Printer Friendly Version
In addition to www.alcoa.com, Alcoa is an active participant in and uses social media to communicate information about the company. Facebook, Twitter, YouTube and LinkedIn are powerful tools that allow us to connect with our customers, investors, potential employees and fans.
Alcoa on Facebook
Alcoa on LinkedIn
Alcoa on Twitter
AlcoaTV on Youtube
December 16, 2002
Major Support for Development in the North Shore; ALCOA to Invest $1 Billion -- Can -- to Expand and Upgrade Its Baie-Comeau Aluminum Smelter
BAIE-COMEAU--(BUSINESS WIRE)--Dec. 16, 2002--Alcoa (NYSE:AA)
- Alcoa will be investing $1 billion (Can) over eight years to
make its Baie-Comeau plant a world-class smelter.
- The Quebec government is showing its support for the project
by providing financial support and a guarantee of additional
- Alcoa and the Quebec government are negotiating terms to
expand Alcoa's aluminum plant in Deschambault.
This morning, Quebec Premier Bernard Landry and Alcoa chairman and
CEO, Alain Belda, signed a memorandum of understanding for the
modernization of Alcoa's aluminum smelter in Baie-Comeau.
This major investment will ensure the competitiveness of Alcoa's
facilities, which are of strategic importance for the North Shore, and
the long-term maintenance of the majority of the existing jobs at the
Baie-Comeau smelter. Construction and renovation work on the project
will entail investments of $1 billion (Can) and the creation of 5 850
direct and indirect jobs over a period of 8 years. Work will begin by
the end of December 2003, and the new facilities should be operational
Mr. Landry said, "In supporting Alcoa's smelter in Baie-Comeau,
the government of Quebec is ensuring the future of one of the most
important engines of Quebec's economy. This new agreement, combined
with the agreement for expanding the Alouette aluminum plant,
announced last spring, means the region will see a total investment of
$3.0 billion (Can) over the next years. These investments will provide
jobs to more than 16 500 persons. We have not seen investments of this
size in the North Shore region since the completion of the Manic
Mr. Belda stated that he is very pleased with the new agreement,
which he sees as holding exceptional promise for the future. He said,
"Beyond its content, this Memorandum of Understanding will create a
strong partnership between Quebec and Alcoa. It points to an equally
strong future by playing an integral role in our international
development strategies. I would also like to thank the people of
Baie-Comeau and the North Shore for their support of this project."
The project is eligible for the ten-year tax break that is
available for major projects. It is also eligible for financial
assistance under the FAIRE program, from which it will receive a $170
million (Can) interest-free loan.
Under existing regulations, Hydro-Quebec will provide 175 Mega
Watts of power, required to expand facilities at the industrial power
rate, commonly called the "L" rate. "Hydro-Quebec is an important
partner in the economic development of Quebec. We are pleased to be
associated with Alcoa within the framework of a win-win agreement
which will allow us to supply this customer with hydro power at a
competitive rate, but also beneficial to us," declared president of
Hydro-Quebec, M. Andre Caille. The government has also agreed to
renew, for an additional 25 years beginning in 2011, the water rights
for the McCormick hydro-electric plant, which provides part of the
Baie-Comeau smelter's energy supply.
For its part, Alcoa has agreed to employ a minimum of 1,476
workers at the Baie-Comeau smelter. The company will be subject to
severe penalties if it does not keep this commitment.
Capacity Increase and Improved Environmental Protection
Through this modernization project, Alcoa will replace its current
Soderberg production technology with a modern pre-bake technology,
which will significantly improve the smelter's environmental
performance. Alcoa will also maximize operations in its two units that
are already using pre-bake technology. As a result of this work,
annual production capacity will increase from 437,000 metric tons to
547,000 metric tons. This investment will eliminate the majority of
plant PAH emissions and significantly reduce Greenhouse gas emissions.
Expansion of Alcoa's Deschambault aluminum plant
Mr. Landry and Mr. Belda also announced that negotiations for
expanding Alcoa's aluminum plant in Deschambault continue.
Alcoa is the world's leading producer of primary aluminum,
fabricated aluminum and alumina, 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 vinyl
siding, closures, precision castings, and electrical distribution
systems for cars and trucks. The company has 129,000 employees in 38
countries. For more information go to www.alcoa.com