SECURITIES AND EXCHANGE COMMISSION


                      WASHINGTON, DC 20549


                            FORM 8-K

                         CURRENT REPORT


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



                     September 27, 1996
       ---------------------------------------------------

        (Date of Report, date of earliest event reported)




                       KEYSTONE CONSOLIDATED INDUSTRIES, INC.
--------------------------------------------------------------------------------

     (Exact name of Registrant as specified in its charter)


          Delaware                        1-3919               37-0364250
---------------------------        ---------------------    -----------------

(State or other jurisdiction       (Commission File No.)    (IRS Employer
 of incorporation or                            Identification No.)
 organization)


 5430 LBJ Freeway, Suite 1740, Three Lincoln Centre, Dallas, TX     75240-2697
--------------------------------------------------------------------------------

(Address of principal executive offices)                         (Zip Code)



 Registrant's telephone number, including area code:    (972) 458-0028
                                                      ------------------




                        Not applicable
     ---------------------------------------------------------

     (Former name or address, if changed since last report)


Item 2: Acquisition or Disposition of Assets
        ------------------------------------


     On September 27, 1996, the stockholders of Keystone Consolidated
Industries, Inc. ("Keystone") and DeSoto, Inc. ("DeSoto") approved the merger of
the two companies (the "Merger") and upon completion of the Merger, DeSoto
became a wholly-owned subsidiary of Keystone.  Keystone will exchange
approximately 3.5 million shares of its common stock (approximately $29.3
million at the $8.38 per share market price on September 27, 1996) and 435,458
shares of Keystone preferred stock ($3.5 million) for all of the outstanding
common stock and preferred stock, respectively, of DeSoto.  Each DeSoto
stockholder will receive .7465 of a share of Keystone stock for each share of
DeSoto stock (the "Exchange Ratio").
     In connection with the Merger, Keystone also assumed each of the
approximately 184,000 outstanding options to purchase DeSoto common stock and
converted each DeSoto option to an option to acquire that number of shares of
Keystone common stock equal to the number of shares of DeSoto common stock
subject to such DeSoto option multiplied by the Exchange Ratio.  The exercise
prices of such DeSoto options were adjusted by dividing the DeSoto option
exercise prices by the Exchange Ratio.  The other terms of the DeSoto options
were unchanged.

     Keystone also assumed 600,000 warrants to acquire DeSoto common stock and
converted the DeSoto warrants to Keystone warrants with the number and exercise
price of the DeSoto warrants multiplied and divided, respectively, by the
Exchange Ratio.

     Simultaneous with the Merger, Keystone's three underfunded defined benefit
pension plans were merged with and into DeSoto's overfunded defined benefit
pension plan which results in an overfunded plan for financial reporting
purposes and therefore should result in reduced future pension expense and
contributions by Keystone.

     In addition, Keystone's current seven-member Board of Directors was
expanded to nine members, adding former DeSoto directors William Spier and
William P. Lyons.

     Pursuant to the Merger Agreement, Keystone is obligated to cause DeSoto, as
soon as possible after consummation of the Merger, to pay approximately $6.5
million to certain of DeSoto's trade creditors who are parties to a trade
composition agreement with DeSoto and an additional approximately $1.5 million
to such trade creditors within one year of the Merger.  Additionally, Keystone
is obligated to pay immediately to the holders of DeSoto preferred stock all
unpaid dividend arrearages, which amounts to approximately $1.6 million.
     As a result of these and other transactions related to the Merger, Keystone
required additional funding from its primary lender.  In order to obtain such
additional funds, Keystone received the consent of the Pension Benefit Guaranty
Corporation (the "PBGC") to increase Keystone's allowable borrowings by $20
million upon consummation of the Merger and the merger of the Keystone defined
benefit pension plans with and into the DeSoto defined benefit pension plan.
The PBGC's consent was necessary due to Keystone's prior agreements with the
PBGC whereby the PBGC and Keystone agreed to certain borrowing restrictions.

     For financial reporting purposes, Keystone will account for the Merger as a
purchase.

     DeSoto manufactures household cleaning products including powdered and
liquid laundry detergents and performs contract manufacturing and packaging of
household cleaning products.  Incorporated in Delaware in 1927, DeSoto's
principal executive offices and its operating facility are located at 900 East
Washington Street, Joliet, Illinois 60433. DeSoto's telephone number is (815)
727-4931.  Keystone will continue to operate the Joliet facility following the
Merger.


Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
        ------------------------------------------------------------------


        (a)  Consolidated Financial Statements of DeSoto, Inc. (Incorporated by
             reference to Pages F-1 to F-26 of Registrant's Amendment No. 1 to
             Form S-4 dated August 23, 1996):

             Audited Consolidated Financial Statements:
               Balance Sheets - December 31, 1995 and 1994
               Statements of Operations - years ended December 31, 1995, 1994
               and 1993
               Statements of Cash Flows - years ended December 31, 1995, 1994,
               and 1993
             Unaudited Consolidated Condensed Financial Statements:
               Balance Sheet - June 30, 1996
               Statements of Operations - six months ended June 30, 1996 and
               1995
               Statements of Cash Flows - six months ended June 30, 1996 and
               1995

        (b)  Pro forma financial information (Incorporated by reference to Pages
             P-1 to P-11 of Registrant's Amendment No. 1 to Form S-4 dated
             August 23, 1996):

               Unaudited Pro Forma Condensed Financial Statements:
                 Keystone Consolidated Industries, Inc.:
                  Balance Sheet - June 30, 1996
                  Statement of Operations - year ended December 31, 1995
                  Statement of Operations - six months ended June 30, 1996

                 DeSoto, Inc.:
                  Statement of Operations - year ended December 31, 1995
                  Statement of Operations - six months ended June 30, 1996




        (c)  Exhibit
             -------


             Exhibit No.                  Description of Exhibit
             -----------         -----------------------------------------


             2.1           Agreement and Plan of Reorganization, dated as of
                           June 26, 1996, between Registrant and DeSoto, Inc.
                           (Incorporated by Reference to Exhibit 2.1 of
                           Registrant's Amendment No. 1 to Form S-4 dated
                           August 23, 1996).

             23.1          Consent of Arthur Andersen, LLP

             99.1          Press Release dated September 27, 1996 issued by
                           Registrant


                           SIGNATURES
                           ----------



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



                                 KEYSTONE CONSOLIDATED INDUSTRIES, INC.
                                 --------------------------------------

                                               (Registrant)



                                 By  /s/ Harold M. Curdy
                                     ----------------------------------

                                    Harold M. Curdy
                                    Vice President - Finance/Treasurer
                                    (Principal Financial Officer)


                                 By  /s/ Bert E. Downing, Jr.
                                     -----------------------------------

                                    Bert E. Downing, Jr.
                                    Corporate Controller
                                    (Principal Accounting Officer)
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SECURITIES AND EXCHANGE COMMISSION

                      WASHINGTON, DC 20549

                            FORM 8-K

                         CURRENT REPORT

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

                     September 27, 1996
       ---------------------------------------------------

        (Date of Report, date of earliest event reported)

                       KEYSTONE CONSOLIDATED INDUSTRIES, INC.
--------------------------------------------------------------------------------

     (Exact name of Registrant as specified in its charter)

          Delaware                        1-3919               37-0364250
---------------------------        ---------------------    -----------------

(State or other jurisdiction       (Commission File No.)    (IRS Employer
 of incorporation or                            Identification No.)
 organization)

 5430 LBJ Freeway, Suite 1740, Three Lincoln Centre, Dallas, TX     75240-2697
--------------------------------------------------------------------------------

(Address of principal executive offices)                         (Zip Code)

 Registrant's telephone number, including area code:    (972) 458-0028
                                                      ------------------

                        Not applicable
     ---------------------------------------------------------

     (Former name or address, if changed since last report)

Item 2: Acquisition or Disposition of Assets
        ------------------------------------

     On September 27, 1996, the stockholders of Keystone Consolidated
Industries, Inc. ("Keystone") and DeSoto, Inc. ("DeSoto") approved the merger of
the two companies (the "Merger") and upon completion of the Merger, DeSoto
became a wholly-owned subsidiary of Keystone.  Keystone will exchange
approximately 3.5 million shares of its common stock (approximately $29.3
million at the $8.38 per share market price on September 27, 1996) and 435,458
shares of Keystone preferred stock ($3.5 million) for all of the outstanding
common stock and preferred stock, respectively, of DeSoto.  Each DeSoto
stockholder will receive .7465 of a share of Keystone stock for each share of
DeSoto stock (the "Exchange Ratio").
     In connection with the Merger, Keystone also assumed each of the
approximately 184,000 outstanding options to purchase DeSoto common stock and
converted each DeSoto option to an option to acquire that number of shares of
Keystone common stock equal to the number of shares of DeSoto common stock
subject to such DeSoto option multiplied by the Exchange Ratio.  The exercise
prices of such DeSoto options were adjusted by dividing the DeSoto option
exercise prices by the Exchange Ratio.  The other terms of the DeSoto options
were unchanged.

