Alcoa to Restart Idled U.S. Smelters, Fill 260 Jobs

Alcoa (NYSE:AA) today announced plans to restart idled potlines at three
aluminum smelters in the United States, creating approximately 260 new
jobs through recall and hiring. The restarted facilities will increase
Alcoa′s aluminum production by 137,000 metric tons over the course of
2011 and by 200,000 metric tons on an annual basis thereafter. The
restarts allow Alcoa to take advantage of long-term, low-cost power
options that will continue to move Alcoa down on the aluminum cost curve
and improve overall competitiveness.

Capacity will be restarted at the Massena East facility in Massena, NY;
Wenatchee Works in Malaga, WA; and Intalco in Ferndale, WA. The restarts
are occurring now to help Alcoa meet anticipated growth in aluminum
demand and to meet obligations outlined in power agreements with energy
providers.

'We compete in a global economy and power is a major cost in our
operations,? said John Thuestad, Executive Vice President and Group
President of Alcoa Primary Products. 'Thanks to continued partnerships
with our energy providers and government officials, we have been able to
secure our power needs to meet future demand, improve Alcoa′s
competitive position and provide this positive economic impact.?

Power rates at Wenatchee and Massena, where long-term contracts have
been secured, are about 40% below worldwide averages. Intalco is
operating under its current 17-month contract. All the restarts will be
powered by sustainable, renewable hydropower and will be free-cash-flow
and earnings accretive in the first year.

'We are pleased to bring jobs back and increase our economic impact in
each of these communities,? said Bob Wilt, President of Alcoa′s U.S.
Primary Products. 'Alcoa′s decisive response to the economic downturn
and favorable power rates have put us in a position to take this action.
We believe this additional capacity will be absorbed in the market as
Alcoa meets rising demand for light, strong and recyclable aluminum from
customers around the world.?

Restarting one potline at Wenatchee ensures Alcoa will meet the
requirements of a new contract with the Chelan County Public Utility
District. The new 17-year hydropower contract goes into effect in
November, 2011 and provides enough energy for increased production of
42,000 metric tons annually, bringing another 80 new jobs to the region.

At Massena East, a new agreement with the New York Power Authority
allows three potlines to restart and preserves the company′s ability to
modernize the plant in the future. It replaces an agreement that was set
to expire in April, 2011. The restart will provide about 120 new jobs
through recall or hiring, and secures the future of a total of
approximately 385 jobs that support Massena East.

Intalco is currently operating under a 17-month contract with the
Bonneville Power Administration (BPA) that provides 320 megawatts of
power at the Industrial Power rate. The restarts will bring about 60 new
jobs to the region while negotiations on a long-term contract with BPA
continue.

'We are grateful for the support we′ve received from our energy partners
and federal, state and local officials throughout this process,? said
Wilt. 'It′s through their help, and the ongoing support of our employees
and communities, that these restarts are possible.?

The restarts should be completed during the first half of 2011. Once
these restarts are complete, Alcoa will have 674,000 metric tons of idle
capacity remaining.

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 120 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 nine consecutive years and approximately
75 percent of all of the aluminum ever produced since 1888 is still in
active use today. Alcoa employs approximately 59,000 people in 31
countries across the world. More information can be found at www.alcoa.com.

Alcoa

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