Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, May 17, 1995                   TAG: 9505170055
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: Associated Press
DATELINE: COLUMBUS, OHIO                                 LENGTH: Medium

BORDEN TO SELL OFF EASTERN DAIRY PLANTS

The decision was a reversal of an earlier plan to exit the dairy business entirely. The business lost $66 million last year.

C. Robert Kidder, board chairman and chief executive officer, said keeping the dairy operations west of the Mississippi will reduce its dairy operation sales to $800 million from $1.3 billion.

The move is part of a major redesign which will divide the company into nine business units, Kidder told employees. Borden was acquired earlier this year by the New York investment firm of Kohlberg, Kravis, Roberts & Co.

``It's not to eliminate employees,'' Kidder said. ``It's not a restructuring. It's about getting the resources to where the decisions are made.''

Borden's Meadow Gold Dairy unit has operations in Roanoke. Company officials did not return calls Tuesday seeking information about the impact of the reorganization on the local plant.

However, Kidder said Borden already has potential buyers for the Eastern dairy units and may sell them within a month.

``The Western Borden and Meadow Gold dairy operations have performed consistently well and show the most potential for creating additional value,'' the company said in a statement.

The company also has canceled plans to sell Wise-Moore's Snacks, which serves the East Coast.

The nine business units will include Borden Foods International, Dairy Products, Wise-Moore's Snacks, European Bakery Products, Consumer Adhesives, Worldwide Decorative Products, Worldwide Resins, Plastic Packaging and the limited partnership of Borden Chemical and Plastics, in which Borden has a 2 percent stake.

Borden said each unit will have its own board of directors, management team and capital structure.