Alcoa Breaks Ground on $275 Million Auto Expansion in Tennessee

August 29, 2013

Will Create 200 Permanent and 400 Construction Jobs in Tennessee

Tennessee Groundbreaking Marks Alcoa’s Second US Expansion to Meet Growing Demand for Light, Durable and Recyclable Aluminum Sheet for Auto Production

Tennessee Governor Bill Haslam, U.S. Senator Lamar Alexander,
Congressman John Duncan and other local and state officials joined Alcoa
(NYSE: AA) Chairman and CEO Klaus Kleinfeld today to break ground on a
$275 million expansion of Alcoa’s Tennessee Operations to meet growing
aluminum demand for auto production. Aluminum, already the number two
material used to build cars, is expected to nearly double by 2025.

The expansion will create an additional 200 full time jobs in Tennessee
once completed by mid-2015. In addition, during construction, an
incremental 400 construction jobs will be created at the plant. The
previously announced expansion will convert some of the plant’s can
sheet capacity to high-strength automotive aluminum capacity, as well as
install incremental automotive capacity, making it a key supplier to
both the packaging and automotive markets.

The Tennessee expansion is the second major automotive expansion by
Alcoa in North America to meet car makers’ demand; a $300 million
expansion of Alcoa’s Davenport, Iowa plant has already begun
commissioning and is set to be completed by the end of 2013. Much of the
volume for the automotive expansions is secured under long-term supply
agreements.

“This investment will help auto manufacturers make safe, fuel-efficient
vehicles that consumers want,” said Alcoa Chairman and CEO Klaus
Kleinfeld. “At the same time, we’re bringing jobs to Tennessee and
growing our value-added businesses. It’s a great day all around.”

As part of the groundbreaking and the 100th anniversary of
Tennessee Operations, Alcoa announced a $50,000 Alcoa Foundation grant
to The East Tennessee Historical Society to create an exhibit at the
Museum of East Tennessee History on the past, present and future of
manufacturing, “100 Years of Manufacturing in East Tennessee: and a Look
Ahead at the Next 100 Years”. The exhibit will raise awareness of the
evolution of manufacturing, with an emphasis on STEM (science,
technology, engineering and math) to promote career options in
manufacturing to students and teachers across East Tennessee and help
fill the manufacturing skills gap.

“Since its founding, Alcoa has been committed to community partnerships
and that is why I am pleased to announce this grant for the East
Tennessee Historical Society, which will support the continued
advancement of Tennessee’s manufacturing base,” said Kleinfeld.

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
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