings, transmission housings, air conditioner heat exchangers and aluminum radiators Heavy duty trucks have aluminum cabs, fuel tanks, main chassis supports, floors and wheels. Beverage The beer and soft drink industries use aluminum packaging and container products such as allaluminum cans, foil bottle labels, foil laminated cartons and foil-laminated, extrusion-coated pouch materials. Calcined Coke Anode grade calcined coke produced for internal use and outside markets. Chemicals Reynolds alumina chemicals are used in the ceramic, paper and chemical industries. Consumer Reynolds Wrap is the leading quality brand consumer wrapping material. Reynolds markets other consumer products including Reynolds Plastic Wrap. Diamond foil, Reynolds Freezer Paper, Reynolds Oven Cooking Bags and Reynolds Redi-Pan foil ware Consumer Durables Aluminum tubing is widely used in refrigerators, freezers and air conditioners. Kitchen utensil manufacturers use large amounts of aluminum. Distributor* Reynolds markets a fuS range of aluminum products including sheet, plate and extrusions, wire, rod and bar, and specialty items to a vast network of aluminum distributors, one of the largest growing markets for aluminum mill products. These distributors, located across the country, offer the lull range of aluminum mill products and the capability to process custom requirements. Electrical Reynolds produces a full line of top quality electrical wire and cable products and continues to expand its technological expertise and product une Farming Aluminum roofing and siding products are widely used in agricultural applications because of lightweight, low maintenance and reflectivity characteristics. Foodservice Reynolds popular line of disposable products lor loodservice includes foil, film, aluminum containers and Cushion fold sandwich wraps Flexible Packaging Hundreds of products are wrapped m toil packaged in foil laminated cartons, protected in extrusioncoated printed foil pouches and foil-lined composite cans, or marketed with a pnnted foil label Reynolds Flex-Can retortabie pouch Is shelf-stable ana offers the convenience of a can along with product quality previously associated with frozen foods Aluminum toil packaging otters a quality image and remains unchallenged as the lightest weight, lowest costeffective barrier to moisture and light oxygen and other gases. General Purpose Packaging Reynolds line of tailor-made premium shrink and stretch Reynolon film is distributed tnroughout the country for overwrapping food and non-food products such as produce, meat baked goods, toys, games, textiles and stationery. Housing Reynolds aluminum building products include siding, gutters, soffit roofing shingles, windows, sliding glass doors and extrusions. For new construction and home improvement aluminum building products offer energy conservation and low maintenance advantages. Pharmaceutical Reynolds pharmaceutical packaging materials include a line of tamper-evident pouches, blister packaging, film overwraps, foil seals and membranes, and high-technology packaging for medical devices and transdermal medication. Reynolds is a leader in developing flexible child resistant packaging and unit dose packaging systems. Powdet and Paste Aluminum powder is used by the chemical industry m biodegradable detergent and by the mining industry in explosives. Aluminum pigment gives paint a bright metallic finish, and in roof coatings it helps to reflect the sun's rays in the summer and hold in heat in the winter. Railroad Coal-fired generating stations are serviced by unit trains of railcars made of Reynolds aluminum. Reynolds supplies aluminum plate and extrusions for railcars and offers fabricated kits tor covered hopper cars and gondolas. Solar Reynolds is tne only major aluminum company selling and installing solar hot water naatmg systems. Reynolds systems can be adapted to existing not water sysiems or built into new construction projects Sold through dealers and Reynolds own solar sales operations, they are used in residential and commercial applications. Tobacco and Confectionary The oldest of the company's packaging markets. Reynolds is a major supplier of foil packaging for cigarette liner stock, chewing and smoking tobacco, and various chewing gum, candy and mint products RMC0800280000065 PRINCIPAL REYNOLDS PRODUCTS Chemicals and Ore Aluminas Cryolite. Aluminum Flouride Hydrated Alumina Fluorspar Primary aluminum Ingot and billet Molten Calcined Coke Silicon Mill products Sheet--flat and coiled Sheet--patterned and embossed Can stock--bare and coated Plate Plate--machined and sculptured Extruded shapes Tube--extruded and drawn Pipe--irrigation, drill pipe Wire, rod and bar products Forging stock Structurals and structural fabrication Light pole tubing Powders and pastes Screw machine stock Building products American Classic. Country S.de and Town 4 Country aluminum residential siding and accessories Rain carrying equipment Vinyl residential siding Soffit and trim Shutters, louvers, vents and flashing American C'ass'C and Shadowcresi aluminum roofing shingles Residential colonial columns Climate Guard insulating windows Aluminum vinyl-clad windows Climate Guard insulating sliding glass doors Climate Guard extrusions Climate Guard insulation board Painted extrusions Manufactured housing aluminum siding Commercial roofing and siding and accessories Reynorait commercial railing systems Farm roofing and siding and accessories Do-lt- Yoursetl Aluminum products Fabricated Products Custom fabricating-welding, stamping, drawing and forming, finishing 8 Integral finned tube Stadium seating Pedestrian bndges Railing systems Textile pirns and bobbins Reclamation products Molten metal