Reynolds Metals
Encyclopedia
Reynolds Group Holdings is an American packaging company with its roots in the Reynolds Metals Company, was the second largest aluminum company in the United States
, and the third largest in the world. The company became well known for the consumer product Reynolds Wrap as well as being a leader in developing and promoting new uses for aluminum; its RV Aluminaut
submarine was operated by Reynolds Marine Services. Headquartered for most of its existence in Richmond, Virginia
, it was acquired by Alcoa
in June 2000. Alcoa's consumer unit was acquired by Graeme Hart
, a New Zealand businessman in 2008 and named Reynolds Packaging Group. Hart's other packaging holding were merged into Reynolds to create the present Reynolds Group Holdings.
by Richard S. Reynolds, Sr.
, a nephew of tobacco king R. J. Reynolds. Initially, the new company supplied lead and tin foil wrappers to cigarette and candy companies. In 1924, the U.S. Foil purchased the manufacturer of Eskimo Pie
s, which were wrapped in foil. In 1928, Reynolds purchased Robertshaw Thermostat, Fulton Sylphon, and part of Beechnut Foil, adding them to U.S. Foil to create Reynolds Metals. In 1931 the company headquarters was moved to New York City
and in 1938 the headquarters was moved again to Richmond
, Virginia
.
The company began producing aluminum foil for packaging in 1926. Reynolds Metals created the first high-speed, gravure-printed foil, aluminum bottle labels, heat-sealed foil bags for foods and foil-laminated building insulation paper. In 1940 Reynolds Metals began mining bauxite
(aluminum ore) in Arkansas
and opened its first aluminum plant near Sheffield
, Alabama
, the following year. In 1947, the company came up with its most famous creation, Reynolds Wrap Aluminum Foil, which sells extraordinarily well in supermarkets all over the world today and transformed food storage everywhere. Meanwhile, Reynolds Metals pioneered the development of aluminum siding in 1945, and Richard S. Reynolds began predicting a growing demand for additional aluminum during peacetime. He knew it wouldn't take long before new aluminum-producing facilities would need to be built to meet demand. Reynolds Metals Company leased, and later bought, six government defense plants that were up for disposal. Reynolds later expanded into non aluminum products such as plastics and precious metals, introducing Reynolds Plastic Wrap in 1982.
Four sons of founder Richard S. Reynolds, William Gray Reynolds, Richard S. Reynolds, Jr., David P. Reynolds
, and J. Louis Reynolds, were all part of the running of the business. Richard S. Reynolds, Jr. succeeded his father as president in 1948 and under his leadership, the company underwent a major expansion with operations extended to countries around the world such as Venezuela
and the Philippines
. In 1976 David P. Reynolds, also known for his involvement in Thoroughbred horse racing
, took over as president. He was the last member of his family to head the company and would retire as its Chairman.
Reynolds Metals was a pioneer in research and development of other products less well known to the public. Not all became commercially viable for the company, such as an aluminum bus developed with ROHR Industries, and other aluminum motor vehicles, where weight advantages were literally and cost-wise surpassed by steel, plastics and fiberglass. However, when it developed the world's first aluminum submarine, dubbed Aluminaut
, the result was both an experimental product and one which participated in important work. In 1969, Aluminaut rescued Alvin (DSV-2), a smaller submersible of a newer design which continues its work 35 years later.
By 1991, Reynolds Metals employed 30,800 workers at more than 100 operations in 20 countries, including 64 plants in the United States, and had a total production capacity of more than 1 million tons of aluminum and aluminum products. The company merged with Alcoa
on May 3, 2000 to become the largest aluminum company in the United States.
near Richmond, Virginia
in Henrico County, built in 1958, is one of the finest modernist buildings by the architect Gordon Bunshaft
of Skidmore Owings & Merrill. During its use by Reynolds, the Executive Office Building was known as Reynolds EXO. It was named to the National Register of Historic Places
, one of the rare late 20th century buildings on the list.
Making extensive use of aluminum, down to threads in the carpeting, it is now owned by the University of Richmond
and serves as the worldwide headquarters of Altria Group
.
