ECONOMIC IMPACT

  • In 2012, we paid US$5.6 billion in wages and benefits and spent almost US$18.1 billion for goods and services globally.
  • Alcoa and Alcoa Foundation invested more than US$40 million in community programs in 2012.

 

Making an Impact on Communities

 

Alcoa operates in many communities throughout the world. Our contributions to those communities, and to society at large, are significant and bring social and economic benefit to regions wherever we operate.

 

The contributions we make annually include:

  • Wages that we pay to 60,000 employees;
  • Payments for services and supplies to thousands of contractors and suppliers that support our local operations;
  • Dividends to our shareholders;
  • Payments for taxes to national, state, and local governments;
  • Significant charitable contributions we make both financially and in-kind through our business operations, employees, and Alcoa Foundation; and
  • Infrastructure improvements (roads, health care, and electricity), especially in developing regions of the world.

 

We consider it an honor and a privilege to be able to operate in the various local communities where we exist around the world. As a neighbor, we have an obligation to contribute positively to those communities each and every day. That accountability is what earns us the privilege to continue to operate there.

 

For many locations, such as those in Suriname and Jamaica, we represent a very significant part of the overall economic foundation for the country or region.

 

Our impact in Suriname is through Suriname Aluminum Company (Suralco). In 2012, Suralco accounted for roughly 14% of the export value of Suriname and 1% of the country’s gross domestic product—more if multiplier effects are taken into account.

 

Suralco employed 896 employees, and payroll totaled nearly US$43 million in 2012. The company also provided more than US$6.8 million in pension payments to former employees. Other economic contributions included US$46.4 million spent for around 1,280 contractors, miscellaneous supplies from local vendors, and medical specialists. The company also bought about US$175 million in oil from the State Oil Company and paid nearly US$28 million in taxes. In addition, Suralco supplied about 103 megawatts of electric capacity for the Suriname government—roughly 85% of the electricity needs of the country’s capital city of Paramaribo.

 

Suralco also provided US$452,000 in scholarships for children of its employees, and Alcoa Foundation provided US$257,000 in grants for improvement projects in education, the environment, and health services. These grants are focused on sustainable development in the communities and improvement of farming methods. One grant specifically funds a business incubator for entrepreneurs in the cassava sector in the District of Para.

 

In 2012, the Jamalco operations in Jamaica, of which Alcoa owns 55%, employed 891 full-time equivalent employees, paid US$29.8 million in salary and benefits, and spent US$47.7 million on local contractor services and supplies.

 

Jamalco and Alcoa Foundation invested US$250,000 in programs to improve the quality of life in Jamaica in 2012, bringing total investment in the nation between 2004 and 2012 to US$2.15 million. The funding has been used to create alternative economic opportunities for community residents, to improve health care in Jamalco's operating areas, fund vocational training for residents and local farmers, continue development of local athletes, and provide educational assistance to needy children.

 

2012 Value Added by Region
US dollars
  Asia Australia Europe North
America
South
America
Total
Sales 0.6 billion 3.2 billion 6.0 billion 12.6 billion 1.3 billion 23.7 billion
Wages & Benefits 0.1 billion 0.9 billion 1.0 billion 3.3 billion 0.3 billion 5.6 billion
Procurement Spend 0.4 billion 3.2 billion 4.8 billion 7.5 billion 2.2 billion 18.1 billion
Alcoa/Alcoa Foundation Community Investments 1.0 million 4.6 million 5.4 million 24.7 million 4.7 million 40.4 million

 

We understand that business decisions we make have impact in the communities where we operate. In 2012, for example, we closed or curtailed approximately 531,000 metric tons, or 12%, of our global smelting capacity, to lower our position on the global aluminum cost curve and improve our competitiveness.

 

The affected communities were in Alcoa, Tennessee (idle since 2009), and Rockdale, Texas (idle since 2008), in the United States; La Coruña and Avilés, Spain; and Portovesme, Italy. We reached out to each location’s major stakeholders, provided information to affected employees, and opened up the relevant information and consultation processes with unions, government agencies, and more. For those facilities that closed, we ensured open and broad dialogue to determine the most appropriate future use for each. Some of the curtailed capacity in Spain was restarted in early 2013.

 

We will be permanently closing our smelter in Fusina, Italy, in 2013. We performed a highest- and best-use study and are working with regional stakeholders to evaluate how that portion of the site could support new employment.