Alcoa to Close Fusina Smelter in Italy

June 28, 2013

Alcoa (NYSE:AA) announced today that it intends to permanently close its
Fusina (Venice, Italy) primary aluminum smelter, which has been
curtailed since June 2010. The planned closure will reduce Alcoa’s
global smelting capacity of 4.2 million metric tons per year by 44,000
metric tons.

The intended closure of Fusina’s 44,000 metric tons is in addition to
the 460,000 metric tons of operating smelting capacity that Alcoa
previously announced was under review.

“The underlying conditions that led Alcoa to curtail the Fusina smelter
in 2010 have not fundamentally changed,” said Alcoa Global Primary
Products President Bob Wilt. “Global aluminum prices remain weak and we
must take action to maintain Alcoa’s competitiveness.”

Alcoa will work with affected communities to explore ways to redevelop
the closed smelter and will consult with local unions to put appropriate
social support in place for the employees impacted by the closure. Alcoa
currently employs 14 people at the curtailed smelter.

The Alcoa Fusina rolling mill operates separately from the smelter and
is not affected by this announcement.

Total restructuring-related charges for second quarter 2013 as a result
of the closure are expected to be between $30 million and $35 million
after-tax, or about $0.03 per share, of which approximately 50 percent
is non-cash.

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,
follow @Alcoa on Twitter at
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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 “expects,” “intends,” “plans,” “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 aluminum industry conditions or
other trend projections, anticipated financial results or operating
performance, and statements about Alcoa’s strategies, objectives, goals,
targets, outlook, and business and financial prospects. Forward-looking
statements are subject to a number of known and unknown risks,
uncertainties and other factors and are not guarantees of future
performance. Important factors that could cause Alcoa’s actual results,
performance or outcomes to differ materially from those expressed in or
implied by the forward-looking statements include: (a) the inability to
complete the permanent closure of the Fusina primary aluminum smelter as
planned, whether due to legal or regulatory requirements, objections
from various stakeholders, or other unforeseen factors; (b) changes in
preliminary accounting estimates due to the significant judgments and
assumptions required; and (c) the other risk factors discussed in
Alcoa’s Form 10-K for the year ended December 31, 2012 and other reports
filed with the Securities and Exchange Commission. Alcoa disclaims any
intention or obligation to update publicly any forward-looking
statements, whether in response to new information, future events or
otherwise, except as required by applicable law.

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Media Contact
Monica Orbe, + 1 212-836-2632