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June 24, 2009

Alcoa Russia’s Samara Plant Launches New Coating Line for Aluminum Sheet

SAMARA, Russia--Alcoa Russia’s Samara Plant today commissioned a new state-of-the-art coating line for production of high-quality coated sheet used in the packaging market for aluminum soft drink and beer cans as well as serving the building and construction markets. The new coating line is the only one of its kind in Russia and raises Alcoa to the worldwide leadership position in all aspects of can material production capability.

The Samara Plant is the only can stock producer in Russia, and will serve can manufacturers in Russia as well as customers across Europe. The creation of the new production line is an example of world-class manufacturing being installed under Russian leadership and significantly raises the capabilities of the manufacturing operation.

“This is a major milestone in the long history of our Samara plant…a milestone that will ultimately generate hundreds of millions of dollars for the country over its life and create enormous value for Alcoa, our customers, employees and the region as a whole,” said Helmut Wieser, Executive Vice President of Alcoa and Group President for Flat Rolled Products.

“Until now, our Samara plant has manufactured only aluminum can stock for can bodies,” said Wieser. “With the commissioning of this new state-of-the-art equipment, the Samara plant will be able to fully meet the demand of the Russian market in all three types of can stock required for production of aluminum cans: can body stock, end and tab stock. This allows customers the opportunity and efficiencies of obtaining their needs locally as well as all in one place,” said Wieser.

“In addition to benefiting our overall business, our customers in Russia will benefit from local supply and likely will invest more here in Russia. Our investment is a win-win-win for the country, the Samara region, and our customers. This new production line adds to the more than 6,000 people we already employ here, and will ultimately result in many more indirect jobs,” he added. “In addition, the plant will also now have the capability to produce painted sheet used in architectural structures, expanding this plant’s capabilities even further.”

Production capacity of the line is approximately 60,000 tons per year. The first products were shipped to customers beginning this month.

The commissioning of the line, which was attended by Samara Region Governor Vladimir Artyakov and the U.S. Ambassador to Russia, John Ross Byerle, completes an approximately $750 million investment program by Alcoa into its Russian operations, raising their capabilities to world-class status.

The equipment was developed and supplied by BWG Company and is the latest available technology of its kind. BWG is a worldwide leading producer of coating machinery for ferrous and non-ferrous metals.

Production Capabilities

The line allows processing of aluminum coils in different alloys with the thickness of 0.15 through 0.8 mm. The width of the sheet is from 1050 through 2050 mm. The processing rate is up to 250 m per minute. The line is fully computerized and is fitted out with all necessary equipment providing safe operational conditions both for operators and for the environment. So, a combined extract-and-input ventilation system located in a coating cabin completely changes air medium 60 times per hour.

Andrey Donets, President Alcoa Russia said, “By launching a new coating line, we think, first of all, about our future, the future of Alcoa in Russia, and the future of our customers and consumers of aluminum products. It is consistent with Alcoa’s global development strategy that is grounded in our confidence in a positive outlook to improve sales of aluminum, which is the most sustainable, light and multifunctional material now used almost in all industries.

“Our ‘winged’ metal lends wings not only to aircraft for which Samara Metallurgical Plant produces many parts. Today, by launching our state-of-the-art coating line, we definitely lighten life to Russian can producers who will now get high-quality can stock produced in Russia which do not concede but even succeed their foreign counterparts,” said Donets.

About Alcoa

Alcoa (NYSE:AA) is the world’s leader in the production and management of primary aluminum, fabricated aluminum, and alumina combined through its active and growing participation 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, and building systems. The company has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland, and has been a member of the Dow Jones Sustainability Index for seven consecutive years. More information can be found at www.alcoa.com