Ingot Ladairod and other deoxidizing products Exothermil products Reynode cathodic protection products Flexible Packaging products Aluminum toil--plain, printed, colored, coated, and die-cut sneets and rolls Foil laminations to papers, paper board and plastics with toil surface uncoated, coated, colored or printed Reyseal heat sealable overwraps Foil heat-sealable pouch materials, printed plastic Tims Foil laminated folding cartons, printed and embossed Foil laminated labels, printed and embossed Foil containers--formed and folded, uncoated, colored, coaled Reynolds foodservice foil, film and aluminum containers. Cushion Fold sandwich wraps and bags, mterfolded sheets Reynolds Flex-Can laminated pouch material and pouches Special packaging machinery, sales and leasing Reynolon PVC shrink and stretch films Tight wrap oven film and cook-in bags Bag-in-Box Medical device packaging Beverage container products Ail-aluminum cans All-aluminum can ends Stay-on-Tab non-detachable can ends Can-making machinery Consumer Products Reynolds Wrap household aluminum toil Diamond foil Reynolds Plastic Wrap Reynolds Oven Cooking Bags Reynolds Redi-Pan foil ware Reynolds freezer paper Electrical products Stranded aluminum and aluminum alloy conductors SSAC and ACSR Line wire and service drop cables Insulated aluminum power cables Solar products Reynolds aluminum solar hot water systems 9 RMC0800280000066 MILESTONES IN REYNOLDS HISTORY 1919 U S. Foil Company. the parent ol Reynolds Metals Company, founded by R. S Reynolds. Sr. in Louisvile, Ky., to produce lead and tin toil for tobacco packaging 1926 Production of aluminum (oil began 1928 Reynolds Metals Company was formed to provide a more flexible corporate structure fortne rapidly expanding business. 1930 Foil rolling plant acquired in Richmond. Va Reynolds would soon become the industry leader in aluminum toil packaging Executive offices moved from Louisville to New York. 1936 First venture outside U.S, organized to produce aluminum foil in Havana. 1938 R. S. Reynolds went to Europe for more aluminum for his growing company He coufd not buy any m Germany, yet she was producing vast amounts. This indicated to him that Germany was planning an air war with aluminum playing a big role. Executive offices moved to Richmond. 1940 The most significant year in the company's history Mr. Reynolds decided to become a primary aluminum producer, the nation's second, to help meet America's need for aluminum. He mortgaged the company and built Reynolds first reduction plant in Alabama Bauxite mining began m Arkansas. 1941 The business began to expand rapidly. First aluminum ingot poured at Listerhill, Ala.; alumina plant sheet mill added there Reduction plant built at Longview. Wash. 1943 Reynolds pioneered bauxite mining in Jamaica, witn the development of a process to use Jamaican bauxite commercially. 1946 After WWII. U.S. aluminum capacity was many times its pre-war level. As military needs dropped, many believed civilian demand could not absorb the capacity ol private plants and that government-owned plants should be mothballed. Mr Reynolds, however, believed that the nation was ready to use ail the capacity and leased (and later purchased) six government plants, doubling the company's capacity. The company began to pioneer new uses for aluminum and would soon become a leader in innovative applications of aluminum. 1947 Reynolds Wrap household aluminum foil introduced 1950 More capacity was needed to supply new markets and the military needs for the Korean contlicL Reynolds built a reduction plant (1952) and an alumina plant (1953) m Texas, and a reduction plant in Arkansas (19541. These reduction plants were expanded in 1955. Sellwood. Va aluminum foil pnnting plant opened, to become the world's largest of its kind. Reynolds developed the first 12-ounce all-aluminum can which would revolutions beverage packaging. Began calcined coke operation at Baton Rouge S140 million company-wide plant expansion and improvement program began to use advancing technologies and improve operating efficiencies First can plant built Reynolds pioneers consumer recycling of aluminum with a pilot recycling program Reynolds exceeds billion dollar sales lor the first time. Company reorganized into divisions responsible tor profit performance. First all-aluminum engine block introduced, developed by Reynolds and General Motors Reyncids Oven Cooking Bags added to consumer products line. Multi-million dollar expansion program launched to quadruple recycling and reclamation operations Company's profit passed $100 million tor me first time. Capital program announced to construct a continuous rolling plant in Arkansas which produces aluminum toil feedstock at an energy savings of as much as 50 percent over conventional methods. Reynolds tie*-Can retortabfe pouch received FOA and USOA approval. Multi-million dollar expansion and improvement program for the McCook sheet and plate plant began to serve growing demand in distributor, transportation and container sheet markets Company became a participant in $1 billion bauxite mining and alumina project in Australia Reclamation capacity expanded with new tacilities in Alabama Michigan. Reynolds Plastic Wrap introduced. Expansion tor Quebec reducton plant began 1957 1963 1964 1967 1969 1970 1971 1974 1977 1978 I960 1961 1962 11 RMC0800280000067 RESEARCH AND DEVELOPMENT Reynolds Research and Development organization has been an important key to establishing the company's reputation as an industry innovator. Today much of Reynolds R&D is aimed at improving productivity, product quality, energy efficiency, new product development and revolutionary process innovations. The Corporate Research and