EXHIBIT 99.2



               SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                           FORM 11-K
                         ANNUAL REPORT
                Pursuant to Section 15(d) of the
                Securities Exchange Act of 1934





         [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF
              THE SECURITIES EXCHANGE ACT OF 1934

          For the fiscal year ended December 31, 1997

                               OR

        [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d)
             OF THE SECURITIES EXCHANGE ACT OF 1934

    For the transition period from __________ to __________




                 Commission File Number 1-1430



        A.  Full title of the plan and the address of
            the plan, if different from that of the issuer
            named below:

                    REYNOLDS METALS COMPANY
                          SAVINGS PLAN
                      FOR HOURLY EMPLOYEES


        B.  Name of issuer of the securities held
            pursuant to the plan and the address of
            its principal executive office:

                    REYNOLDS METALS COMPANY
                     6601 West Broad Street
                        P. O. Box 27003
                 Richmond, Virginia 23261-7003


<PAGE>   2
                      REQUIRED INFORMATION

               FINANCIAL STATEMENTS AND EXHIBITS



FINANCIAL STATEMENTS

                                                         Page No.

Report of Independent Auditors............................   F-1

Audited Financial Statements

 Statements of Net Assets Available for
   Plan Benefits, with Fund Information...................   F-2
 Statement of Changes in Net Assets Available
   for Plan Benefits, with Fund Information...............   F-4
 Notes to Financial Statements............................   F-5


EXHIBITS

 Exhibit A   Consent of Independent Auditors




<PAGE>   3
                           SIGNATURES

          The Plan.  Pursuant to the requirements of the
Securities Exchange Act of 1934, the Plan Committee has duly
caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.


                         REYNOLDS METALS COMPANY
                         SAVINGS PLAN FOR HOURLY EMPLOYEES




                         By: /s/ F. Robert Newman
                             -----------------------------------
                              F. Robert Newman
                              Vice President, Human Resources
                              Reynolds Metals Company and
                              Member, Plan Committee for Hourly
                              Savings Plan



DATE:  June 24, 1998


<PAGE>   F-1

      Report of Ernst & Young LLP, Independent Auditors
                              
                              
Board of Directors
Reynolds Metals Company

We have audited the accompanying statements of net assets
available for plan benefits of the Reynolds Metals Company
Savings Plan for Hourly Employees as of December 31, 1997
and 1996, and the related statement of changes in net assets
available for plan benefits for the year ended December 31,
1997. These financial statements are the responsibility of
the management of Reynolds Metals Company, the Plan's
sponsor. Our responsibility is to express an opinion on
these financial statements based on our audits.

We conducted our audits in accordance with generally
accepted auditing standards.  Those standards require that
we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above
present fairly, in all material respects, the net assets
available for plan benefits of the Plan at December 31, 1997
and 1996, and the changes in its net assets available for
plan benefits for the year ended December 31, 1997, in
conformity with generally accepted accounting principles.

Our audits were performed for the purpose of forming an
opinion on the basic financial statements taken as a whole.
The Fund Information in the statement of net assets
available for plan benefits and the statement of changes in
net assets available for plan benefits is presented for
purposes of additional analysis rather than to present the
net assets available for plan benefits and changes in net
assets available for plan benefits of each fund.  The Fund
Information has been subjected to the auditing procedures
applied in our audits of the basic financial statements and,
in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.

                                     /s/ ERNST & YOUNG LLP

Richmond, Virginia
June 19, 1998

<PAGE>   F-2

<TABLE>
                                                     Reynolds Metals Company
                                                 Savings Plan for Hourly Employees
                                        
                              Statement of Net Assets Available for Plan Benefits, with Fund Information
                                        
                                                     (Dollars in Thousands)

