Alcoa to Close or Curtail 164,000 Metric Tons of Smelting Capacity

lcoa to Close or Curtail 164,000 Metric Tons of Smelting CapacityAlcoa (NYSE: AA) today announced that it will close or curtail 164,000metric tons (mt) of smelting capacity in the United States and Brazil aspart of its smelting capacity review that was announced in May. One potline representing 40,000 metric tons at the Massena East plant in NewYork will be permanently closed. In addition, the Company has started totemporarily curtail 124,000 metric tons at its smelters in Brazil. Theclosures and curtailments will be complete by the end of September. "We committed in May to review our global smelting capacity for possiblecurtailment to maintain the Company's competitiveness," said Bob Wilt,president of Alcoa's Global Primary Products. "Aluminum prices, includingpremiums, have fallen to four-year lows and we continue to operate in anuncertain, volatile market." Wilt added that the Company will work with stakeholders in affectedcommunities to minimize the impact of the closures and curtailments. To date, Alcoa has announced closures or curtailments representing 269,000metric tons of the 460,000 metric tons placed under review in May. Thisincludes the permanent closure of 105,000 metric tons of capacity announcedearlier at Alcoa's Baie-Comeau smelter in Canada. In addition, the Companypermanently closed its Fusina, Italy smelter representing 44,000 metric tonsthat was not part of the May review. Once the Massena and Brazil closures and curtailments are complete, Alcoawill have 16 percent, or 646,800 metric tons of smelting capacity idle. Alcoa's review of its primary metals operations is consistent with theCompany's 2015 goal of lowering its position on the world aluminumproduction cost curve by 10 percentage points and the alumina cost curve by7 percentage points. Total restructuring-related charges for third quarter 2013 associated withthe above actions are expected to be between $5 and $10 million after-tax,or $0.01 per share, of which approximately 50 percent is non-cash. About Alcoa Alcoa is the world's leading producer of primary and fabricated aluminum, aswell as the world's largest miner of bauxite and refiner of alumina. Inaddition to inventing the modern-day aluminum industry, Alcoa innovation hasbeen behind major milestones in the aerospace, automotive, packaging,building and construction, commercial transportation, consumer electronicsand industrial markets over the past 125 years. Among the solutions Alcoamarkets are flat-rolled products, hard alloy extrusions, and forgings, aswell as Alcoa(R) wheels, fastening systems, precision and investmentcastings, and building systems in addition to its expertise in other lightmetals such as titanium and nickel-based super alloys. Sustainability is anintegral part of Alcoa's operating practices and the product design andengineering it provides to customers. Alcoa has been a member of the DowJones Sustainability Index for 11 consecutive years and approximately 75percent of all of the aluminum ever produced since 1888 is still in activeuse today. Alcoa employs approximately 61,000 people in 30 countries acrossthe world. For more information, visit www.alcoa.com, follow @Alcoa onTwitter at www.twitter.com/Alcoa and follow Alcoa on Facebook atwww.facebook.com/Alcoa. Forward-Looking Statements This release contains statements that relate to future events andexpectations and as such constitute forward-looking statements within themeaning 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 ofsimilar meaning. All statements that reflect Alcoa's expectations,assumptions or projections about the future other than statements ofhistorical fact are forward-looking statements, including, withoutlimitation, forecasts concerning global demand growth for aluminum, endmarket conditions, supply/demand balances, targeted financial results oroperating performance, and statements about Alcoa's strategies, outlook, andbusiness and financial prospects. Forward-looking statements are subject toa number of known and unknown risks, uncertainties, and other factors andare not guarantees of future performance. Important factors that could causeactual results to differ materially from those expressed or implied in theforward-looking statements include: (a) material adverse changes in aluminumindustry conditions, including global supply and demand conditions andfluctuations in London Metal Exchange-based prices for primary aluminum,alumina, and other products, and fluctuations in indexed-based and spotprices for alumina; (b) deterioration in global economic and financialmarket conditions generally; (c) unfavorable changes in the markets servedby Alcoa; (d) Alcoa's inability to successfully realize goals established ineach of its four business segments, at the levels or by the dates targetedfor such goals (including moving its alumina refining and aluminum smeltingbusinesses down on the industry cost curves and increasing revenues in itsGlobal Rolled Products and Engineered Products and Solutions segments); (e)political, economic, and regulatory risks in the countries in which Alcoaoperates or sells products, including unfavorable changes in laws andgovernmental policies, foreign currency exchange rates, tax rates, civilunrest, or other events beyond Alcoa's control; (f) changes in preliminaryaccounting estimates due to the significant judgments and assumptionsrequired; and (g) the other risk factors summarized in Alcoa's Form 10-K forthe year ended December 31, 2012, Forms 10-Q for the quarters ended March31, 2013 and June 30, 2013, and other reports filed with the Securities andExchange Commission. Alcoa disclaims any obligation to update publicly anyforward-looking statements, whether in response to new information, futureevents or otherwise, except as required by applicable law.