Alcoa Plans to Curtail Smelters in Italy and Spain as part of Global Primary Restructuring

Alcoa (NYSE: AA) announced today that the Company intends to curtail
operations at three European aluminum smelters as part of a previously
announced restructuring in its Global Primary Products business. The
restructuring will reduce the Company′s global smelting capacity by 12
percent or 531,000 metric tons.

Operations at Alcoa′s Portovesme, Italy, as well as La Coruña and
Avil?s, Spain, smelters are designated for curtailment, with the
intended actions to be completed in the first half of 2012. The
facilities are among the highest-cost producers in the Alcoa system.
Last week, Alcoa announced the permanent closure of the Company′s
smelter in Alcoa, Tennessee, and two potlines at its Rockdale, Texas,
smelter.

At Portovesme, Alcoa will begin the consultation process to permanently
close the facility. The La Coruña and Avil?s curtailments are planned to
be partial and temporary. An uncompetitive energy position, combined
with rising raw material costs and falling aluminum prices, led to the
planned curtailment of the facilities.

The curtailments represent 240,000 metric tons, or about 5 percent, of
Alcoa′s global smelting capacity. Total capacity at Portovesme is
150,000 metric tons. Capacity at La Coruña and Avil?s is 87,000 and
93,000 metric tons per year, respectively.

'In today′s rapidly changing global economy, it is imperative to respond
quickly to maintain competitiveness,? said Chris Ayers, Alcoa Executive
Vice President and President, Alcoa Global Primary Products. 'This
decision was made after thorough analysis of all the possible
alternatives. We are committed to working to find solutions that will
minimize the impact on these communities and our workers there.?

Alcoa will immediately begin consultation with the relevant employee
representatives and governments. The total employment impact will not be
determined until consultations are completed. Current employment at the
three plants is about 1,500.

The curtailments will contribute to Alcoa′s long-term goal of improving
its position on the world aluminum production cost curve by 10
percentage points. This action will also increase Alcoa′s
competitiveness in the current volatile aluminum marketplace. Aluminum
prices have fallen more than 27 percent from their peak in 2011.

In addition to the closures and curtailments, Alcoa will aggressively
accelerate actions to reduce the cost of raw materials used by its
Primary Products business and will adjust capacity across the Company′s
global refining system to reflect internal demand as well as prevailing
market conditions.

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 10 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 31
countries across the world. More information can be found at www.alcoa.com.

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,? 'intends,? '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 for aluminum or
other trend projections, anticipated financial results or operating
performance, and statements about Alcoa′s strategies, 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 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;
(b) ?deterioration in global economic or financial market conditions
generally; (c) ?unfavorable changes in the end markets served by Alcoa;
(d) ?Alcoa′s inability to mitigate impacts from increases in energy costs
or the costs of other raw materials; (e) ?Alcoa′s inability to achieve
the level of cost savings, improvement in profitability and margins,
revenue growth, cash generation, fiscal discipline, or strengthening of
operations (including moving its smelting and refining businesses down
on the industry cost curve and increasing revenues in its Flat-Rolled
Products and Engineered Products and Solutions segments) anticipated
from its restructuring programs, productivity improvement, cash
sustainability and other initiatives; (f) ?political, economic, and
regulatory risks in the countries in which Alcoa operates or sells
products, including the impact of changes in foreign currency exchange
rates on costs and results, and unfavorable changes in laws and
governmental policies, civil unrest, and 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, 2010, Forms 10-Q for the quarters ended March ?31, 2011,
June ?30, 2011 and September 30, 2011, 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.

Alcoa

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