<CAPTION>
                                                      December 31, 1997
                                     ---------------------------------------------------------------------------------------
                                                   Fund Information
                                     ---------------------------------------------------------------------------
                                                                                                Small
                                                                                      Inter-   Capita-
                                         Reynolds  Diversified  Balanced   Interest  national  lization
                                           Stock     Equities  Investment   Income   Equities  Equities    Loan
                                           Fund       Fund        Fund       Fund      Fund      Fund      Fund      Total
                                       ---------------------------------------------------------------------------------------
<S>                                     <C>        <C>          <C>        <C>        <C>      <C>        <C>       <C>
Assets
Investment in Master Trust              $7,638     $34,654      $12,428    $139,651   $1,953   $10,108    $9,119    $215,551
Accrued income                              43           -            -           -        -         -         -          43
Contribution receivable                     30         125           84         404       23        43        13         722
                                       ---------------------------------------------------------------------------------------
Net assets available for plan benefits  $7,711     $34,779      $12,512    $140,055   $1,976   $10,151    $9,132    $216,316
                                       =======================================================================================


See accompanying notes.
</TABLE>

<PAGE>  F-3
<TABLE>
                                                   Reynolds Metals Company
                                             Savings Plan for Hourly Employees
                                        
                         Statement of Net Assets Available for Plan Benefits, with Fund Information
                                        
                                                  (Dollars in Thousands)


                                                      December 31, 1996
                                     ---------------------------------------------------------------------------------------
                                            Fund Information
                                     ---------------------------------------------------------------------------
                                                                                                Small
                                                                                      Inter-   Capita-
                                         Reynolds  Diversified  Balanced   Interest  national  lization
                                           Stock     Equities  Investment   Income   Equities  Equities    Loan
                                           Fund       Fund        Fund       Fund      Fund      Fund      Fund      Total
                                       ---------------------------------------------------------------------------------------
<S>                                     <C>       <C>           <C>        <C>        <C>      <C>        <C>       <C>
Assets
Investment in Master Trust              $3,061    $16,274       $8,334     $134,757   $1,189   $4,644     $7,744    $176,003
Accrued income                              19          -            -            -        -        -          -          19
                                       ---------------------------------------------------------------------------------------
Total assets                             3,080     16,274        8,334      134,757    1,189    4,644      7,744     176,022
                                       ---------------------------------------------------------------------------------------
Liabilities
Accounts payable and other                   1          -            -           12        -        -          -          13
                                       ---------------------------------------------------------------------------------------
Net assets available for plan benefits  $3,079    $16,274       $8,334     $134,745    $1,189   $4,644    $7,744    $176,009
                                       =======================================================================================

See accompanying notes.
</TABLE>


<PAGE>   F-4
<TABLE>

                                                   Reynolds Metals Company
                                              Savings Plan for Hourly Employees
                                        
                   Statement of Changes in Net Assets Available for Plan Benefits, with Fund Information
                                        
                                                   (Dollars in Thousands)
<CAPTION>

                                                        Year Ended December 31, 1997
                                  ---------------------------------------------------------------------------------------
                                                      Fund Information
                                  ---------------------------------------------------------------------------
                                                                                             Small
                                                                                   Inter-   Capita-
                                      Reynolds  Diversified  Balanced   Interest  national  lization
                                        Stock     Equities  Investment   Income   Equities  Equities    Loan
                                        Fund       Fund        Fund       Fund      Fund      Fund      Fund      Total
                                  ---------------------------------------------------------------------------------------
<S>                                  <C>        <C>          <C>        <C>        <C>      <C>        <C>       <C>
Additions to net assets:                                                                          
  Net investment gain (loss) from                                                                 
   Master Trust (Note 3):            $  (48)    $ 6,658      $ 1,945    $  8,343   $   23   $ 1,718    $  730    $ 19,369

Assets received from other plans         80           -            -           -        -         -         -          80
Contributions:
 Employer                               366       2,236          800      10,720      264       814         -      15,200
 Employee                               601       3,759        1,533      12,822      463     1,333         -      20,511
                                   ---------------------------------------------------------------------------------------
                                        967       5,995        2,333      23,542      727     2,147         -      35,711
                                   ---------------------------------------------------------------------------------------

Total Additions                         999      12,653        4,278      31,885      750     3,865       730      55,160

Deductions from net assets:
 Withdrawals by participants            295         733          448      12,134       71       234       425      14,340
 Assets transferred to other plans        -          35           27         398       11        27        15         513

