Alcoa Wins Navy Contract to Apply Advanced Manufacturing Techniques to Shipbuilding

March 7, 2012

NEW YORK–Alcoa (NYSE:AA) announced today that the U.S. Navy has awarded a $2.1
million contract to Alcoa to develop advanced welding techniques
designed to reduce manufacturing costs on aluminum-intensive ships.

Under the program, developed through a collaboration by Alcoa’s
Government Affairs team and researchers at the Alcoa Technical Center in
New Kensington, PA, Alcoa will adapt high-deposition gas metal arc
welding technology to marine structures, enabling the Navy to reduce the
cost of shipbuilding. Total projected savings for the Navy could be as
much as $200 million under current shipbuilding plans.

“With tightening government budgets and growing demands, this kind of
project such plays an important role in helping our service men and
women meet their mission requirements,” said Daniel Cruise, Alcoa Vice
President, Public and Government Affairs.

“Alcoa’s Government Affairs, Alcoa Technical Center and Alcoa Defense
teams are working together to make sure key leaders in government
understand Alcoa’s advantage in research and our manufacturing
expertise,” continued Cruise.

High-deposition gas metal arc welding is a semi-automated welding
process that reduces weld passes, thus reducing labor costs and
improving weld quality. The process will be applied to the Navy’s
Littoral Combat Ship (LCS). It could also be transferred to the Navy’s
Joint High Speed Vessel (JHSV) and other aluminum-intensive ships.

“Alcoa’s materials knowledge and technical expertise provide a critical
advantage to the Navy, allowing ship builders to streamline
manufacturing and build a better ship at a lower cost,” said Dr. Ray
Kilmer, Alcoa Executive Vice President and Chief Technology Officer.

In the past 12 months, Alcoa has received $8 million in new research and
development contracts to help the nation’s military become lighter,
faster, stronger and more efficient.

“We see a growing opportunity in all the services to use Alcoa’s
technical expertise to help the United States stay on the cutting edge
of military science through advanced materials, designs and
manufacturing techniques,” Kilmer said.

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