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Alcoa, CPI Announce Memorandum of Understanding to Develop Aluminum, Energy Projects

18.01.2011  |  Business Wire


Alcoa and the China Power Investment Corporation (CPI) will collaborate
on a broad range of aluminum and energy projects representing more than
$7.5 billion of potential investment over the coming years, under a
Memorandum of Understanding (MOU) signed by the companies today.


U.S. Secretary of Energy Steven Chu, Chinese Minister of Science and
Technology Wan Gang, and Administrator Zhang Guabao of the Chinese
National Energy Administration presided over the signing ceremony
between Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld and
CPI President Lu Qizhou.


The ceremony was held in Washington, DC, during Chinese President Hu
Jintao′s State Visit to the United States. The MOU represents a global,
fully integrated platform for cooperation between the two parties in
China and key markets around the world.


'This is an historic opportunity at a pivotal moment in U.S.-China
relations,? Kleinfeld said. 'Two iconic brands will be working together
around the world in a long-term relationship, sharing best practices and
experiences in promising emerging economies.?


Lu added, 'CPI is a comprehensive energy group developing and utilizing
new and clean energy sources. This MOU marks an important step for CPI
to partner with Alcoa, a leading American company in its industry, to
achieve mutually beneficial cooperation, which will bring a bright
future for all of us.?


In China, Alcoa and CPI will intensify their collaboration on developing
clean energy projects such as wind and solar and state-of-the-art
aluminum smelting operations. Both parties will also work toward
developing high-end aluminum industrial parks. Alcoa and CPI will also
expand their current trading relationship. Outside China, CPI and Alcoa
will explore opportunities in a number of geographies. The projects may
range from mining, refining and smelting to collaboration on energy
projects.


'Alcoa and CPI understand that the world's environmental challenges can
best be met through cooperation between the U.S. and China,? Kleinfeld
and Lu said, citing the MOU as an example. Alcoa is a global leader in
using hydroelectric power in the production of aluminum, and CPI has the
most clean energy assets of any Chinese utility. Alcoa and CPI will
focus heavily on the use of clean energy in their cooperation in China.

About Alcoa


Alcoa (NYSE:AA) 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.

About CPI


CPI is one of the five major power generation groups in China with an
installed capacity of 70 GW. It has the most clean energy assets among
the five groups, totaling approximately 30% of its capacity. It is also
China′s second largest aluminum producer with 2 million metric tons of
aluminum smelting capacity. It currently has three core businesses along
its industry chain ? coal, electricity and aluminum, and has established
six major industrial clusters.


Alcoa

Investor Contact

Roy Harvey, 212-836-2674

or

Media
Contact

Michael E. Belwood, 812-604-0530


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