 Administrative expenses                  -           -            -           -        -         -         -           -
                                   ---------------------------------------------------------------------------------------
Total Deductions                        295         768          475      12,532       82       261       440      14,853

Interfund transfers                   3,928       6,620          375     (14,043)     119     1,903     1,098           -
                                   ---------------------------------------------------------------------------------------

Net increase                          4,632      18,505        4,178       5,310      787     5,507     1,388      40,307

Net assets available for plan benefits:

 Beginning of year                    3,079      16,274        8,334     134,745    1,189     4,644     7,744    176,009
                                   ---------------------------------------------------------------------------------------
 End of year                         $7,711     $34,779      $12,512    $140,055   $1,976   $10,151    $9,132   $216,316
                                   =======================================================================================

See accompanying notes.

</TABLE>

<PAGE>   F-5

                   Reynolds Metals Company
              Savings Plan for Hourly Employees
                              
                Notes to Financial Statements
                              
                      December 31, 1997
                              
                   (Dollars in Thousands)
                              

1. Significant Accounting Policies

The preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the
financial statements and the reported amounts of income and
expenses during the reporting period.  Actual results could
differ from those estimates.

The accounting records of the Reynolds Metals Company
Savings Plan for Hourly Employees ("Plan") are maintained on
the accrual basis.  All securities transactions are recorded
as of the trade date.

Investments in Reynolds Metals Company Common Stock (stated
at fair value) are valued at the last reported sales price
on the last business day of the year.  Investments in mutual
funds are measured by quoted market prices and are reported
at aggregate fair value at year-end.  Guaranteed investment
contracts with insurance companies are reported at "contract
value," which equals cost plus accrued income.  Structured
investment contracts are reported at fair value, which in
the case of structured investment contracts equals contract
value.

2. Summary of Significant Plan Provisions

Reynolds Metals Company (the "Company") established the Plan
effective January 1, 1986, covering hourly employees of the
Company and certain of its subsidiaries (each an "Employer")
who are in a bargaining unit covered by a labor agreement
that incorporates the Plan by reference.  The Plan is a defined
contribution plan under the Employee Retirement Income
Security Act of 1974 ("ERISA") and qualifies as a "cash or
deferred" arrangement under Section 401(k) of the Internal
Revenue Code.  A complete description of the Plan is
contained in the Summary Plan Description and in the Plan
document, copies of which are available from the Company.

Hourly employees who are in a bargaining unit covered by a
collective bargaining agreement that incorporates the Plan 
by reference will become eligible to participate in the Plan 
on the later of (a) 30 days after beginning their employment 
with an Employer, or (b) the date on which the collective 
bargaining agreement under which they are covered first 
incorporates the Plan by reference.  Plan participation is 
voluntary.


<PAGE>   F-6
                   Reynolds Metals Company
              Savings Plan for Hourly Employees
                              
          Notes to Financial Statements (continued)
                              
                              

2. Summary of Significant Plan Provisions (continued)

Each collective bargaining agreement that incorporates the
Plan by reference provides that participants may elect to
make payroll contributions to the Plan in specified amounts
ranging from 1% to 12% of compensation in 1% increments.
Each such collective bargaining agreement may also provide
for the following types of contributions:
 
 (a) Company Matching Contributions:  At certain bargaining
     units, the applicable Employer will, subject to certain
     limitations, contribute to the Plan on behalf of each
     eligible participant, a fixed percentage of a portion
     of the payroll contributions by the participant.
 
 (b) Negotiated Deferral Contributions:  At certain
     bargaining units, the applicable Employer will
     make a contribution to a participant's account based on
     the number of hours worked by each active employee
     participating in the Plan.
 
 (c) Additional Voluntary Contributions:  
     Eligible employees who receive a profit-sharing
     award, gainsharing payment or other designated type of
     lump sum payment may contribute between 10% and 50% 
     of the award and/or payment (in 10% increments) to 
     the Plan.  Such contributions are not
     matched by the Company or any other Employer.