. When Alcoa purchased Reynolds, it shed some non-metals packaging and printing businesses but preserved the Reynolds consumer brand, as well as the Reynolds Kitchens, which are still across the street from the former Reynolds headquarters building. Alcoa's Reynolds division was a leader in household baking and cooking products; a sister product to Reynolds Wrap is Cut-Rite Wax paper. On January 31, 2008 the Reynolds Consumer business was sold to Graeme Hart
and is now operated as part of Reynolds Packaging Group. In an initiative led by Paul D. Thomas, Reynolds Packaging Group CEO and a former Alcoa executive, on September 21, 2008, Reynolds announced that one of the foil plants that produces Reynolds Wrap, located in downtown Richmond Virginia, will be closed and foil operations moved to Louisville KY, which is where Reynolds Wrap was originally started. A small portion of the spooling operation from the Richmond Foil plant has also been moved to the Reynolds Plant in Grove City, PA in early 2010. Hart, who has never visited Richmond since the purchase, has also subsequently closed 5 other plants within Reynolds in efforts to increase profit margins and eliminate plants that under performed. As a reflection of the recessionary times as with most companies, salaries were frozen and salaried employees have not been given any pay raises, however union employees with fixed compensation contracts were given incentive compensation. As of early 2010 all pay has been unfrozen and salaried employees have since received pay adjustments.
The cost-cutting efforts in 2008 and 2009 culminated in issuance of more debt on behalf of Reynolds in October 2009 on the Irish Stock Exchange. This issuance allowed Hart to not only recoup his initial investment in Reynolds but also get substantial returns on his investment. Hart has since been named the 110th richest person by Fortune magazine.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, and the third largest in the world. The company became well known for the consumer product Reynolds Wrap as well as being a leader in developing and promoting new uses for aluminum; its RV Aluminaut
Aluminaut
Aluminaut was built in 1964 and was the world's first aluminum submarine. The 80-ton, 51 foot manned deep-ocean research submersible was built by Reynolds Metals Company, which was seeking to advertise the utility of aluminum...
submarine was operated by Reynolds Marine Services. Headquartered for most of its existence in Richmond, Virginia
Richmond, Virginia
Richmond is the capital of the Commonwealth of Virginia, in the United States. It is an independent city and not part of any county. Richmond is the center of the Richmond Metropolitan Statistical Area and the Greater Richmond area...
, it was acquired by Alcoa
Alcoa
Alcoa Inc. is the world's third largest producer of aluminum, behind Rio Tinto Alcan and Rusal. From its operational headquarters in Pittsburgh, Pennsylvania, Alcoa conducts operations in 31 countries...
in June 2000. Alcoa's consumer unit was acquired by Graeme Hart
Graeme Hart
Graeme Hart is a New Zealand businessman reported to be the richest person in Australasia with a personal fortune of NZ$8.8 billion according to the 2009 Forbes rich list. The 2007 September 22–28 issue of the New Zealand Listener listed Hart as being the 29th most powerful New Zealander...
, a New Zealand businessman in 2008 and named Reynolds Packaging Group. Hart's other packaging holding were merged into Reynolds to create the present Reynolds Group Holdings.
History
The Reynolds Metals Company was founded in 1919 as the U.S. Foil Company in Louisville, KentuckyLouisville, Kentucky
Louisville is the largest city in the U.S. state of Kentucky, and the county seat of Jefferson County. Since 2003, the city's borders have been coterminous with those of the county because of a city-county merger. The city's population at the 2010 census was 741,096...
by Richard S. Reynolds, Sr.
Richard S. Reynolds, Sr.
Richard Samuel Reynolds, Sr. was the founder of the U.S. Foil Company.Reynolds was born on August 15, 1881 in Madison County, NC. He was the nephew of leading tobacco producer R.J. Reynolds and the son of Major Abraham David Reynolds . He married Julia Louise Parham on December 21, 1904. Reynolds...
, a nephew of tobacco king R. J. Reynolds. Initially, the new company supplied lead and tin foil wrappers to cigarette and candy companies. In 1924, the U.S. Foil purchased the manufacturer of Eskimo Pie
Eskimo Pie
Eskimo Pie is a brand name for a chocolate-covered vanilla ice cream bar wrapped in foil, the first such dessert sold in the United States. It is now marketed by Nestlé, owners of Dreyer's of the Western United States, and Edy's of the Eastern United States...
s, which were wrapped in foil. In 1928, Reynolds purchased Robertshaw Thermostat, Fulton Sylphon, and part of Beechnut Foil, adding them to U.S. Foil to create Reynolds Metals. In 1931 the company headquarters was moved to New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
and in 1938 the headquarters was moved again to Richmond
Richmond, Virginia
Richmond is the capital of the Commonwealth of Virginia, in the United States. It is an independent city and not part of any county. Richmond is the center of the Richmond Metropolitan Statistical Area and the Greater Richmond area...
, Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
.
The company began producing aluminum foil for packaging in 1926. Reynolds Metals created the first high-speed, gravure-printed foil, aluminum bottle labels, heat-sealed foil bags for foods and foil-laminated building insulation paper. In 1940 Reynolds Metals began mining bauxite
Bauxite
Bauxite is an aluminium ore and is the main source of aluminium. This form of rock consists mostly of the minerals gibbsite Al3, boehmite γ-AlO, and diaspore α-AlO, in a mixture with the two iron oxides goethite and hematite, the clay mineral kaolinite, and small amounts of anatase TiO2...
(aluminum ore) in Arkansas
Arkansas
Arkansas is a state located in the southern region of the United States. Its name is an Algonquian name of the Quapaw Indians. Arkansas shares borders with six states , and its eastern border is largely defined by the Mississippi River...
and opened its first aluminum plant near Sheffield
Sheffield
Sheffield is a city and metropolitan borough of South Yorkshire, England. Its name derives from the River Sheaf, which runs through the city. Historically a part of the West Riding of Yorkshire, and with some of its southern suburbs annexed from Derbyshire, the city has grown from its largely...
, Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
, the following year. In 1947, the company came up with its most famous creation, Reynolds Wrap Aluminum Foil, which sells extraordinarily well in supermarkets all over the world today and transformed food storage everywhere. Meanwhile, Reynolds Metals pioneered the development of aluminum siding in 1945, and Richard S. Reynolds began predicting a growing demand for additional aluminum during peacetime. He knew it wouldn't take long before new aluminum-producing facilities would need to be built to meet demand. Reynolds Metals Company leased, and later bought, six government defense plants that were up for disposal. Reynolds later expanded into non aluminum products such as plastics and precious metals, introducing Reynolds Plastic Wrap in 1982.
Four sons of founder Richard S. Reynolds, William Gray Reynolds, Richard S. Reynolds, Jr., David P. Reynolds
David P. Reynolds
David P. Reynolds was Chairman emeritus of Reynolds Metals Co. and an owner/breeder of Thoroughbred racehorses. He is the son of Richard S. Reynolds, Sr...
, and J. Louis Reynolds, were all part of the running of the business. Richard S. Reynolds, Jr. succeeded his father as president in 1948 and under his leadership, the company underwent a major expansion with operations extended to countries around the world such as Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
and the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
. In 1976 David P. Reynolds, also known for his involvement in Thoroughbred horse racing
Thoroughbred horse race
Thoroughbred horse racing is a worldwide sport and industry involving the racing of Thoroughbred horses. It is governed by different national bodies. There are two forms of the sport: Flat racing and National Hunt racing...
, took over as president. He was the last member of his family to head the company and would retire as its Chairman.
Reynolds Metals was a pioneer in research and development of other products less well known to the public. Not all became commercially viable for the company, such as an aluminum bus developed with ROHR Industries, and other aluminum motor vehicles, where weight advantages were literally and cost-wise surpassed by steel, plastics and fiberglass. However, when it developed the world's first aluminum submarine, dubbed Aluminaut
Aluminaut
Aluminaut was built in 1964 and was the world's first aluminum submarine. The 80-ton, 51 foot manned deep-ocean research submersible was built by Reynolds Metals Company, which was seeking to advertise the utility of aluminum...
, the result was both an experimental product and one which participated in important work. In 1969, Aluminaut rescued Alvin (DSV-2), a smaller submersible of a newer design which continues its work 35 years later.
By 1991, Reynolds Metals employed 30,800 workers at more than 100 operations in 20 countries, including 64 plants in the United States, and had a total production capacity of more than 1 million tons of aluminum and aluminum products. The company merged with Alcoa
Alcoa
Alcoa Inc. is the world's third largest producer of aluminum, behind Rio Tinto Alcan and Rusal. From its operational headquarters in Pittsburgh, Pennsylvania, Alcoa conducts operations in 31 countries...
on May 3, 2000 to become the largest aluminum company in the United States.
