August 15, 2012
Alcoa to Sell Rockdale, TX Site to Lower Colorado River Authority
NEW YORK--Alcoa (NYSE AA) announced today that it has reached an agreement to sell assets associated with Alcoa’s Rockdale, Texas site to the Lower Colorado River Authority (LCRA). Terms of the deal were not disclosed.
The agreement includes approximately 34,000 acres of property, all surface and groundwater rights, certain common plant and equipment assets, and Alcoa’s power contracts with Luminant.
Alcoa will retain ownership of its smelter and aluminum powder operations.
Subject to necessary approvals, consents and due diligence, the transaction is expected to close by early next year, but can be extended if required to complete due diligence.
Alcoa temporarily curtailed smelting operations at Rockdale in 2008, and permanently closed two of six lines in January, 2012. The site currently employs about 70 people mainly associated with the aluminum powder operations.
Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum and alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets over the past 120 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa’s operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for ten consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 61,000 people in 31 countries across the world. More information can be found at www.alcoa.com.
This release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “anticipate,” “expect,” “plan,” “should,” “will,” or other words of similar meaning. All statements that reflect Alcoa’s expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements. Forward-looking statements are subject to a number of known and unknown risks, uncertainties, and other factors and are not guarantees of future performance. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: (a) material adverse changes in aluminum industry conditions, including global supply and demand conditions and fluctuations in London Metal Exchange-based prices for primary aluminum, alumina, and other products; (b) deterioration in global economic and financial market conditions generally; (c) unfavorable changes in the markets served by Alcoa; (d) Alcoa’s inability to complete or to realize expected benefits from its divestiture of assets as planned and by targeted completion dates, including the assets associated with the Rockdale, Texas site, whether due to an inability to obtain necessary consents or approvals or to complete due diligence reviews satisfactorily, or due to unforeseen events or other reasons; and (e) the other risk factors summarized in Alcoa’s Form 10-K for the year ended December 31, 2011 and other reports filed with the Securities and Exchange Commission. Alcoa disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law.