Boeing and Alcoa Form ‘Closed-Loop’ Program To Boost Recycling of Aluminum Aerospace Alloys

June 19, 2013

Program Also Lays Framework to Expand Recycling to Broader Supply Chain and All Forms of Aluminum

Boeing and Alcoa (NYSE: AA) today announced they have formed a
closed-loop program to significantly increase the recycling of internal
aluminum aerospace alloys used during the production of Boeing
airplanes. The announcement was made at the Paris Air Show at Le
Bourget, France.

The closed loop recycling program will entail inter-modal transport of
aluminum alloy scrap material, including advanced alloys, from Boeing
facilities in Auburn and Wichita as well as third-party processors in
Auburn to Alcoa’s Lafayette, Indiana facility for melting and recycling
into new aerospace materials. The program calls for recycling of 2XXX
and 7XXX-series aluminum alloys used in the production of wing and
fuselage components of Boeing airplanes. The forms will include aluminum
extrusions, sheet and plate products. At the outset, approximately 8
million pounds of aluminum is expected to be recycled annually.

The new program also lays the groundwork for expansion of the effort to
capture scrap from Boeing sub-contractors, and to be expanded to include
other aluminum scrap forms, including chips that remain after the
machining of parts.

“This program will maximize the value of aluminum scrap materials
throughout the supply chain while also reducing waste,” said Leslie
Shuman, Director of Supply Chain for Alcoa’s Aerospace, Transportation
and Industrial Rolled Products. “It also allows us to work closely with
Boeing to ensure the quality and integrity of the materials we bring
into our system for recycling.”

Alcoa has been a leader in recycling of aluminum since it helped create
the modern-day aluminum industry in 1888. Aluminum, unlike other
materials, is infinitely recyclable and doesn’t lose any of its
characteristics or durability when recycled. In fact, approximately 75
percent of all of the aluminum ever produced since 1888 is still in use
today.

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 125 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 30
countries across the world. For more information, visit www.alcoa.com
and follow @Alcoa on Twitter at twitter.com/Alcoa and follow Alcoa on
Facebook at www.facebook.com/Alcoa.

Alcoa
Investors:
Kelly Pasterick, 212-836-2674
or
Media:
Kevin G. Lowery, 412-553-1424 or Mobile: 724-422-7844
or
Monica Orbe, 212-836-2632