GenCorp Announces Major Restructuring of GDX Automotive Segment

    SACRAMENTO, Calif., March 28 GenCorp today
announced that as part of a major consolidation and rationalization of its
automotive segment, GDX Automotive, it anticipates taking a restructuring
charge of approximately $14 to $18 million in the second quarter of 2001.  The
Company expects the restructuring charge to be sufficient to cover all
anticipated plant closures and layoffs in both North America and Europe.  The
restructuring effort at GDX Automotive includes the intended closure of its
Marion, Indiana and Ballina, Ireland manufacturing facilities.
    (Photo:  http://www.newscom.com/cgi-bin/prnh/20010108/SFM125LOGO )
    "The intended plant closures are a difficult, but necessary, business
decision made by the Company to address excess capacity issues and the
continued deterioration of performance and losses at these facilities," said
Joseph Gray, President of GDX Automotive.  "We will work closely with our
employees, their unions, communities and customers in an effort to facilitate
a transition process that is as smooth as possible in the coming weeks and
months," he said.
    The Marion facility produces vehicle sealing components for major auto
makers that include Ford, General Motors and Mercedes.  Ongoing quality and
delivery problems at the plant for over three years have resulted in
significant financial losses in excess of $15 million dollars, and more
recently, have led to the loss of major business contracts.
    The Marion plant employs about 600 people and is represented by the
United Steelworkers of America.  The Company will be initiating talks with the
Union immediately and is in the process of issuing WARN notifications.  The
transition process at Marion is expected to occur in phases over the next
twelve months beginning in June.  Remaining programs at the facility will be
relocated to other GDX Automotive facilities that have yet to be determined.
    The GDX Automotive plant in Ballina manufactures vibration control
components and rubber molded products for customers that include Opel,
Volkswagen, Audi and BMW, and employs approximately 160 people, represented by
the Scientific, Industrial, Professional and Technical Union (SIPTU).  In
addition to excess capacity issues, increased difficulty in retaining plant
personnel in light of record employment levels in the region, and the strength
of the Irish Punt versus other currencies have been key factors in the
performance declines experienced at the Ballina facility.  Over the next
six months, the Company expects to transfer work at Ballina to its Rehburg,
Germany facility, and has been in discussions for some time now with Union
officials regarding the transition.
    GDX Automotive is the number two supplier of automotive vehicle seals in
the world, after completing the acquisition of the Laird Group's Draftex
International Car Body Seals Division this past December.  GDX Automotive has
19 facilities in North America and Europe, and nearly 10,000 employees
worldwide.  Parent Company, GenCorp, is a technology-based manufacturer with
leading positions that in addition to automotive include the aerospace and
defense and pharmaceutical fine chemicals industries.  For more information,
the Company's Web site is located at http://www.GenCorp.com.