Alcoa Participates in the Inauguration of Estreito Hydro Power Plant in Brazil

October 25, 2012

NEW YORK–(BUSINESS WIRE)–Alcoa (NYSE:AA) joined with Brazilian business and government dignitaries, including President Dilma Rousseff, in the inauguration of the 1087-megawatt Estreito hydroelectric power plant in Brazil. The power plant was developed by the Estreito Power Consortium, comprised of Alcoa (25.49%), Tractebel Energia, Vale and Intercement. With the Estreito facility, Alcoa will be 70 percent energy self-sufficient in Brazil.

“Our investment in the Estreito power plant is an important part of our strategy for seeking competitiveness for our operations in Brazil, since energy is a fundamental input in the aluminum industry,” said Franklin L. Feder, Regional CEO of Alcoa Latin America & Caribbean. “The inauguration of Estreito is ratification of Alcoa’s commitment to Brazil and is a practical demonstration of how the company is playing its part.”

Construction of the facility began in 2007, and at the height of construction, the development generated some 36,000 direct and indirect jobs.

“The five years were full of challenges on this huge project, which in addition to supplying power for the whole of Brazil and for Alcoa’s plants for the next few decades, will stimulate regional development,” said Ricardo Sayão, Director of Energy for Alcoa Latin America & Caribbean.

The hydropower plant will supply reliable energy to Brazil’s North/Northeast power grid. Alcoa’s share of the installed power is earmarked for the company’s Alumar facility.

Estreito is Alcoa’s third power generating project in Brazil. Machadinho (1,140 MW) has been running since 2002, and Barra Grande (708 MW) began operating in 2005.

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 11 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.

About Alcoa in Brazil

Alcoa Alumínio S.A. is a subsidiary of Alcoa Inc. Alcoa has been in Latin America and the Caribbean since the late 1950s and has some 7,000 employees in the region, with operations in Brazil, Jamaica and Surinam. In Brazil the company in an integrated producer of aluminum with operations ranging from bauxite mining to production of finished products. Alcoa has six production units and three offices in the states of Maranhão, Minas Gerais, Pará, Pernambuco, Santa Catarina, São Paulo and the Federal District. The company also has shareholdings in four hydroelectric power stations: Machadinho and Barra Grande on the border of the states of Santa Catarina and Rio Grande do Sul; Serra do Facão in Goiás; and Estreito, between Maranhão and Tocantins. In 2011 Alcoa recorded revenues of US$2 billion in Brazil. In the same year the Company was considered a benchmark in social responsibility and was one of the 21 model companies in the Guia Exame de Sustentabilidade [Exame magazine’s Sustainability Guide]. Further information can be found at www.alcoa.com.br.

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