Development Division provides extensive technical assistance to Reynoics operating divisions and customers and includes metallurgical research, process and product development alumina and reduction research Several operating divisions have technology functions for their product lines as well. Reynolds has pioneered many important applications for aluminum. SOME REYNOLDS "FIRSTS" Foil laminated cartons (1929) Rotogravure printing on aluminum foil (1935) Pre-fabricated aluminum aircraft parts (1942) Pioneer of aluminum siding for houses (1945) Aluminum raitroad refrigerator and boxcar (1945) Portable aluminum irrigation pipe (1946) Successful household foil. Reynoips Wrap (1947) Aluminum foil container (1948) Basic materials producer to advertise its products on network television (1951) Pre-enameled aluminum sheet (1955) Aluminum strip conductor for power transformer windings (1956) All-aluminum high strength conductor for overhead power lines (1957) Pioneer work in space program. Fabricated ballistic shell and spin launcher for Army's Jupiter-C rocket used to orbit first U.S. satellites (1957-61) Heat-shnnkable polyvinyl chloride packaging film (1958) Aluminum dnll pipe (1960) Pioneer of 12-ounce aluminum can (1963) All-aluminum, deep diving submarine (1964) Commercially feasible non-weld method for |Oinmg aluminum pipe (1966) Commercially feasible fluxless vacuum brazing of 12 aluminum (1969) All-aluminum automobile engine block (1970) Successful nationwide aluminum can recycling and reclamation program (1970) Plastic consumer oven cooking bag (1970) All-aluminum bumpers on U S. autos (1973) All-aluminum bodied car built to modem strength requirements (1973) Stay-On-Tab end for beverage cans (1975) Practical application of the retort pouch (1977) Wrought aluminum wheel (1978) Marketing of solar hot water heating systems by an aluminum producer (1978) Recycling of 1 billion pounds of aluminum by a consumer recycling program (1980) High purity alumina for optical and electronic uses (1980) Aluminum wine can (1981) Two-story all-aluminum house (1982) Aluminum concentric neutral underground electrical cable with built-in cathodic protection (1982) Specification can slock ingot made from 100% can scrap (1982) X-5? , ,i 1773 r RMC0800280000068 WHY ALUMINUM Aluminum is often called me most versatile metal because of its many advantages: Light weight--about a tnird that of copper, steel or brass. Strength--greater than structural steel in many cases. Stiffness and resistance to buckling--greater per pound than mat of the highest strength steels. Permanent Natural Beauty--apparent at first glance. Resistant to Corrosion--no red rust ever. Easy to Fabricate--one o( the most workable metals. Low Cost--pound for pound, aluminum provides three times as much material as many other common metals Long Life--a virtually indestructible metal. Electrical Conductivity--greater per pound than any other metal. High Heat Reflectivity--up to 90 percent ol the sun's heat rays. Heat Conductivity--a natural property of aluminum. Low Emmisivity--minimizes loss of heat Friendly to Foods--safeguards purity, color, flavor. Moisture-Vapor Barrier--aluminum foil helps maintain the freshness of foods longer. Non-Magnetic--important In sensitive electronic equipment Cold Strength--cold aluminum gets stronger and tougher. Recyclable--converts easily into reusable metal High Scrap Value--aluminum is worth many times that of other common materials. Energy Bank--recycling aluminum saves 95 percent of the energy needed to make the metal from ore. REYNOLDS AS A CORPORATE CITIZEN Since its inception. Reynolds has striven tc De a responsible. contriDutmg member ol tne society in which it does business. To this end. tne comcany has established a variety ot corporate programs Equal Opportunity Reynolds is an equal opportunity employer and hires and promotes regardless of race, color, creed, sex. age. national origin, religion, handicap or veteran status. Equal opportunity is a byworo in oromotions and in training programs that upgrade job skills. Employee Benefits Reynolds oelieves that its employees are its greatest asset and has established a comprehensive oenefits program that compares favorably with any industry. Company health and medical benefits include company-paid health and medical plans, including dental and eye care, and assistance to overcome personal problems. The company encourages selldevelopment and offers a tuition refund plan as well as on-the-job and other training programs Reynolds Foundation The Foundation provides funding and manages corporate contributions to educational and community projects. Reynolds and its employees have provided substantial financial and volunteer assistance for educational, civic, medical and cultural programs. Reynolds employees are encouraged to participate in worthwhile community activities. Architectural Awards Two major awards are sponsored by Reynolds and administered by the American Institute ol Architects The R. S. Reynolds Memorial Award tor distinguished architecture using aluminum (esi 1957) confers a $25,000 honorarium and onginal sculpture in aluminum from an established artist The Reynolds Aluminum Prize for Architectural Students was established to encourage creativity among America's future architects. The prize grants $5000 for the student and school to divide equally. There are two honorable mention prizes and local prizes for the winner at each participating college. Respect lor the Environment Reynolds operates its facilities in strict compliance with air, water and land use regulations. The company has invested millions of dollars in environmental controls to insure compliance with applicable standards. Representatives