Alcoa to Close Portovesme Smelter in Italy

  Alcoa to Close Portovesme Smelter in Italy

Business Wire

NEW YORK -- August 25, 2014

Alcoa (NYSE:AA) today announced that it intends to permanently close its
Portovesme (Carbonia-Iglesias, Italy) primary aluminum smelter, which has been
curtailed since November 2012. The closure will reduce Alcoa’s global smelting
capacity by 150,000 metric tons to 3.6 million metric tons per year.

The Portovesme smelter was curtailed in 2012 because it was one of the highest
cost smelters in the Alcoa system and had limited prospects for becoming
competitive.

“The fundamental reasons that made the Portovesme smelter uncompetitive
unfortunately have not changed,” said Bob Wilt, President, Alcoa Global
Primary Products. “We will continue to meet the commitments made to our
employees and our stakeholders, acting in good faith as we have always done.”

As committed to the government and unions, Alcoa has provided financial social
support, along with outplacement and re-employment services for employees.

The closure is aligned with Alcoa’s strategy to create a globally competitive
commodity business and lower its position on the world aluminum production
cost curve to the 38^th percentile by 2016.

Total restructuring-related charges for third quarter 2014 as a result of the
closure are expected to be between $170 million and $180 million after-tax, or
between $0.14 and $0.15 per share, of which approximately 60 percent is
non-cash.

About Alcoa

A global leader in lightweight metals technology, engineering and
manufacturing, Alcoa innovates multi-material solutions that advance our
world. Our technologies enhance transportation, from automotive and commercial
transport to air and space travel, and improve industrial and consumer
electronics products. We enable smart buildings, sustainable food and beverage
packaging, high-performance defense vehicles across air, land and sea, deeper
oil and gas drilling and more efficient power generation. We pioneered the
aluminum industry over 125 years ago, and today, our 60,000 people in 30
countries deliver value-add products made oftitanium, nickel and aluminum,
and produce best-in-class bauxite, alumina and primary aluminum products. For
more information, visit www.alcoa.com, follow @Alcoa on Twitter at
www.twitter.com/Alcoa and follow us 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 “anticipates,” “estimates,” “expects,”
“intends,” “plans,” “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, anticipated financial results or operating
performance, and statements about Alcoa’s strategies, objectives, goals,
targets, 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 Alcoa’s actual results to differ materially from
those expressed or implied in the forward-looking statements include: (a)the
inability to complete the closure of the Portovesme smelter and remediation
activities as planned or within the time period anticipated, whether due to
changes in laws, regulations, governmental policies, or other factors;
(b)changes in preliminary accounting estimates due to the significant
judgments and assumptions required; (c)the inability to lower the company’s
position on the world aluminum production cost curve and alumina refining cost
curve as planned or within the time period anticipated, whether due to
competitive factors, cost increases, delays in completing restructuring
actions, or other reasons; and (d)the other risk factors discussed in Alcoa’s
Form 10-K for the year ended December31, 2013, and other reports filed with
the Securities and Exchange Commission. Alcoa disclaims any intention or
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, + 1 212-836-2674
Kelly.Pasterick@alcoa.com
or
Media Contact
Monica Orbe, + 1 212-836-2632
Monica.Orbe@alcoa.com
or
Sonya Elam Harden, + 1 864-836-2078
Sonya.Harden@alcoa.com
 
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