Participants may elect to make their contributions on a
before or after tax basis or a combination thereof.
Employer contributions (matching and negotiated deferral)
are made on a "pretax" basis.  Highly compensated
participants may be required to reduce the amount of
"pretax" contributions made to or held by the Plan on their
behalf to permit the Plan to satisfy the nondiscrimination 
requirements of Section 401(k) of the Internal Revenue Code.

Participants are fully vested in their account balances.
Withdrawals and distributions are handled in accordance with
the Plan provisions and are subject to certain regulatory
restrictions.  The trustee holds all of the Plan's
investment assets and executes transactions therein.

Although it has not expressed any intent to do so, the
Company has the right under the Plan to discontinue its
contributions at any time and to terminate the Plan subject
to the provisions of ERISA and subject to the terms of any
applicable collective bargaining agreement.


<PAGE>   F-7
                   Reynolds Metals Company
              Savings Plan for Hourly Employees
                              
          Notes to Financial Statements (continued)
                              
                              

2. Summary of Significant Plan Provisions (continued)

The Company is the Plan administrator and bears the related
costs, except for investment-related and trustee fees, which
are paid by the Plan.

3. Commingled Master Trust Investments

All of the investments of the Plan as of December 31, 1997
and 1996 were held in a Master Trust under a Master Trust
Agreement between Reynolds Metals Company and The Northern
Trust Company, as trustee, and are commingled with the
assets of three other savings plans of the Company and one
of its subsidiaries. Net assets and net investment gains
from the Master Trust are allocated to participating plans
based on the aggregate account balance of individual
participants in each Plan.

Substantially all the assets held in the Diversified
Equities Fund and the Balanced Investment Fund are invested
in the Vanguard Institutional Index Fund and the Vanguard
STAR Fund, respectively. These are no-load mutual funds held
and managed by The Vanguard Group of Investment Companies.
Substantially all of the assets held in the International
Equities Fund and the Small Capitalization Equities Fund are
invested in the T. Rowe Price Foreign Equity Fund and the T.
Rowe Price Small-Cap Value Fund, respectively. These are no-
load mutual funds held and managed by T. Rowe Price
Associates, Inc.

The assets of the Interest Income Fund generally are
invested in guaranteed investment contracts ("GICs") at
fixed rates of return and structured investment contracts
("SICs") with various insurance companies and banks.  
SICs represent high grade investments held in the name
of the Master Trust in conjunction with a corresponding
contract with the issuer of the SIC to provide a fixed or
variable rate of return (based on investment experience
and reset quarterly) on the cost of the investment.
GICs and SICs generally provide for the full 
repayment of principal and interest.   Upon the occurrence
of certain events (including layoffs by the Company or its
applicable affiliates), however, market value of the GIC or
SIC, if lower than its book value, may be repaid (a "Market
Value Adjustment").  Currently, in the opinion of the
Company, the likelihood of a material loss to the Plan as a
result of such a Market Value Adjustment is remote.  The
annual rate of return on these contracts during 1997 and
1996 was 6.3% and 6.3%, respectively.  The current yield on
these contracts at December 31, 1997 was 6.3% (6.4% at
December 31, 1996).  Interest is credited to participants'
accounts on the dollar-weighted average (blended rate)
basis.  The fair value of the Plan's GICs approximates
contract value.


<PAGE>   F-8
                   Reynolds Metals Company
              Savings Plan for Hourly Employees
                              
          Notes to Financial Statements (continued)
                              
                              

3. Commingled Master Trust Investments (continued)

No individual SIC or GIC exceeded 5% of the Master Trust's
assets, except for a SIC with Transamerica Life with a
balance of approximately $39,000.

Cash and cash equivalents of the Master Trust are invested
in a short-term investment fund managed by The Northern
Trust Company.

During 1997 and 1996, certain assets of the Plan were
transferred into other plans and from other plans of the
Company as a result of employee transfers.  There was no
effect on any participant's accounts as a result of the
transfer.

