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December 5, 2007

Alcoa Dedicates New Production Facility

NEWBURGH, Ind.--Alcoa (NYSE:AA) Warrick Operations today dedicated a new Lithographic Cleaning Line, celebrating the creation of 50 new jobs at the plant, an additional $47 Million to the local tax base, and a diversification of products creating a bright future for the facility.

“This significant investment reinforces the strong foundation at Warrick Operations allowing us to diversify our product mix and fully utilize our existing assets,” said Ann Whitty, Vice President and General Manager for Alcoa’s Rigid Packaging Division. “Alcoa’s continued investment in Warrick Operations is creating a strong future for the company, our employees, our customers, and this community.”

Installation of the Lithographic Cleaning Line (Litho Line) started early in 2007 with equipment and installation costs totaling $47 Million. The line is designed specifically to clean, level, and trim lithographic sheet that is used in the high end printing market for products including magazines, periodicals, brochures, and newspaper inserts. Alcoa customers for litho sheet include Kodak, Fuji, AGFA, Anocoil, and others. The newly installed line has begun to supply customers with coils.

Beth Schmitt, Director of Lithographic Sheet Sales for Alcoa’s Rigid Packaging Division, added, “The lithographic sheet market continues to grow with the product becoming a major strategic component of Alcoa’s global growth plan. Litho production at Warrick leverages the existing assets and employee knowledge base to meet the high quality requirements of the printing industry.”

“With more than 4000 employees in Indiana, Alcoa is an important part of Indiana’s economy,” said Dorrie Lobue, Regional Director for the Indiana Economic Development Corporation. “We are pleased that Alcoa continues to invest in Indiana as a partner in our economic comeback.”

Speaking about the investment, Warrick County Commission President Don Williams said, “With today’s dedication, Alcoa has once again demonstrated their commitment to Warrick County and to the entire region. I’m honored to be a part of the future of this plant.”

“This investment is a testament to the continued improvement that Warrick employees make every day that they come to work. In 2007, employees have submitted more than 6000 suggestions and participated in countless improvement events designed to enhance this facility,” said Whitty. “These efforts earn the support of Alcoa’s leadership and create the opportunities for investments like this.”

Alcoa is investing hundreds of millions of dollars in the future of Warrick Operations. Other announced investments include:
  • $440 Million to install scrubbers at the Warrick Power Plant (includes $40 Million from Vectren for their portion of Unit 4)
  • $55 Million to develop the Friendsville Mine to provide fuel for the Power Plant
  • $7.2 Million to install a rotary dross furnace to increase the efficiency of Warrick’s ingot plant

About Alcoa

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 including flat-rolled products, hard alloy extrusions, and forgings, Alcoa also markets Alcoa® wheels, fastening systems, precision and investment castings, structures and building systems. The company has 116,000 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

About Warrick Operations

Alcoa Warrick Operations is an integrated facility housing a 309,000 metric ton per year (mtpy) primary aluminum smelter and rigid packaging operations that produce aluminum sheet for beverage and food can ends, tabs, and other flat-rolled aluminum products such as lithographic printing sheet. Alcoa’s Warrick Power Plant is a 742 megawatt (MW) coal-fired power plant that provides the power necessary to operate the plant. Warrick Operations is one of the largest aluminum smelting and fabricating facilities in the world with more than 120 acres under roof and 14,000 total acres in the community. Alcoa generates $1 Million a day into the local economy and employs more than 2100 people. Learn more at