Alcoa and CPI Finalize Agreement to Establish Joint Venture Company to Produce High-End Fabricated Aluminum Products

February 21, 2012

JV company to serve growing aerospace, automotive, commercial
transportation, consumer electronics and packaging markets

NEW YORK & BEIJING–Alcoa (NYSE:AA) and China Power Investment Corporation (CPI) announced
today they have finalized an agreement to establish a joint venture
company to produce high-end fabricated aluminum products for the China
market. Alcoa Chairman and CEO Klaus Kleinfeld and CPI President Lu
Qizhou signed the agreement today in Beijing at the Great Hall of the
People. Also attending the signing ceremony was U.S. ambassador to China
Gary Locke. The new joint venture company, Alcoa CPI (China) Aluminum
Investment Co. Ltd., will be majority owned and managed by Alcoa and
based in Shanghai.

Today’s announcement is the outcome of a Letter
of Intent
between the two companies signed in September 2011 to form
the joint venture company.

“This is a significant milestone in the partnership we have forged with
CPI leveraging our combined strengths to capture opportunities in the
high-growth Chinese aluminum market,” said Alcoa Chairman and CEO Klaus
Kleinfeld. “This alliance will enhance Alcoa’s competitiveness and
further position our businesses for continued profitable growth.”

“CPI is delighted to work with a global aluminum industry leader to
produce high-end fabricated aluminum products to serve the fast growing
and dynamic China market. We expect that this joint venture will enable
CPI to extend its capabilities to the fabricated marketplace to enhance
competiveness and to better serve our customers,” said CPI President Lu

The joint venture company will serve as a leading manufacturer of
high-end fabricated aluminum products for the aerospace, automotive,
commercial transportation, consumer electronics and packaging markets in

Terms of the agreement were not disclosed.

The relationship between Alcoa and CPI was formalized in January 2011,
when the two companies signed a Memorandum
of Understanding
for cooperation on projects in China and around the
world during Chinese President’s Hu Jintao’s State visit to Washington,

About Alcoa

Alcoa is the world’s leading producer of primary aluminum, fabricated
aluminum and 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 ten 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

About CPI

China Power Investment Corporation (CPI) is one of the five Gencos in
China and a comprehensive energy group integrating industries of power,
coal, aluminum, railway and port. It is the only enterprise in China
possessing assets in hydropower, thermal power, nuclear power and new
energies at the same time, and is one of the three companies in China
that are authorized to develop, build and operate nuclear power plants.
By the end of 2011, CPI had installed capacity of 76.8GW, of which
17.95GW was hydropower, which ranked first among the five Gencos. Clean
energy accounted for 30% of the total portfolio, the highest among the
five Gencos. Meanwhile, CPI had coal production capacity of 73.5 million
tons and aluminum production capacity of 2.6 million tons. More
information can be found at