Headquarters of aluminum
Reynolds' former headquarters buildingReynolds Metals Company International Headquarters
The Reynolds Metals Company International Headquarters is an International Style building complex set in a composed landscape near Richmond, Virginia, completed in 1958. The low-rise Executive Office Building was designed by Gordon Bunshaft of Skidmore, Owings and Merrill, in collaboration with...
near Richmond, Virginia
Richmond, Virginia
Richmond is the capital of the Commonwealth of Virginia, in the United States. It is an independent city and not part of any county. Richmond is the center of the Richmond Metropolitan Statistical Area and the Greater Richmond area...
in Henrico County, built in 1958, is one of the finest modernist buildings by the architect Gordon Bunshaft
Gordon Bunshaft
Gordon Bunshaft was an architect educated at the Massachusetts Institute of Technology. In 1988, Gordon Bunshaft nominated himself for the Pritzker Prize and eventually won it.-Career:...
of Skidmore Owings & Merrill. During its use by Reynolds, the Executive Office Building was known as Reynolds EXO. It was named to the National Register of Historic Places
National Register of Historic Places
The National Register of Historic Places is the United States government's official list of districts, sites, buildings, structures, and objects deemed worthy of preservation...
, one of the rare late 20th century buildings on the list.
Making extensive use of aluminum, down to threads in the carpeting, it is now owned by the University of Richmond
University of Richmond
The University of Richmond is a selective, private, nonsectarian, liberal arts university located on the border of the city of Richmond and Henrico County, Virginia. The University of Richmond is a primarily undergraduate, residential university with approximately 4,000 undergraduate and graduate...
and serves as the worldwide headquarters of Altria Group
Altria Group
Altria Group, Inc. is based in Henrico County, Virginia, and is the parent company of Philip Morris USA, John Middleton, Inc., U.S. Smokeless Tobacco Company, Inc., Philip Morris Capital Corporation, and Chateau Ste. Michelle Wine Estates. It is one of the world's largest tobacco corporations...
.
Consumer products
The company became well known for the consumer product Reynolds Wrap. Reynolds Wrap was first made by a company called Reynolds Packaging, a business created to supply aluminum foil for packaging tobaccoTobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
. When Alcoa purchased Reynolds, it shed some non-metals packaging and printing businesses but preserved the Reynolds consumer brand, as well as the Reynolds Kitchens, which are still across the street from the former Reynolds headquarters building. Alcoa's Reynolds division was a leader in household baking and cooking products; a sister product to Reynolds Wrap is Cut-Rite Wax paper. On January 31, 2008 the Reynolds Consumer business was sold to Graeme Hart
Graeme Hart
Graeme Hart is a New Zealand businessman reported to be the richest person in Australasia with a personal fortune of NZ$8.8 billion according to the 2009 Forbes rich list. The 2007 September 22–28 issue of the New Zealand Listener listed Hart as being the 29th most powerful New Zealander...
and is now operated as part of Reynolds Packaging Group. In an initiative led by Paul D. Thomas, Reynolds Packaging Group CEO and a former Alcoa executive, on September 21, 2008, Reynolds announced that one of the foil plants that produces Reynolds Wrap, located in downtown Richmond Virginia, will be closed and foil operations moved to Louisville KY, which is where Reynolds Wrap was originally started. A small portion of the spooling operation from the Richmond Foil plant has also been moved to the Reynolds Plant in Grove City, PA in early 2010. Hart, who has never visited Richmond since the purchase, has also subsequently closed 5 other plants within Reynolds in efforts to increase profit margins and eliminate plants that under performed. As a reflection of the recessionary times as with most companies, salaries were frozen and salaried employees have not been given any pay raises, however union employees with fixed compensation contracts were given incentive compensation. As of early 2010 all pay has been unfrozen and salaried employees have since received pay adjustments.
The cost-cutting efforts in 2008 and 2009 culminated in issuance of more debt on behalf of Reynolds in October 2009 on the Irish Stock Exchange. This issuance allowed Hart to not only recoup his initial investment in Reynolds but also get substantial returns on his investment. Hart has since been named the 110th richest person by Fortune magazine.