from several areas of expertise comprise the company's Environmental Control Committee which directs the development ot tecnnotogy (or providing adequate protection of the environment Energy Conservation Energy conservation is a top pnonty for Reynolds. Reynolds saves 95 percent of the energy required to make aluminum from bauxite ore through its aluminum recycling operations Research and development activities and operations improvement programs to improve energy efficiency are a major focus of the company. The aluminum industry in 1974 made a voluntary commitment to reduce its energy use and has passed the 18.3 percent mark in its goal of 20 percent by 1985 Community Development Reynolds was the first industrial corporation to participate directly in urban renewal protects as a developer. A subsidiary, Reynolds Metals Development Company, has assembled the technical, managerial and financial skills necessary for property development Reynolds has already sponsored development of some $400 million of new properties m renewal and community development areas, including nearly 10.000 residential units and numerous commercial and industrial buildings. Aluminum Recycling Reynolds pioneered consumer recycling of aluminum in 1967--a few years after its commercial introduction ot the aluminum beverage can--with a pilot recycling program in Miami, Fla. Since that time, consumer recycling has grown steadily throughout the United States, and Reynolds now recycles through a network of more than 2.000 buying locations across the country. In 1975. Reynolds consumer recycling business was incorporated as Reynolds Aluminum Recycling Company. Since then it has recycled more than 1.7 billion pounds of aluminum including almost 40 billion aluminum cans. The company has paid out more than $400 million to recyclers, and it has saved more than 11 billion kilowatt-hours of electricity and more than 3.4 million tons of natural resources. Reynolds recycles at a rate of more than 100 percent of the aluminum cans that it puts into the market The public receives cash lor each pound of aluminum recycled. This includes aluminum cans and certain other household aluminum such as pie plates, foil, frozen food and dinner trays, and dip, pudding and meat containers, as well as castings. The aluminum is shredded, shipped to a reclamation plant remelted and used again tor cans or other 16 aluminum products. Aluminum recycling saves 95 percent ot the energy required to make the metal from bauxite ore. Reynolds has developed the technology to recover aluminum from garbage and also has contracted to buy aluminum from several resource recovery plants around the country. The company has developed a unique mechanical system to recover aluminum from municipal refuse Two of these systems are in operation in Houston and Salem, Va Reynolds progress in this area reached a milestone in 1982 when the Houston unit recovered its one millionth pound of aluminum beverage cans from the city s solid waste In the 1970s. shredding became the primary means pi processing |unked cars. Reynolds nas expanded its program for reclaiming recyclable aluminum from auto shredder residue A multi-million dollar processing facility at the Alabama Reclamation plant reclaims aluminum from these non-ferrous residues The system also produces zinc and copper tor use in alloying or for sate on the open market Recycling and reclamation of aluminum are increasingly critical to basic metal suoply because they reduce energy requirements and conserve natural resources, providing a metal supply at an attractive investment cost Reynolds is a leader in developing technology and systems tor recycling aluminum. For the location of the nearest Reynolds recycling location, call: Toll Free 000/228-2525. RMC0800280000070 FINANCIAL DATA Stock Listing: New York Stock Exchange Ticker Symbols: Common Stock--RLM. Second Preferred Stock--RLMPRBCv Capital Stock Preferred: ($50 par value per share) 2,000.000 shares, issuable in senes, authorized: 43/,% Senes A-800.000 shares issued; 38.541 shares outstanding at December 31,1982, called for redemption m February 1983.13% Series B600,000 shares issued and outstanding at December 31,1982: held by Employee Pension Plans Trust Fund. Second Preferred: ($100 par value per share) 1,000.000 shares, issuable in series, authorized; 633,477 shares of 4'/,% convertible series issued; 310,784 shares outstanding at December 31,1982, after deducting shares converted into common stock. Number of Shareowners Common Stock Preferred Slock-4%H Senes A Preferred Stock* 13% Series B Second Preferred Stock Total 2S 196 458 1 1.660 27.335 Common: (without par value: 53.000.000 snares authorized; 19.811.167 shares outstanding at December 31,1982 The company has outstanding $39.7 million 4'/2% Convertible Subordinated Debentures due March 1, 1991 There were 1,657 debenture holders on December 31, 1982 Reynolds Metals European Capital Corporation has outstanding $37 5 million 5% Convertible Subordinated Debentures due June 1. 