ROANOKE TIMES

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

DATE: WEDNESDAY, February 10, 1993                   TAG: 9302100092
SECTION: VIRGINIA                    PAGE: A-1   EDITION: NEW RIVER VALLEY 
SOURCE: MICHAEL STOWE STAFF WRITER
DATELINE: BLACKSBURG                                LENGTH: Medium


ARSENAL PRODUCTION TO BE RETAINED IN '93

Army officials have decided to maintain present levels of production at the Radford Army Ammunition Plant through 1993 and no more job losses are expected this year, Rep. Rick Boucher, D-Abington, announced Tuesday.

"Earlier rumors concerning a potential large layoff at the arsenal during the summer of 1993 can now be put to rest," he said.

The Army's decision was welcome news for Col. Bill Forrester, who has seen more than 800 jobs lost in his six months as the arsenal's commander.

"I'm very happy," he said after Tuesday's news conference.

Last month, Army officials told Forrester that the arsenal's M203 propellant line wouldn't be funded in fiscal year 1993.

Up to 350 jobs could have been lost if the line had been discontinued.

An initial study indicated the propellant could be discontinued because the Army had plenty of it stockpiled, Boucher said. But after "extensive discussions" with his office, a decision was made to continue the line.

The Army will continue to stockpile the propellant even though its projected needs for this year already have been met, he said. No decisions have been made regarding production levels for next year.

In a speech to the Blacksburg Chamber of Commerce immediately after the news conference, Boucher said it's likely that the Army's need for propellant - the explosive charge that propels ammunition - will continue to decrease with the end of the Cold War.

But the congressman said he's confident the arsenal can attract commercial contracts enabling it to maintain and even increase employment levels. In the past two years, more than 1,300 workers have been laid off, leaving about 2,000 workers at the plant.

Boucher was in the area this week for a series of town meetings with voters and to attend the first meeting of a regional task force aimed at attracting commercial work to the arsenal.

Congress passed a defense appropriations bill last year that provides the Department of Defense with $200 million to attract commercial work to the seven active arsenals around the country.

Possible uses for the money include loan guarantees, grants and other financial incentives for private companies to begin production in vacant buildings on arsenal premises.

Boucher said the task force already has eight prospects interested in working at the Radford arsenal.

"I'm very encouraged by our progress to date, and I believe that before the year is over we will enjoy our first successes in bringing new production to the facility."


Memo: Shorter version ran in Metro edition.

by Archana Subramaniam by CNB