United Kingdom: a helping hand when it matters most
Katie Lewis-Carthy and John Znajda are part of a large group of volunteers from Alcoa's Kitts Green, UK, rolling mill who tutor children in reading skills at nearby Heathlands School.
Alliances
A Big Step in China
In 2001, Alcoa completed agreements for a strategic alliance with Aluminum Corporation of China Ltd. (Chalco), marking the beginning of a long-term strategic partnership. The companies are forming a 50/50 joint venture at Chalco’s facility at Pingguo, one of the most efficient alumina and aluminum plants in China. Alcoa will gain a strong position in China’s aluminum market, the fastest growing in the world, while Chalco will benefit from Alcoa’s management skills, operational and technical expertise, and best practices. Alcoa’s participation in the primary sector will also support Alcoa’s further growth in fabricated products in China.
Venture plans include a significant increase in refining and smelting capacities at Pingguo, doubling the 450,000-mtpy alumina refining capacity by 2003 and expanding the 135,000-mtpy smelter to 355,000 mtpy by 2006. Alcoa is the strategic investor in Chalco’s global offering and listing on the New York Stock Exchange and The Stock Exchange of Hong Kong. The alliance is expected to lead to additional joint ventures in China.
New Business for Howmet
Alcoa’s Howmet Castings business strengthened its ties with two major customers. In 2001, Howmet and Siemens AG began a multiyear, several hundred million dollar agreement for the supply of Howmet turbine airfoil castings. In January 2002, Boeing awarded Howmet Castings $8 million in new contracts for its F-22 aircraft.
Hydropower in Brazil
Alcoa Aluminio is engaged in several hydropower projects with other Brazilian companies that will increase its energy self-sufficiency and cost-stability while also meeting Alcoa and Brazilian standards for socially and environmentally sound development.
 In 2002, Aluminio began receiving its own energy from the Machadinho plant, in which Aluminio has a 27.23% stake. The plant has a total installed capacity of 1,140 megawatts (MW) and is expected to supply 55% of the energy requirements of Aluminio’s Poços de Caldas smelter.
A consortium including Aluminio won an auction for construction of the Santa Isabel plant. The facility will have a total installed capacity of 1,087 MW, and will supply 30% of the Alumar smelter’s needs. Aluminio owns a 20% share, corresponding to 106.5 MW of firm power. Start-up is expected in 2008.
Aluminio also participates in the Barra Grande and Serra do Facão hydropower projects.
Barra Grande construction has begun and is expected to be completed in 2005, with total installed capacity of 690 MW. The facility will provide 45% of the energy for Poços de Caldas and a smaller percentage of Alumar’s needs. Aluminio has a 35.30% stake.
Construction of the Serra do Facão facility, in which Aluminio has a 39.46% stake, will begin in 2002 and is scheduled for completion by 2005. It will have total installed capacity of 210 MW, and supply 26% of Alumar’s needs.
Closures for India and Nepal
Alcoa Closure Systems International (CSI) and Nilkamal Plastics Group of Mumbai, India, the leading supplier of plastic beverage crates to bottlers in Asia, formed a joint venture to produce plastic closures for beverage markets in India and Nepal. The venture was granted foreign investment approval from the Nepal government to build a plant in Hetauda, a border town between Nepal and India.
New Metals Distributor
Alcoa and BHP Billiton formed a North American metals-distribution joint venture, with each of the partners owning 50%. Named Integris Metals, it is a Minneapolis-based, independently managed company with projected annual revenues of more than $2 billion. The venture combines Reynolds Aluminum Supply Co. with BHP Billiton’s Vincent Metal Goods in the U.S. and Atlas Ideal Metals in Canada.
Bigger Stake in Korea
Korea Packaging System was renamed Alcoa CSI Korea, reflecting Alcoa’s purchase of an additional 26% interest in the company from Maro Corp. Alcoa now holds 51% of this leading producer of plastic beverage closures.
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Christine Gibson, Richmond, Virginia, USA
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