     Keystone also assumed 600,000 warrants to acquire DeSoto common stock and
converted the DeSoto warrants to Keystone warrants with the number and exercise
price of the DeSoto warrants multiplied and divided, respectively, by the
Exchange Ratio.

     Simultaneous with the Merger, Keystone's three underfunded defined benefit
pension plans were merged with and into DeSoto's overfunded defined benefit
pension plan which results in an overfunded plan for financial reporting
purposes and therefore should result in reduced future pension expense and
contributions by Keystone.

     In addition, Keystone's current seven-member Board of Directors was
expanded to nine members, adding former DeSoto directors William Spier and
William P. Lyons.

     Pursuant to the Merger Agreement, Keystone is obligated to cause DeSoto, as
soon as possible after consummation of the Merger, to pay approximately $6.5
million to certain of DeSoto's trade creditors who are parties to a trade
composition agreement with DeSoto and an additional approximately $1.5 million
to such trade creditors within one year of the Merger.  Additionally, Keystone
is obligated to pay immediately to the holders of DeSoto preferred stock all
unpaid dividend arrearages, which amounts to approximately $1.6 million.
     As a result of these and other transactions related to the Merger, Keystone
required additional funding from its primary lender.  In order to obtain such
additional funds, Keystone received the consent of the Pension Benefit Guaranty
Corporation (the "PBGC") to increase Keystone's allowable borrowings by $20
million upon consummation of the Merger and the merger of the Keystone defined
benefit pension plans with and into the DeSoto defined benefit pension plan.
The PBGC's consent was necessary due to Keystone's prior agreements with the
PBGC whereby the PBGC and Keystone agreed to certain borrowing restrictions.

     For financial reporting purposes, Keystone will account for the Merger as a
purchase.

     DeSoto manufactures household cleaning products including powdered and
liquid laundry detergents and performs contract manufacturing and packaging of
household cleaning products.  Incorporated in Delaware in 1927, DeSoto's
principal executive offices and its operating facility are located at 900 East
Washington Street, Joliet, Illinois 60433. DeSoto's telephone number is (815)
727-4931.  Keystone will continue to operate the Joliet facility following the
Merger.

Item 7: Financial Statements, Pro Forma Financial Information and Exhibits
        ------------------------------------------------------------------

        (a)  Consolidated Financial Statements of DeSoto, Inc. (Incorporated by
             reference to Pages F-1 to F-26 of Registrant's Amendment No. 1 to
             Form S-4 dated August 23, 1996):

             Audited Consolidated Financial Statements:
               Balance Sheets - December 31, 1995 and 1994
               Statements of Operations - years ended December 31, 1995, 1994
               and 1993
               Statements of Cash Flows - years ended December 31, 1995, 1994,
               and 1993
             Unaudited Consolidated Condensed Financial Statements:
               Balance Sheet - June 30, 1996
               Statements of Operations - six months ended June 30, 1996 and
               1995
               Statements of Cash Flows - six months ended June 30, 1996 and
               1995

        (b)  Pro forma financial information (Incorporated by reference to Pages
             P-1 to P-11 of Registrant's Amendment No. 1 to Form S-4 dated
             August 23, 1996):

               Unaudited Pro Forma Condensed Financial Statements:
                 Keystone Consolidated Industries, Inc.:
                  Balance Sheet - June 30, 1996
                  Statement of Operations - year ended December 31, 1995
                  Statement of Operations - six months ended June 30, 1996

                 DeSoto, Inc.:
                  Statement of Operations - year ended December 31, 1995
                  Statement of Operations - six months ended June 30, 1996

        (c)  Exhibit
             -------

             Exhibit No.                  Description of Exhibit
             -----------         -----------------------------------------

             2.1           Agreement and Plan of Reorganization, dated as of
                           June 26, 1996, between Registrant and DeSoto, Inc.
                           (Incorporated by Reference to Exhibit 2.1 of
                           Registrant's Amendment No. 1 to Form S-4 dated
                           August 23, 1996).

             23.1          Consent of Arthur Andersen, LLP

             99.1          Press Release dated September 27, 1996 issued by
                           Registrant

                           SIGNATURES
                           ----------

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

                                 KEYSTONE CONSOLIDATED INDUSTRIES, INC.
                                 --------------------------------------

                                               (Registrant)

                                 By  /s/ Harold M. Curdy
                                     ----------------------------------

                                    Harold M. Curdy
                                    Vice President - Finance/Treasurer
                                    (Principal Financial Officer)

                                 By  /s/ Bert E. Downing, Jr.
                                     -----------------------------------

                                    Bert E. Downing, Jr.
                                    Corporate Controller
                                    (Principal Accounting Officer)