Alcoa to Review 460,000 Metric Tons of Smelting Capacity for Possible Curtailment

  Alcoa to Review 460,000 Metric Tons of Smelting Capacity for Possible
  Curtailment

Business Wire

NEW YORK -- May 1, 2013

Alcoa (NYSE: AA) announced today that it will review 460,000 metric tons of
smelting capacity over the next 15 months for possible curtailment to maintain
the Company’s competitiveness, as aluminum prices have fallen more than 33
percent since their peak in 2011.

The review will include facilities across the Alcoa system and will focus on
higher-cost plants and plants that have long-term risk due to factors such as
energy costs or regulatory uncertainty. The possible curtailments could affect
11 percent of Alcoa’s global smelting capacity.

Currently, the Company has 13 percent, or 568,000 metric tons of smelting
capacity idle.

“Because of persistent weakness in global aluminum prices, we need to review
every option to maintain Alcoa’s competitiveness,” said Chris Ayers, President
of Alcoa’s Global Primary Products. “Any action taken will only be done after
a thorough strategic review and consultations with stakeholders.”

When reviewing smelting capacity for possible curtailment, Alcoa will consider
a wide variety of alternative actions, ranging from discontinuing pot relining
to full plant curtailments and/or permanent shutdowns. Alcoa’s alumina
refining system will also be reviewed to reflect any curtailments in smelting
as well as prevailing market conditions.

Alcoa’s review of its primary metals operations is consistent with the
Company’s 2015 goal of lowering its position on the world aluminum production
cost curve by 10 percentage points and the alumina cost curve by 7 percentage
points.

Decisions on curtailments and/or closures will be announced as reviews are
completed.

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, follow @Alcoa on Twitter at
www.twitter.com/Alcoa and follow Alcoa on Facebook at www.facebook.com/Alcoa.

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 “estimates,” “expects,” “goal,”
“plans,” “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,
including, without limitation, forecasts concerning global demand growth for
aluminum, end market conditions, supply/demand balances, targeted financial
results or operating performance, and statements about Alcoa’s strategies,
outlook, and business and financial prospects. 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, and fluctuations in indexed-based and
spot prices for alumina; (b) deterioration in global economic and financial
market conditions generally; (c) unfavorable changes in the markets served by
Alcoa; (d) increases in energy costs, the unavailability or interruption of
energy supplies, or increases in the costs of other raw materials; (e) Alcoa’s
inability to successfully realize goals established in each of its four
business segments, at the levels or by the dates targeted for such goals
(including moving its alumina refining and aluminum smelting businesses down
on the industry cost curves and increasing revenues in its Global Rolled
Products and Engineered Products and Solutions segments); (f) political,
economic, and regulatory risks in the countries in which Alcoa operates or
sells products, including unfavorable changes in laws and governmental
policies, foreign currency exchange rates, tax rates, civil unrest, or other
events beyond Alcoa’s control; (g) the outcome of contingencies, including
legal proceedings, government investigations, and environmental remediation;
and (h) the other risk factors summarized in Alcoa’s Form 10-K for the year
ended December 31, 2012, Form 10-Q for the quarter ended March 31, 2013, 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.

Contact:

Alcoa
Investor Contact
Kelly Pasterick, 212-836-2674
Kelly.Pasterick@alcoa.com
or
Media Contact
Monica Orbe, 212-836-2632
Monica.Orbe@alcoa.com