Alcoa to Close Portovesme Smelter in Italy

August 25, 2014

Alcoa (NYSE:AA) today announced that it intends to permanently close its
Portovesme (Carbonia-Iglesias, Italy) primary aluminum smelter, which
has been curtailed since November 2012. The closure will reduce Alcoa’s
global smelting capacity by 150,000 metric tons to 3.6 million metric
tons per year.

The Portovesme smelter was curtailed in 2012 because it was one of the
highest cost smelters in the Alcoa system and had limited prospects for
becoming competitive.

“The fundamental reasons that made the Portovesme smelter uncompetitive
unfortunately have not changed,” said Bob Wilt, President, Alcoa Global
Primary Products. “We will continue to meet the commitments made to our
employees and our stakeholders, acting in good faith as we have always

As committed to the government and unions, Alcoa has provided financial
social support, along with outplacement and re-employment services for

The closure is aligned with Alcoa’s strategy to create a globally
competitive commodity business and lower its position on the world
aluminum production cost curve to the 38th percentile by 2016.

Total restructuring-related charges for third quarter 2014 as a result
of the closure are expected to be between $170 million and $180 million
after-tax, or between $0.14 and $0.15 per share, of which approximately
60 percent is non-cash.

About Alcoa

A global leader in lightweight metals technology, engineering and
manufacturing, Alcoa innovates multi-material solutions that advance our
world. Our technologies enhance transportation, from automotive and
commercial transport to air and space travel, and improve industrial and
consumer electronics products. We enable smart buildings, sustainable
food and beverage packaging, high-performance defense vehicles across
air, land and sea, deeper oil and gas drilling and more efficient power
generation. We pioneered the aluminum industry over 125 years ago, and
today, our 60,000 people in 30 countries deliver value-add products made
of titanium, nickel and aluminum, and produce best-in-class bauxite,
alumina and primary aluminum products. For more information, visit,
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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
“anticipates,” “estimates,” “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, 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
to differ materially from those expressed or implied in the
forward-looking statements include: (a) the inability to complete the
closure of the Portovesme smelter and remediation activities as planned
or within the time period anticipated, whether due to changes in laws,
regulations, governmental policies, or other factors; (b) changes in
preliminary accounting estimates due to the significant judgments and
assumptions required; (c) the inability to lower the company’s position
on the world aluminum production cost curve and alumina refining cost
curve as planned or within the time period anticipated, whether due to
competitive factors, cost increases, delays in completing restructuring
actions, or other reasons; and (d) the other risk factors discussed in
Alcoa’s Form 10-K for the year ended December 31, 2013, 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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