1988 1982 DIVIDENDS $1 75 per Common Share: S2.375 per Series A Preferred Share; $ 837 per Senes B Preferred Share, $4.50 per Second Preferred Share NET WORKING CAPITAL al 12-31-82 Current Assets: $1,278.5 Million; Current Liabilities. $708 9 Million. Net Working Capital $569.6 Million. Five-Year Summary of Reynolds Metals Company and Consolidated Subsidiaries <Aii dollar figure*, except on a share Das*. are >n millions) Net Sales Net Profit Total Assets Shareowner s Equity Total Payrolls & Employee Benefits Shareowners Equity Per Share of Common No Shareowners of Record at Year End Average No. of Employees Pnmary Aluminum Production (tons) t Amounts have been restated for the effects of the 18 consolidation of a European subsidiary 1912 $2,900.9 7.7 3.345.1 1,373.1 1,060.4 66.23 27.334 29.900 #57.700 1961 I960 1979 1976 $3,527 6t 867 53755 01 160 3 $3,369 81 177 1 $2,883 6t 1139 3 340 0t 3 146 01 2 991 5t 2 760 91 1.3634 1323 5 1.186 6 1.049 0 1.22277 1.208.2t 1.099 7t 952 77 66.75 66.90 5991 52 69 27.997 28.547 28,860 29752 35.2007 37.8007 36.400t 37.3007 959.600 1.073.400 1.093.400 1.059.900 OPERATING DATA Locstto* 'Tyee ALABAMA Listerhiil Reduction wayroi: a E3hrve<j ETpKTyeW* Emp oyee Benev.s 1941 252 $ 15.126.000 Listerhiil Alloys P*ant Alabama Reclamation ARIZONA Phoenix Extrusion Phoemx Structural Fabrication 1941 1969 2.7<5 321 5114.997.000 $ 12 706.000 * 1946 1959 691 5 26.946.000 24 5 793,000 ARKANSAS Arkadeiphia Reduction Hot Spring Continuous Rolling Hurricane Creek Alumina Jones Mills Reduction Malvern Cable CALIFORNIA Torrance Extrusion Torrance Can San Francisco Can West Coast Can End FLORIDA Tampa Can HAWAII Hawaii Can ILLINOIS McCook Sheet & Plate KENTUCKY LOuiSville No 1 Foil 1952 1979 1946 1947 1967 1955 1965 1970 1975 1965 1979 1946 1919 458 S 18.208.000 216 $ 8.646.000 818 5 33.075.000 472 5 21.579.000 H5 $ 5,484.000 79 S 2.980.000 366 S 1S.536.000 169 S 6.744.000 221 $ 8.049.000 20i S 9.285.000 115 5 3.035.000 1.606 S 70 042.000 631 S 23 953.000 Louisville No. 3 Powder & Pigment Louisville No 15 Extrusion LOUISIANA 1929 1953 Baton Rouge Calcined Coke MICHIGAN 1963 Grand Rapids Extrusion 1946 MISSOURI 142 183 53 527 Kansas City Can 1981 142 'Employment totaisete Cairo on is6i aien^es S 6.008.000 S 7.291.000 S 2.336.000 S 18.565.000 S 6.080.000 Products Anr>uat Caoac tv alloyed and unalloyed ingot silicon sheet wire. rod. bar and rolled shapes recycled aluminum ingot 8 molten aiumimum 202.000 tons 19 000 tons 423 600 tons 50 000 tons I3l.000tons extrusions, drawn tubing ana pipe fabricates structural parts tor bridges, railroad car equipment, truck frames, bumpers, etc 35 700 tons not aopt'Cabie alloyed and unalloyed ingot, extruded txiiet foil feedstock 68 CC0 ions 20G.CCO tons converts raw bauxite >nto aluminum oxide 650.000 met"C ions alloyed and unalloyed ingot, molten aluminum 125 000 tons electric wire, cable, and conductors 30 000 tons extruded and fabricated shapes aluminum cans aluminum cans easy-open beverage can ends 10 295 tons l ,460 million cans 920 million cans 3.222 million enas aluminum cans 661 ntilton cans aluminum cans 360 muhon cans sheet and piate 304.200 tons fo>l rolling lor packaging 6 Reynolds W/ao 73 089 'ons consumer and loodservice containers 382 000.000 pieces powder, paste and granules for rocket fuels, paints, explosives 19 790 tons extrusions, tubing 2\300 tors calcined coke for reduction anodes 700 000 tons extruded shapes and tub>ng 40 470 tons aluminum cans 702 million cans 21 Loca'ion/T/oe PayiOU a Esia&Jisneo Employees* Employee Be^eics NEW JERSEY Maeauley Can NEW YORK 1966 271 $ 11.860.000 Massena/St. Lawrence Reduct on WatumCan NORTH CAROLINA Salisbury Can OHIO 1959 1971 1979 793 S 29.648 000 ' 156 S 6.192.000 152 5 5.948.000 Asnviile Construction Products 1971 163 S 4 579.000 OREGON Troutdale Reduction PENNSYLVANIA Downmgtown Plant 1946 1981 505 $ 22,672,000 331 S 9.215.000 TEXAS Corpus Chrtsli San Patncio Reduction Corpus Christi SHerwin Alumina Eagle Pass Fluorspar Houston Can VIRGINIA Beflwood Extrusion Betiwood Printing Belfwood Reclamation 1952 1953 1957 1970- 1956 1957 1948 195 $ 9.809.000 778 S 32.234.000 30 % 821.000 244 S 11.000.000 423 i 12.841.000 609 S 20.498.000 104 S 3.844.000 Belfwood *44 Bristol Can End Chesterfield County Can Machinery Can Fabrication Can Equipment implementation Gronoes Plastics Richmond Foil Plant 1959 1971 1976 1978 1962 1956 1930 69 S 2.766.000 498 S 19.709.000 no S 3.659.000 61 S 2.256.000 11 S 478.000 328 S 10.179.000 789 i 28.299.000 WASHINGTON Longview Cable 1970 202 S 6.458.000 Longview Reduction 1941 753 S 31.890000 Seattle Can 1980 127 S 5.189.000 22 'EmoiO\^em iows&t oasto 198? av*M9es produCtS Anoui Caoacry aluminum cans 452 million cans alloyed and unalloyed ingot, molten aluminum, extrusion biilel and sheet ingot 126 000 tons aluminum cans 1.086 million cans aluminum cans 720 million cans aluminum sidmg. extrusions. rain carrying equipment house trim 32.700 tons alloyed and unalloyed ingot 130.000 tons printed and laminated flexible packaging materials 350.000,000 imear yards alloyed and unalloyed ingot and sheet ingot converts raw bauxite >mo aluminum oxide fluorspar aluminum cans 114,000 tons 1 700.000 metric tons 84.000 tons i .087 million cans extruded shapes, pipe, tubing, fabricated parts 36.000 tons printed and laminated foil packaging 480.000.000 linear yards recycled aluminum ingot, deoxidants, anodes 41.500 tons aluminum granules 2.000 tons sheet 22.200 tons aluminum can ends 6.01 3 million ends can making machinery not applicable can making machinery can making not applicable 60 million cans plastic films. Reynolds Plastic Wrap 16.000 tons Reynolds Wrap toil and convened products 92.920 tons freezer paper not applicable electrical wira and cable redraw rod in addition to that required for cable manufacturing alloyed and unalloyed ingot extrusion billet and motten aluminum aluminum cans 25.000 tons 35.000 tons 21000010ns 667 million cans 23 REYNOLDS DOMESTIC CAPACITIES REYNOLDS SALES INFORMATION CaWom*a, Los Angeles New Jersey. lse*m 1 Type 4 Number Of Plants Annual Capacity 5670 W.lshre Blvd. 90036 70 Wood Ave S 00830 1 Alumina (2) 2.350.000 metric tons Georgia, Atlanta Pennsylvania, Philadelphia Reduction (7) Sheet A Plate |3] 975.000 tons 750.000 tons Corporate Campus Suite 3150 * * 40 Hammond Dr N E 30328 10 Presidential &vd.. N. Baia-Cynwyd Pa 19004 Extrusion (5) Wire Rod. Bar p| 143765 tons 