Alcoa Prepares to Move Forward with Next Phase of Massena Modernization

  Alcoa Prepares to Move Forward with Next Phase of Massena Modernization

Conditionally authorizes $52 million dependent on Record of Decision from EPA

Business Wire

NEW YORK -- March 30, 2013

Alcoa today announced that it is prepared to proceed with the next phase of
the modernization of its Massena, NY operations, once the company receives a
Record of Decision (ROD) on the Grasse River that is in line with the Proposed
Remedial Action plan issued by the Environmental Protection Agency last fall.
The next phase includes spending $52 million for work that will begin in June
2013, including $10 million toward economic development in the North Country.

“Thanks to the leadership of U.S. Sen. Charles Schumer, Gov. Andrew Cuomo, the
New York Power Authority and many other government officials, employees, union
leaders and community members, we are ready to take this important step toward
modernizing our Massena facilities,” said Alcoa Executive Vice President and
President of Global Primary Products Chris Ayers. “Modernizing Massena will
help us move farther down the aluminum cost curve and secure Alcoa’s place as
a vital part of the North Country’s economy for decades to come.”

Once a ROD is received, the next phase of the modernization will include site
work and support projects in preparation for the construction of a new potline
at the location’s Massena East plant. The company expects to spend $52 million
on this modernization phase through 2015, including the $10 million commitment
toward economic development.

Under the terms of the contract, NYPA will supply power to the operations in
Massena for a term of 30 years following the expiration of Alcoa’s current
power contract in 2013, with the option to extend the contract for an
additional 10 years under certain economic conditions. In turn, Alcoa must
invest a minimum of $600 million to modernize its operations.

Forward-Looking Statements

This release contains statements that relate to future events and expectations
and as such constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
include those containing such words as “anticipates,” “expects,” “intends,”
“plans,” “scheduled,” “should,” “will,” or other words of similar meaning. All
statements that reflect Alcoa’s expectations, assumptions or projections about
the future other than statements of historical fact are forward-looking
statements. Forward-looking statements are subject to a number of known and
unknown risks, uncertainties, and other factors and are not guarantees of
future performance. Important factors that could cause actual results to
differ materially from those expressed or implied in the forward-looking
statements include: (a)material adverse changes in aluminum industry
conditions, including global supply and demand conditions and fluctuations in
London Metal Exchange-based prices for primary aluminum, alumina, and other
products; (b)deterioration in global economic and financial market conditions
generally, or unfavorable changes in the markets served by Alcoa; (c)Alcoa’s
inability to achieve the level of revenue growth, cash generation, cost
savings, improvement in profitability and margins, fiscal discipline, or
strengthening of competitiveness and operations (including moving its refining
and smelting businesses down on the industry cost curves and increasing
revenues in its Global Rolled Products and Engineered Products and Solutions
segments), anticipated from its restructuring programs, productivity
improvement, cash sustainability, and other initiatives; (d) the outcome of
contingencies, including legal proceedings, government investigations, and
environmental remediation; (e) failure to maintain investment grade credit
ratings which could limit Alcoa’s ability to obtain future financing, increase
its borrowing costs, adversely affect the market price of its existing
securities, or otherwise impair its business, financial condition and results
of operations; (f) failure to receive from the U.S. Environmental Protection
Agency a Record of Decision on the Grasse River that is consistent with the
Preliminary Remedial Action Plan dated October 1, 2012; (g) changes in project
economics, regulatory requirements, capital expenditure restrictions, an
inability to obtain financing, unexpected events beyond Alcoa’s control, or
other reasons which would preclude or make unfeasible the company’s
authorization of full implementation of the Massena East modernization plan;
and (h)the other risk factors summarized in Alcoa’s Form 10-K for the year
ended December31, 2012 and other reports filed with the Securities and
Exchange Commission. Alcoa disclaims any obligation to update publicly any
forward-looking statements, whether in response to new information, future
events or otherwise, except as required by applicable law.

About Alcoa

Alcoa is the world’s leading producer of primary and fabricated aluminum, as
well as the world’s largest miner of bauxite and refiner of alumina. In
addition to inventing the modern-day aluminum industry, Alcoa innovation has
been behind major milestones in the aerospace, automotive, packaging, building
and construction, commercial transportation, consumer electronics and
industrial markets over the past 125 years. Among the solutions Alcoa markets
are flat-rolled products, hard alloy extrusions, and forgings, as well as
Alcoa® wheels, fastening systems, precision and investment castings, and
building systems in addition to its expertise in other light metals such as
titanium and nickel-based super alloys. Sustainability is an integral part of
Alcoa’s operating practices and the product design and engineering it provides
to customers. Alcoa has been a member of the Dow Jones Sustainability Index
for 11 consecutive years and approximately 75 percent of all of the aluminum
ever produced since 1888 is still in active use today. Alcoa employs
approximately 61,000 people in 30 countries across the world. For more
information, visit www.alcoa.com and follow @Alcoa on Twitter at
twitter.com/Alcoa.

Contact:

Alcoa
Nick Ashooh, 212-836-2690
 
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