8-K

                                   FORM 8-K
                                CURRENT REPORT

                      SECURITIES AND EXCHANGE COMMISSION
                             Washington, DC 20549

    Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

                               October 10, 1996  




                             ZURN INDUSTRIES, INC.


                                                                 IRS Employer
    State of                      Commission                    Identification
  Incorporation                   File Number                       Number    
  Pennsylvania                      1-5502                       25-1040754


                                  Address and
                               Telephone Number
                                One Zurn Place
                           Erie, Pennsylvania  16505
                                 814-452-2111




        



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ITEM 5 - OTHER EVENTS

The Company's news release dated October 10, 1996 announcing the intent to
sell its power systems construction and equipment supply businesses is
incorporated herein by reference.


                                  SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

                                                ZURN INDUSTRIES, INC.



October 10, 1996                                /s/ John E. Rutzler III
                                                John E. Rutzler III
                                                Vice President-Controller


                                 EXHIBIT INDEX

20  Other Documents or Statements to Security Holders
    News Release dated October 10, 1996























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EX-20

                                  EXHIBIT 20


                                                FOR IMMEDIATE RELEASE
                                                October 10, 1996


ZURN INDUSTRIES TO SELL POWER SYSTEMS BUSINESSES

Erie, PA ... Zurn Industries, Inc. (NYSE: ZRN)  announced today that the
Company plans to sell its power systems units.  Commenting on the
announcement, Zurn Chairman and Chief Executive Officer Robert R. Womack said, 
"With the intent of improving Zurn Industries' overall earnings, and focusing
resources and management efforts on growing our Water Control businesses, we
intend to sell Zurn's power systems construction and equipment supply
businesses.  With fiscal 1996 revenues of $137 million, the businesses to be
sold include National Energy Production Corporation (NEPCO) of Redmond, WA
which designs, constructs and operates small to medium-sized power plants,
Zurn Energy Division of Erie, PA which produces steam generating systems and
equipment, and Zurn Air Systems Division of Birmingham, AL which manufactures
fans and equipment to control emissions.

"The decision to sell these Power Systems businesses evolved from a strategic
assessment of Zurn's strengths and ability to compete successfully in the
evolving power systems market.  This assessment concluded that the
competitiveness of Zurn's Power Systems businesses in the international market
is constrained by its available financial capacity.  For example,
international construction projects usually require letters of credit to cover
liquidated damages in the event that they might occur, as well as other
financial guarantees.  Given the magnitude of these guarantees, Zurn's
financial capacity would be seriously restricted regarding  potential
investments in our Water Control and other businesses. 

"We believe that Zurn's considerable know-how, experience and capability in
construction and power systems might be more fully utilized by a larger
organization with greater financial capacity and with expanded international
presence.  At the same time, without these businesses, Zurn will have
additional resources to invest in growing its core Water Control businesses. 
Furthermore, Zurn's earnings will be reliant on the more stable Water Control
businesses where we can utilize our manufacturing and distribution strengths."

The overall impact of this decision is not expected to be significant to
Zurn's financial position, and it will be incorporated in Zurn's financial
results for the second fiscal quarter ended September 30, 1996, scheduled to
be announced on Friday, October 18, 1996.

Zurn Industries, Inc. is an industry leader in manufacturing and marketing
plumbing products and in providing water resource construction services and
fire protection systems.
                               *  *  *  *  *  *
Contact: Steve Adams
ZURN INDUSTRIES, INC.
Erie, PA 814/452-2111
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