50 000 tons Minors, Chicago First Federal Office Plaza Texas. Dallas Sufte 430 7839 Churchill Way 75251 Aluminum Cable (2) 55.000 tons 1699 East Woodfieid Rd. Schaumburg HI. 60195 Washington, Seattle Powder. Paste & Granules (i) Foil RoNtng <21 1979C tons 166 009 tons Michigan. Detrot 16000 Northland Dr Suite 300 15446 Bel-Red Rc Redmond 98052 Continuous Rolling (1} 200.000 tons Soutnfiefd Mich 48075 plastic Films ;u Fluorspar (1) Cans HO) ^6.000 tons 84 000 tons 7.S61 million cans Missouri Si Louts 7711 Caronde<et Ave Dayton, Mo 63105 Can Ends (2) 9235 mi Non ends 1 Can Machinery ;2) Not aooiicaoie Calcined Coke n; 700 000 tons Fabricated Parts (D Not applicable Foil Printing (2) 830.000.000 (.near yards Reclamation i2) 114.500 tons Machinery (2; Not applicable Budding Products (4) 32700 tons Silicon (1) 16.000 tons 24 25 RMC0800280000074 INTERNATIONAL OPERATIONS Reynolds has t>een m the forefront of international expansion of the aluminum industry since its first plant outside the U.S. in 1936. Today Reynolds Aluminum international Services, inc. (RAISl) is the international operating subsidiary of Reynolds Metals Company which manages many of Reynolds investments in overseas operations. RAISl also has international marketing responsibility for products made in the U.S.. represents Reynolds technology worldwide and is involved with other foreign aluminum companies through engineenng, training and technical support agreements. MANUFACTURING ABROAD Subsidiaries. Associated & Related Companies (Country. Company & Products) Australia Wy&eyAiunrna Ptc,pi>tt<vvL'c Bauxite and alumina Belgium Peynoas Aluminium Eu'OpeS (ALSUROPt S ' Extrusions, foil, foil containers, plastic him Brazil Qrrn<i Mmenos L103 Bauxite MmeracooRiodoNOiieSA Bauxite Vaiesu/ Aiumm S A Pnmaryaluminum Canada Cenad-an ReynoKis Metals Compan:i <? Pnmaiy aluminum; extrusions ana fabricated products; aluminum rod. wire cable and Rat wire Reynolds Aluminum Company p! Canada Ltd Sheet building products, siding, foil, printed foil, packag-ng materials. foH equipment Reynolds Aluminum Containers Ltd Containers and cup lids Colombia Alum no Reynolds. Santo Domingo S A ialumiCj Sheet foil, extrusions impact extrusions union industrial y Asun^ros BarranQu'i'a lUNiAi $ A j Shipbuilding and metal fabrication Umco. SA Cooking utensils Egypt fg/onar A tjrruonjm Products Company Extrusions Franc# Reynolds Aluminium France 26 Painted sheet and coil Ghana Company L'd Primary aluminum Haiti Re^naduMamanMnes me Bauxite Italy Pevnofds Wnee's 3 p A Automobile wheels N^o.a f onddrpress S oA Aluminum die casting, dies Re .mows Aluminum n,vir> $ pA Extrusions Sooefri lavOM/iOni fnouSfr4-t Sheet, foil, extrusions S 0 A `S L I M > Jamaica A^jimna Paimets oIj-inmicr. iAlPARTi Bauxite and alumina jtU'wic.a Reynolds Bau*<fe Pa*meis Bauxite Mexico Reynolds Aununio SA Sneel to'l printed k>l. extrusions Netherlands R'jvnnids Aluminium Honana d v Extrusions fabricated products Philippine* Reynolds Pr>/nppine CofO&nfron Sheet foil, extrusions, utensils, furniture Spain rauSln* Havana net Alumrio SA 'tHASA/ Wire, cable, extrusions, (oil. onnted to* Thailand Reynolds Akim>niumtTnaimnO) Company Ltd Aluminum sheet and (oil Venezuela Ak mmicReynoldsde Veneso&a S A (AlPEvvENi Extrusions, tubing, roll formed products A'ununiooei Caron< SA fALCASAt Primary aluminum, sheet, foil Suoerenvases Erryal'C C A Cans and ends Wed Germany Reynolds AiumtntjfTfiverhe GmQH Extrusions Hampurgei A/ummium-Wer* CmoH Primary aluminum Reynolds A i/mmijm DeulscMand me Sheet Alunrtium OidStaOe Gmoh Alumina 2T INDUSTRY DATA United States Primary Aluminum Capaaty* Company Capacity Percent Alcoa 1 576.000 ions 28 REYNOLDS Kaiser Anaconda Conaico 97S.OOO tons 724 000 tons 360.000 tons 360.200 tons 18 13 7 7 Alumax 425.000 tons Howmet 228.200 tons Vanm Manena 275.000 tons Revere Copper & Brass 203.800 tons Noranda 225.000 tons Soulhwire 90.000 tons National Aluminum 90.000 tens U S- total 5.532.200 tors '4s 'eoo'iectv >vemoe 5 o' A;un^,.,n D-ce'r&s*:? >96? \?re 7c/t*'i ",-iv not hoc a-je >0 'OJ^Cr^ mnas c 6 4 5 4 4 4 2 100 Aluminum tnduslry Shipments 8y Markets--1982 Industry Percent ol Total Containers & Packaging* 29 Building and Construction 19 Transportation 15 Electrical 9 Exports 11 Consumer DuraOie Goods 7 Machinery & Equipment 5 Other 5 Total Soiree fte*">o/es piet.m.nz'* as incijaes * 100 Shipments (Tons) 1 789.000 1.165.500 941.500 578.000 847 500 399.500 310 000 295 000 6.126 000 U.5. Pnmary Aluminum Production. 1973-1982 Year 1982 1981 1980 1979 1978 1977 1976 1975 1974 1973 Production' 3 603 4 949 5 130 5 C23 4 804 4 539 4 251 3 679 4 903 4.529 U S. Shipments o< Products to Consumers. 1973- 1982 Vear Shipments* 1982 6 125 1981 6 681 1980 7.040 1979 7 280 1978 1977 7 215 6 493 1976 6.213 1975 4,965 1974 6 866 1973 7 343 " i-T'-Ci f' in- i! ,,.p' r ,oes --rp.--?n/ S-J >'C* Cto.mn\m-i .v C. 