Alcoa Prepares to Move Forward with Next Phase of Massena Modernization

Sat Mar 30, 2013 10:55am EDT

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Conditionally authorizes $52 million dependent on Record of Decision from EPA
NEW YORK--(Business Wire)--
Alcoa today announced that it is prepared to proceed with the next phase of the
modernization of its Massena, NY operations, once the company receives a Record
of Decision (ROD) on the Grasse River that is in line with the Proposed Remedial
Action plan issued by the Environmental Protection Agency last fall. The next
phase includes spending $52 million for work that will begin in June 2013,
including $10 million toward economic development in the North Country. 

"Thanks to the leadership of U.S. Sen. Charles Schumer, Gov. Andrew Cuomo, the
New York Power Authority and many other government officials, employees, union
leaders and community members, we are ready to take this important step toward
modernizing our Massena facilities," said Alcoa Executive Vice President and
President of Global Primary Products Chris Ayers. "Modernizing Massena will help
us move farther down the aluminum cost curve and secure Alcoa`s place as a vital
part of the North Country`s economy for decades to come." 

Once a ROD is received, the next phase of the modernization will include site
work and support projects in preparation for the construction of a new potline
at the location`s Massena East plant. The company expects to spend $52 million
on this modernization phase through 2015, including the $10 million commitment
toward economic development. 

Under the terms of the contract, NYPA will supply power to the operations in
Massena for a term of 30 years following the expiration of Alcoa`s current power
contract in 2013, with the option to extend the contract for an additional 10
years under certain economic conditions. In turn, Alcoa must invest a minimum of
$600 million to modernize its operations. 

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," "expects," "intends,"
"plans," "scheduled," "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. 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; (b)
deterioration in global economic and financial market conditions generally, or
unfavorable changes in the markets served by Alcoa; (c) Alcoa`s inability to
achieve the level of revenue growth, cash generation, cost savings, improvement
in profitability and margins, fiscal discipline, or strengthening of
competitiveness and operations (including moving its refining and smelting
businesses down on the industry cost curves and increasing revenues in its
Global Rolled Products and Engineered Products and Solutions segments),
anticipated from its restructuring programs, productivity improvement, cash
sustainability, and other initiatives; (d) the outcome of contingencies,
including legal proceedings, government investigations, and environmental
remediation; (e) failure to maintain investment grade credit ratings which could
limit Alcoa`s ability to obtain future financing, increase its borrowing costs,
adversely affect the market price of its existing securities, or otherwise
impair its business, financial condition and results of operations; (f) failure
to receive from the U.S. Environmental Protection Agency a Record of Decision on
the Grasse River that is consistent with the Preliminary Remedial Action Plan
dated October 1, 2012; (g) changes in project economics, regulatory
requirements, capital expenditure restrictions, an inability to obtain
financing, unexpected events beyond Alcoa`s control, or other reasons which
would preclude or make unfeasible the company`s authorization of full
implementation of the Massena East modernization plan; and (h) the other risk
factors summarized 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 obligation to update publicly any forward-looking statements, whether in
response to new information, future events or otherwise, except as required by
applicable law. 

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.

Alcoa
Nick Ashooh, 212-836-2690 



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