Alcoa Continues Transforming Upstream Portfolio, Announces Strategic Review of Smelting and Refining Capacity

March 6, 2015

500,000 Metric Tons of Smelting Capacity and 2.8 Million Metric Tons of Alumina Capacity Under Review

Lightweight metals leader Alcoa (NYSE:AA) today announced that it is
continuing to aggressively transform its upstream portfolio to create a
lower cost, globally competitive commodity business. The Company said
over the next twelve months it will review 500,000 metric tons of
smelting capacity and 2.8 million metric tons of refining capacity for
possible curtailment or divestiture. The review will include facilities
across the Alcoa system.

The potential actions could affect 14 percent of Alcoa’s global smelting
capacity and 16 percent of its global refining capacity. Currently, the
Company has 19 percent, or 665,000 metric tons, of smelting capacity and
7 percent, or 1.2 million metric tons, of its global refining capacity

“Alcoa continues to take decisive action, transforming its upstream
portfolio to create a lower cost, globally competitive commodity
business,” said Bob Wilt, President of Alcoa’s Global Primary Products.
“Our goal is to move down the global aluminum cost curve to the 38th
percentile and the global alumina cost curve to the 21st
percentile by 2016. The results from this review will help achieve those
goals. We’ll take action only after a thorough strategic review to
determine the best outcome for our shareholders and in consultation with
our stakeholders.”

When reviewing capacity, Alcoa will consider a wide variety of
alternative actions, ranging from partial to full plant curtailments,
permanent shutdowns or divestitures. Decisions on curtailments, closures
or divestitures will be announced as reviews are completed.

In its Primary Metals business, the Company has curtailed, closed or
sold 1.3 million metric tons, or 31 percent, of its highest cost global
smelting capacity since 2007.

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 approximately 59,000 people in 30 countries deliver value-add
products made of titanium, nickel and aluminum, and produce
best-in-class bauxite, alumina and primary aluminum products. For more
information, visit,
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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,” “goal,” “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 the transformation of Alcoa’s
upstream portfolio, targeted financial results or operating performance,
and statements about Alcoa’s strategies, outlook, and business and
financial prospects. Forward-looking statements are subject to a number
of 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 and premiums, as
applicable, for primary aluminum, alumina, and other products, and
fluctuations in indexed-based and spot prices for alumina; (b)
deterioration in global economic and financial market conditions
generally; (c) unfavorable changes in the markets served by Alcoa; (d)
increases in energy costs, the unavailability or interruption of energy
supplies, or increases in the costs of other raw materials; (e) Alcoa’s
inability to successfully realize goals established in each of its four
business segments, at the levels or by the dates targeted for such goals
(including moving its alumina refining and aluminum smelting businesses
down on the industry cost curves and increasing revenues in its Global
Rolled Products and Engineered Products and Solutions segments); (f)
political, economic, and regulatory risks in the countries in which
Alcoa operates or sells products, including unfavorable changes in laws
and governmental policies, foreign currency exchange rates, tax rates,
civil unrest, or other events beyond Alcoa’s control; (g) the outcome of
contingencies, including legal proceedings and environmental
remediation; and (h) the other risk factors summarized in Alcoa’s Form
10-K for the year ended December 31, 2014, 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.

For Alcoa
Nahla Azmy, 212-836-2674
Sonya Harden, 864-836-2078