View:
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
March 14, 1996
-------------------------------------------------
(Date of Report, date of earliest event reported)
VALHI, INC.
-----------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 1-5467 87-0110150
------------------------------------------------------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
5430 LBJ Freeway, Suite 1700, Dallas, TX 75240-2697
------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(214) 233-1700
------------------------------------------------------------
(Registrant's telephone number, including area code)
Not applicable
------------------------------------------------------------
(Former name or address, if changed since last report)
Item 5: Other Events
------------
On March 14, 1996 , the Registrant issued the press
release attached hereto as Exhibit 99.1 which is incorporated
herein by reference.
Item 7: Financial Statements, Pro Forma Financial Information
-------------------------------------------------------
and Exhibits
------------
(c) Exhibit
-------
Item No. Exhibit Index
-------- -----------------------------------
99.1 Press release dated March 14, 1996
--------------
issued by the Registrant
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.
VALHI, INC.
(Registrant)
By:/s/ Steven L. Watson
----------------------------
Steven L. Watson
Vice President & Secretary
Date: March 11, 1996
--------------
Valhi to Close New Mexico MDF Plant
DALLAS, March 14, 1996: Valhi, Inc. (NYSE: VHI) announced
today that it plans to close its Medite Las Vegas, New
Mexico medium density fiberboard (MDF) operations by May 13,
1996. In connection with the closure Valhi will record a
charge of approximately $15 million after-tax ($.13 cents
per share). Cash costs net of tax benefits are not expected
to be material. Medite will continue its operations in
Oregon and The Republic of Ireland.
Michael A. Snetzer, Chairman and CEO of Medite said ``Our
decision was based upon the prohibitive additional costs
required to seek and possibly obtain long-term operating
permits, particularly in light of high operating costs of
the older multi-opening press technology employed at this
plant, the high cost of raw materials used by the plant and
a weak MDF pricing environment. These problems are
magnified by significant MDF capacity additions which have
been announced elsewhere in North America and the weak
pricing environment we expect until this new capacity can be
absorbed by the MDF market. Accordingly, we do not believe
the cost of further investment in this plant could be
recovered.'' Mr. Snetzer added ``we are presently
evaluating alternatives for disposition of the New Mexico
plant's assets.''
Medite employs approximately 120 hourly and 40 salaried
personnel in the New Mexico plant which in 1995 had sales of
$28 million to 162 customers in 36 states and seven foreign
countries. In the months between today's announcement and
final closure, Medite expects to work closely with its New
Mexico employees, customers and suppliers as well as
government officials in this period of transition to make
the adjustments which will inevitably result from closure of
the new Mexico operations.
Medite will continue to serve MDF customers from its larger
MDF plants in Ireland and Oregon which together accounted
for 1995 sales of $121 million (81% of Medite's MDF sales).
In addition to its MDF business, Medite owns and manages
170,000 acres of timberland in Southern Oregon and operates
a sawmill and veneer/wood chip facility in close proximity
to its timber holdings. These traditional timber products
activities had 1995 sales of $50 million.
In 1995, Medite's total MDF operations accounted for less
than 8% of Valhi's 1995 sales. Valhi is a major producer of
titanium dioxide pigments, refined sugar, MDF and other
products.