Summarized financial fund information of the commingled
accounts within the Master Trust is presented below:

<TABLE>
<CAPTION>
                                                                                                Small
                                                                                      Inter-   Capita-
                                         Reynolds  Diversified  Balanced   Interest  national  lization
                                           Stock     Equities  Investment   Income   Equities  Equities    Loan
                                           Fund       Fund        Fund       Fund      Fund      Fund      Fund      Total
                                       ---------------------------------------------------------------------------------------
<S>                                     <C>        <C>          <C>        <C>        <C>      <C>        <C>       <C>
MASTER TRUST NET
ASSETS-1997
Assets
 Accrued Income                         $  1,082                                                                    $  1,082
 Cash and cash equivalents                 2,247   $     47     $    11    $ 40,726   $     6  $    25                43,062
 Contributions receivable                    598        195         215         671        79       56    $    13      1,827
 Investments:
  Common stock                           189,068          -           -           -         -        -          -    189,068
  Investment contracts                         -          -           -     195,952         -        -          -    195,952
  Mutual funds                                 -    131,723      46,727           -    10,219   34,639          -    223,308
  Loans to participants                        -          -           -           -         -        -     19,962     19,962
                                       ---------------------------------------------------------------------------------------

Master Trust net assets                 $192,995   $131,965     $46,953    $237,349   $10,304  $34,720    $19,975   $674,261
                                       =======================================================================================
Portion of Master Trust
 allocable to the Plan                  $  7,711   $ 34,779     $12,512    $140,055   $ 1,976  $10,151    $ 9,132   $216,316
Percent                                        4%        26%         26%         59%       19%      29%        46%        32%

</TABLE>

<PAGE>   F-9
                             Reynolds Metals Company
                        Savings Plan for Hourly Employees
                                        
                    Notes to Financial Statements (continued)
                                        
                                        

3. Commingled Master Trust Investments (continued)

<TABLE>
<CAPTION>
                                                                                                Small
                                                                                      Inter-   Capita-
                                         Reynolds  Diversified  Balanced   Interest  national  lization
                                           Stock     Equities  Investment   Income   Equities  Equities    Loan
                                           Fund       Fund        Fund       Fund      Fund      Fund      Fund      Total
                                       ---------------------------------------------------------------------------------------
<S>                                     <C>        <C>          <C>        <C>        <C>      <C>        <C>       <C>
MASTER TRUST NET
ASSETS-1996
Assets
 Accrued Income                         $    997                                                                    $    997
 Cash and cash equivalents                 2,213   $    48      $     3    $ 17,070   $    4   $     3                19,341
 Contributions receivable                    259       209          183         143       56       166                 1,016
 Investments:
  Common stock                           160,346         -            -           -        -         -               160,346
  Investment contracts                         -         -            -     220,145        -         -               220,145
  Mutual funds                                 -    88,863       36,576           -    8,640    19,993               154,072
  Loans to participants                        -         -            -           -        -         -    $19,326     19,326
                                       ---------------------------------------------------------------------------------------
Total assets                             163,815    89,120       36,762     237,358    8,700    20,162     19,326    575,243

Liabilities
 Accounts payable                              1         -            -          12        -         -          -         13
                                       ---------------------------------------------------------------------------------------

Master Trust net assets                 $163,814   $89,120      $36,762    $237,346   $8,700   $20,162    $19,326   $575,230
                                       =======================================================================================

Portion of Master Trust
 allocable to the Plan                  $  3,079   $16,274      $ 8,334    $134,745   $1,189   $4,644     $ 7,744   $176,009
Percent                                        2%       18%          23%         57%      14%      23%         40%        31%

</TABLE>


<PAGE>   F-10

                                Reynolds Metals Company
                           Savings Plan for Hourly Employees
                              
                       Notes to Financial Statements (continued)
                              
                              

