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September 30, 2006

Alcoa Adds 170 Jobs to Support Re-Start of Second Potline at Pacific Northwest Smelter

NEW YORK--(BUSINESS WIRE)--Alcoa (NYSE:AA) announced today that it plans to operate a second potline at its Intalco Works aluminum smelter in Ferndale, Wash., adding 170 high-wage jobs to the current workforce of 450, bringing total employment to more than 600.

The re-start of a second potline during the first half of 2007 will increase production by 7,500 metric tons a month, bringing total production at the plant to 180,000 metric tons per year, which is two thirds of the plant’s operating capacity. The plant has not operated two potlines since April 2003.

“Intalco Works is one of the most efficient converting plants in the world and can be a competitive facility when given a reasonable power contract,” said Alan Cransberg, President, Global Manufacturing, Alcoa Primary Products. “This re-start is possible because of favorable market conditions combined with previously announced benefits from the Bonneville Power Administration and the State of Washington, as well as a new labor contract. These components help us offset the cost of purchasing power on the open market, as stipulated in our BPA contract for the next five years.”

Alcoa views the short-term BPA benefits as a bridge until 2011, when the company hopes to be able to once again purchase cost-based BPA power like other key industries in the Pacific Northwest.

“This is tremendous news for our employees and the coalition of government officials and community leaders who have supported Alcoa Intalco Works through the years,” said Mike Rousseau, plant manager, at the plant’s 40th anniversary open house celebration, where the announcement was made. “This decision will bring substantial additional economic impact to our community and region.”

Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap(R) foils and plastic wraps, Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 129,000 employees in 44 countries and has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland. More information can be found at www.alcoa.com