'V' 'r<ct ^ oO jC 'S 28 28 REYNOLDS METALS COMPANY directors HONORARY DIRECTOR David P. Reynolds Chairman of tne Board and Chief Executive Officer John E. Blomquial Vice Chairman of the Board WHHam 3. Leonhard* Vice Chairman of the Board and Chief Financial Officer WBiam 0. Bourke President and Chief Operating Officer J. Louts Reynolds Executive Vice President Reynolds Metals Company: Cnarman. Reynolds Aluminum International Serv ces. Inc OFFICERS David P. Reynolds Chairman of the Board and Chief Executive Officer John E. BJomqust Vice Chairman of the Board Raul Murphy Vice President Special Assignments Wiliam S. Leonhard* V-ce Chairman of the Board and Ch-ef F.nanoal Officer Ralph S. Thomas President and Chief Executive Officer RoDertshaw Controls Company Alien W. Merrell FormerChdirman. Satfley Company Wiliam 0. Bourke President and Chief Operating Officer J. Louis Reynolds Executive Vice Pres dent. Fleynoids Metals Company, Chairman Reyrclds Aluminum international Services. Inc Herbert Stein Professor of Economics. University of Virginia Henry R. Unden President Gas Research institute R. Bam Crowd Executive Vice President Harold L. Albrecht Vice President Purchasing and Transportation Thomas A. Graves, Jt. President College of William and Mary Net! W. ZundeJ Vice President. Mill Products Oivision Richard L Terre# Former Vice Chairman. General Motors Corporation Tom K. Smith, Jr. Former Senior Vice President Monsanto Company Jock K. Finlayson President. The Royal Bank of Canada Richard N. Bolting Vice President. Recycling and Reclamation DivtS'On Temple N. Brown Vice President. Corporate Operations Services R. Henry Featharstoo Vice President Raw Materials John H. Galea Vice President and General Counsel Rodney E. Hanneman Vice President Research. Development and Energy Resources 30 Harry V. Hefton Vice President Primary Meta.-$ DiviS'Ch Richard G. Holder vce President Fiexioie Packaging and Consumer Orisons EadH. Lucas, Jr. Vice President Electrical and Reynolds Aluminum Supply Company Drv sions John R. McG4t Vice President Personnel Paul Murphy Vice President Special Ass gnments John M. Noonan Vice President Construction Products Division Robed 0. O'Oonnefl Vice President Can Oivision Abram 0- Reynolds Vice President Alumina. Chemical and Marine Divisions W. G. Reynold*. Jr. v^ce President Government Relations and Public Affairs Robed W. Winstead Vice President Corporate Quality Assurance NeJ W.Zundel Vice President Mil Products Division Julan H. Taytor Treasurer Richard 1. Oawes Secretary David C. Basing Controller ASSISTANT OFFICERS Robed E. Lynch Assisian' "reasure' Barbara A Ketfty Assistant Secretan, Jane C Higgins Assistant Secretan, Hugh C. Stromswofd Assistant Genera- Course* and Ta Course! John H Wnght. Jr. Ass'Stan' Conroiie' REYNOLDS ALUMINUM INTERNATIONAL SERVICES, INC Randotoh N. Reynolds resiaent ana Chief Executive Officer 31 DOMESTIC SUBSIDIARIES Reynolds Aluminum Striding Products Company Sells and installs siding roofing materials, ana solar not water systems m the Northeastern states. Reynolds Metato Development Company Operating company tor real estate development projects Southern Gravure Service, Inc. Manufactures printing cylinders Eskimo Pie Corporation Markets ce cream confections through francn-sed manufacturers arid distributors Reynolds Metals Company 6603 West Broad Street Richmond. VA 2326 General Director Putric Reiatfons JoseohF Awad Office 804/28t '2171 Home. 804/282-9310 Director, Corporate Information and Group Pubfic Relations Services Robert L Shafter Office 804/281-2965 Home 804/355-2447 Director. Employee Communications and Community Rotations Roger0 Campbell Office 804/281-3987 Home 004 /794-1729 Director. Pubticabons and Communications Services Lou Anne J NaDnan Office 804/281-2258 Home 604/282-6870 Primary Metals, AJumma. Chemical, Mining and Manne; and Recycling and Reclamation Information: Group PR Manager Andrew M. Lybrook I Office 804/281-2741 Home 804/355-5808 MB Products, Becfricai, Construction Products, Solar and RASCO information: Group PR Manager Henry j. Amann. jr Office 804/281-2741 Home. 804/055-5808 Flexible Packaging Information: Group PR Manager Paula N Quick Office 804/281-3955 Home 804/747-6315 Aluminum Can and Consumer Products informsten PR Manager Berry S Tomlinson Office 804/281-3534 Home 804/740-930? REGIONAL PUBLIC RELATIONS OFFICES Little Rock 50W224-7350 Suite 105 Farm Bjreau Center 10720 Kanis Road Lithe Rock. Arit 72211 William G Conley. Manager Home 50V227-8468 Portland 503/231-9698 Suite 1260 Ltoyd Center Tower 825 NE Multnomah Street Portland. Ore 97232 Joseph N Mofiatl Manager Home 503/645-3920 Reynolds has long been committed to quality and strives to be a leader in meeting the quality challenge to American industry Reynolds management believes top quality performance contributes significantly to cost reduction, energy efficiency and productivity. The company has advanced several management and technical initiatives to improve quality. Effective use of modern quality procedures in all of its manutactunng processes is one of the company's top priorities. Statistical quality control techniques for product quality assurance prevent problems early in the production cycle and form the cornerstone of Reynolds quality program. An intensive program to involve all Reynolds employees in a renewed dedication to quality products and services began in 1982 based on the theme Our Quality Shines Through Reynolds believes that a quality company produces quality products, provides a quality workplace for its employees, contnbules to the quality of life in the communities where it operates and is a quality investment. Conversation with Jim Link of TILO plant. Dr. Vaughn Bullough, RRD, and H. M. Cole, on 4/4/79. Link: Basically, we are buying asphalt roofing flux from ASPHALT INTERNATIONALVenezuelan asphalt - from Shell Refinery. Typical properties we look for are a specific gravity between 56 to .93 - it has been running around 1.0. Material we are currently getting is running with an incoming softening point in the area of There is an ASTM Standard on it. (Softening point is determined by D-36.) Penetration value: Ue require a minimum at: 32 F., 200 gr. load, 60 second penetration time of 30 decimeters. 77 F., 100 gr. load, 5 second penetration time of 100 decimenters, (in accordance with ASTM D-5). I think we are running well over 200 on the incoming material. 