3. Commingled Master Trust Investments (continued)

<TABLE>
<CAPTION>
                                                                                                Small
                                                                                      Inter-   Capita-
                                         Reynolds  Diversified  Balanced   Interest  national  lization
                                           Stock     Equities  Investment   Income   Equities  Equities    Loan
                                           Fund       Fund        Fund       Fund      Fund      Fund      Fund      Total
                                       ---------------------------------------------------------------------------------------
<S>                                     <C>        <C>          <C>        <C>        <C>      <C>        <C>       <C>
CHANGES IN MASTER TRUST
ASSETS -1997
 Additions:
  Contributions from plans              $ 11,682   $ 13,182     $ 5,775    $ 28,736   $ 2,090  $ 4,979              $ 66,444
  Net realized and unrealized
   appreciation (depreciation)
   of investments                          9,977     29,085       6,564           -       109    6,267                52,002
  Interest and dividends                   4,107      1,976       1,427      15,552       135      549    $ 1,707     25,453
  Assets transferred into
     Master Trust                         11,809          -           -           -         -        -         25     11,834
                                       ---------------------------------------------------------------------------------------
                                          37,575     44,243      13,766     44,288      2,334   11,795      1,732    155,733
                                       ---------------------------------------------------------------------------------------
 Deductions:
  Distributions to plans                  19,011      7,595       2,787     23,616        800    1,623      1,270     56,702
  Administrative expenses                      -          -           -          -          -        -          -          -
                                       ---------------------------------------------------------------------------------------
                                          19,011      7,595       2,787     23,616        800    1,623      1,270     56,702
 Interfund transfers-net                  10,617      6,197        (788)   (20,669)        70    4,386        187          -
                                       ---------------------------------------------------------------------------------------
Net additions                             29,181     42,845      10,191          3      1,604   14,558        649     99,031

Master Trust net assets at
 beginning of period                     163,814     89,120      36,762    237,346      8,700   20,162     19,326    575,230
                                       ---------------------------------------------------------------------------------------
Master Trust net assets at
 end of period                          $192,995   $131,965     $46,953   $237,349    $10,304  $34,720    $19,975    $674,261
                                       =======================================================================================

</TABLE>

<PAGE>   F-11

                   Reynolds Metals Company
              Savings Plan for Hourly Employees
                              
          Notes to Financial Statements (continued)
                              
                              

4. Differences Between Financial Statements and Form 5500

The following is a reconciliation of net assets available
for benefits per the financial statements to the Form 5500:

<TABLE>
<CAPTION>
                                                 December 31
                                               1997      1996
                                            --------------------
<S>                                          <C>       <C>
Net assets available for benefits per
 the financial statements                    $216,316  $176,009
Amounts allocated to withdrawn participants       374       172
                                            --------------------
Net assets available for benefits per
 the Form 5500                               $215,942  $175,837
                                            ====================
</TABLE>

The following is a reconciliation of benefits paid to
participants per the financial statements to the Form 5500:

<TABLE>
<CAPTION>
                                              December 31
                                                 1997
                                             -------------
<S>                                            <C>
Benefits paid to participants per the
 financial statements                          $14,340
Add:  Amounts allocated on Form 5500 to
 withdrawn participants in the current year        374

Less:  Amounts allocated on Form 5500 to
 withdrawn participants in the prior year         (172)
                                             -------------

Benefits paid to participants per the Form
 5500                                          $14,542
                                             =============
</TABLE>

5. Income Tax Status

The Internal Revenue Service has determined that the Plan
qualifies under Section 401(a) of the Internal Revenue Code
(the "Code").  As long as the Plan continues to be
qualified, under Federal income tax laws and regulations
participants will not be taxed on employer contributions or
investment earnings allocated to their account.
Participants will normally be subject to tax thereon at such
time as they receive distributions from the Plan.  As long
as the Plan continues to be qualified, the Plan will not be
taxed on its dividend and interest income or any capital
gains realized by it or any unrealized appreciation of
investments.

<PAGE>
                       INDEX TO EXHIBITS



Exhibit A     Consent of Independent Auditors

<PAGE>
                                                   EXHIBIT A





               CONSENT OF INDEPENDENT AUDITORS


We consent to the incorporation by reference in the
Registration Statement (Form S-8 No. 33-66032) pertaining to
the Reynolds Metals Company Savings Plan for Hourly
Employees and in the related Prospectus of our report dated
June 19, 1998, with respect to the financial statements of
the Reynolds Metals Company Savings Plan for Hourly
Employees included in this Annual Report (Form 11-K) for the
year ended December 31, 1997.


                                /s/ ERNST & YOUNG LLP



Richmond, Virginia
June 19, 1998