WINCHESTER, VA. -- Capitol Records Friday announced plans to close its tape duplicating plant in Winchester by early 1988, putting more than 500 employes out of work.

The 535 employes at the plant were told in an assembly Friday morning that all operations at the plant, which produces half of the tapes made by Capitol, will close within a few months.

An announcement from Capitol's national headquarters in Los Angeles said the company is withdrawing from the magnetic base tape business because of competition from companies in the Far East and Europe.

The plant, which opened in 1969 to manufacture records and is now a major cassette tape duplication operation, has the capacity to produce 130,000 tapes a day.

Capitol will consolidate its cassette duplication facilities in its Jacksonville, Ill., plant. The company said it will maintain its current levels of tape production.

Winchester employes have been working three shifts to keep production going 24 hours a day, five days a week, producing 18 to 19 million country, rock, pop, classical, and easy listening tapes a year.

Plant manager Anthony Bouselli said the three Capitol Record buildings will be put up for sale.

Frederick County Supervisors Chairman Kenneth Stiles said the county will have to increase its efforts to attract new industry. "We'll have to be more aggressive than we had been," he said.endqua