Alcoa to Close or Curtail 164,000 Metric Tons of Smelting Capacity

August 14, 2013

Part of 460,000 metric ton capacity review announced in May

Alcoa (NYSE: AA) today announced that it will close or curtail 164,000
metric tons (mt) of smelting capacity in the United States and Brazil as
part of its smelting capacity review that was announced in May.

One potline representing 40,000 metric tons at the Massena East plant in
New York will be permanently closed. In addition, the Company has
started to temporarily curtail 124,000 metric tons at its smelters in
Brazil. The closures and curtailments will be complete by the end of

“We committed in May to review our global smelting capacity for possible
curtailment to maintain the Company’s competitiveness,” said Bob Wilt,
president of Alcoa’s Global Primary Products. “Aluminum prices,
including premiums, have fallen to four-year lows and we continue to
operate in an uncertain, volatile market.”

Wilt added that the Company will work with stakeholders in affected
communities to minimize the impact of the closures and curtailments.

To date, Alcoa has announced closures or curtailments representing
269,000 metric tons of the 460,000 metric tons placed under review in
May. This includes the permanent closure of 105,000 metric tons of
capacity announced earlier at Alcoa’s Baie-Comeau smelter in Canada. In
addition, the Company permanently closed its Fusina, Italy smelter
representing 44,000 metric tons that was not part of the May review.

Once the Massena and Brazil closures and curtailments are complete,
Alcoa will have 16 percent, or 646,800 metric tons of smelting capacity

Alcoa’s review of its primary metals operations is consistent with the
Company’s 2015 goal of lowering its position on the world aluminum
production cost curve by 10 percentage points and the alumina cost curve
by 7 percentage points.

Total restructuring-related charges for third quarter 2013 associated
with the above actions are expected to be between $5 and $10 million
after-tax, or $0.01 per share, of which approximately 50 percent is

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
“estimates,” “expects,” “goal,” “plans,” “should,” “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 global demand growth for
aluminum, end market conditions, supply/demand balances, targeted
financial results or operating performance, and statements about Alcoa’s
strategies, 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 actual results to differ
materially from those expressed or implied in the forward-looking
statements include: (a) material adverse changes in aluminum industry
conditions, including global supply and demand conditions and
fluctuations in London Metal Exchange-based prices for primary aluminum,
alumina, and other products, and fluctuations in indexed-based and spot
prices for alumina; (b) deterioration in global economic and financial
market conditions generally; (c) unfavorable changes in the markets
served by Alcoa; (d) Alcoa’s inability to successfully realize goals
established in each of its four business segments, at the levels or by
the dates targeted for such goals (including moving its alumina refining
and aluminum smelting businesses down on the industry cost curves and
increasing revenues in its Global Rolled Products and Engineered
Products and Solutions segments); (e) political, economic, and
regulatory risks in the countries in which Alcoa operates or sells
products, including unfavorable changes in laws and governmental
policies, foreign currency exchange rates, tax rates, civil unrest, or
other events beyond Alcoa’s control; (f) changes in preliminary
accounting estimates due to the significant judgments and assumptions
required; and (g) the other risk factors summarized in Alcoa’s Form 10-K
for the year ended December 31, 2012, Forms 10-Q for the quarters ended
March 31, 2013 and June 30, 2013, and other reports filed with the
Securities and Exchange Commission. Alcoa disclaims any 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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Kelly Pasterick, 212-836-2674
Media Contact
Monica Orbe, 212-836-2632