100 is the absolute minimum, but we are running much softer than that. Evaporation of 325 F., 50 gr. sample is 5 hours ~ often the maximum of 0.3Z loss by weight. A minimum soluble - carbon disulfide - 99.61. Flash point often the upper minimum 550 F. Our runs are in the neighborhood of 600 or slightly over. Cole: We would like a sample of the asphalt as it comes in and probably a sample at the saturator and the coater. Link: I will send you a sample of flux saturant and the coating - probably 1 pint. Process - We take the incoming flux, which comes from a main storage tank in New Haven (by barge) - brought by truck at temperature of approximately 300 F. It is put into storage tank (steam heated) on property at Tilo and is in the 290 to 300 range. From there, we pump it into any one of 5 horizontal holding tanks which we maintain. These are large 10,000 gal. tanks, tipped on their sides, with steam burner firebox under each one for heating process. We put that flux into the tank, heat it - from the incoming temperature of about 290 to about 460 to 470 F. The flux melting point must be brought up to saturant or coating grade. We then pump it from the horizontal tank over to a vertical oxidizer tank (non-hetpt)~' a large air pump feeds it. The hose goes down through the bottom where an.air w&4ar at the bottom blows air through the coating at high temperature, material (?) 4itl8as, which drive off low volatile action there starts chemical oxidation of the material. A considerable amount of fuming is produced during this operation. We burn them off with an incinerator, as well as a power boiler. We oxidize, add heat, the temperature rises rairly rapidly (5 in a half hour to an hour). The softening point starts to rise. We take a sample every hour and run softening points on them. At the time we get to the saturant range, we look for a softening point of 133 to 140 of saturant. By that time, the material in the oxidizer is 480 to 490. At that point, they would stop oxidation and air, and pump it back into the tank (still). At that point, the material would be ready to use as saturant on the machine. Loop on the saturant: #1 or #2 still or horizontal holding tank. From that we use that to keep saturator tank (inside the plant) filled with asphalt saturant. RMC0S00280000080 -2- Material in the tank itself is kept at temperature of 450 to 470 - then, by outside tube type heater, where we circulate constantly to maintain temperature. Cooling loop: Back in oxidizer, where we ................ a softening point temperature to 205 - 215F. We over-oxidize to 230 - 235 , because we have a drop-back condition where we lose from oxidation and reaction reverses itself to some degree. We lose about 20 of softening point in the 1st hour, so we have to over-oxidize to make sure that we are ready to use it and it will be at the 205-215 range. It is pumped back into the holding tank (525). We take off a certain portion that we need on the machine, mix nitk approximately 65% with limestone type stabilizer in the mixing unit. Then bring it down to the bottom unit. Then bring over to a tank where temperature is kept at 425 F. and this is the temperature at which we use it on the sheet to put the coating on. Those are the 2 basic loops of the coating material on the machine itself. We start with a dry roofing salt (a heavy grade of cardboard type paper) and go into the saturator. Co through gates (movable roils), go down underneath level of saturant by means of a roll.... asphalt saturant comes in to replace the air and is held in the felt between the fibers. Air in felt is replaced by asphalt saturant. We may need time for the asphalt to soak in. We go into a drying section, where the saturant is still wet on the surface of the sheet. We make a number of passes through this section and give it time to dry. Next, it goes through other rolls and then the coater roll, where top coater is put on, and a back coater roll, where it is put on the back of the sheet also. Temperature of the sheet at that poing is 300 - 350 F. depending on temperature of saturant and tank. Might be as low as 250 . Can cause a serious bum, if you get it on you. The coating goes along. Granules on top surface and talc on the back surface. Only other thing we do, further along, is put on a safety shield resin, as a self sealer. We believe it is made with a propane derivative. No other solvent is brought in. We believe it is premade by other companies. Only chemical work we do is the flux oxidation itself. To the best of my knowledge, our supplier does not cut back. A little more background: Saturant and the men in section are enclosed. Pressure inside where they ... When there is a saturant break, they have to open doors on saturator and rethread it manually and remove any in the tank itself. No, they do not wear respiratory protection. Tbgy lean over and pull it out with long rods -- they wrap it around like spaghetti^'Kay average none some days and up to 5 or 6 on other days. firxxiaiiaaghi ^By tank breaks on the day sampling was done? Yes. A number of people go in on tank breaks. One is dry fill operator, the saturator operator, ... Does still operator stay right at still? The stills are outside caps for fumes over top of the stills. His job does not require him to go into the saturator. Most of his time is spent out in the area of the stills where he does his testing for softening points, with water or glycerine; he monitors the oxida tion process and is responsible for preparing the material, caking flux at coating grade and making sure there is enough material at proper temperature. RMC0800280000081 -3The Saturator operator, dry felt operator, back tender, etc. would be likely to go in on a break. (OSHA) changed the nomenclature - they did not give name of man exposed. Bullough. We may want to get more area samples. RMC0800280000082