AFL Automotive to Restructure Mexican Operations.Business Editors PITTSBURGH--(BUSINESS WIRE)--May 13, 2003 Alcoa today announced that its Alcoa Fujikura Ltd. (AFL AFL: see American Federation of Labor and Congress of Industrial Organizations. ) Automotive operations will restructure its operations in Ciudad Acuna and Torreon, Coahuila, Mexico in order to maintain competitiveness within the overall North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. light and heavy vehicle marketplace. As a consequence it is necessary to permanently reduce approximately 1,700 positions in Ciudad Acuna and 2,550 positions in Torreon. The reorganization is expected to be completed by July 31, 2003 and is part of Alcoa's previously announced (January 8, 2003) fourth quarter 2002 restructuring program. The AFL Automotive manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in Piedras Negras Piedras Negras, ancient city, Guatemala Piedras Negras (pyā`thräs nā`gräs) [Span.,=black stones], ruined city of the Classic era of the Maya, NW Petén, Guatemala, in the Usumacinta valley. will also be affected by a reorganization. However, due to the anticipated startup of a new production line there, affected associates in Piedras Negras will continue to work by attending special training programs. AFL Automotive's Ciudad Acuna, Torreon and Piedras Negras operations, which currently employ approximately 24,000 associates (approximately 11,000 in Ciudad Acuna; 8,400 in Torreon; 4,600 in Piedras Negras), produce electrical distribution systems and other products for the North American light and heavy vehicle markets. Including three other locations not directly affected by the reorganization, AFL Automotive employs approximately 30,000 people in Mexico. Jose Alvarado, AFL Automotive - Mexico Vice-President, said, "This difficult decision is the result of overall market conditions. The North American light vehicle market is extremely competitive and we need to make these tough decisions in order to be effective today and beyond. AFL Automotive recognizes the impact that this workforce reduction will have on the lives of its employees, their families and the community at large. Severance, in addition to a combination of outplacement out·place·ment n. The process of facilitating a terminated employee's search for a new job by provision of professional services, such as counseling, paid for by the former employer. and transition support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services , will be made available to all affected employees. 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 as a single solution to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap(R) aluminum foil Noun 1. aluminum foil - foil made of aluminum aluminium foil, tin foil foil - a piece of thin and flexible sheet metal; "the photographic film was wrapped in foil" , Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are vinyl siding Wikipedia is not the place for advertisement or self-advertising. Vinyl siding, first introduced to the exterior cladding market in the late 1950s, is an alternative to aluminum siding, fiber cement siding, and timber siding. , closures, precision castings, and electrical distribution systems for cars and trucks. The company has 127,000 employees in 40 countries. For more information go to www.alcoa.com Forward Looking Statement Certain statements in this release relate to future events and expectations and as such constitute forward-looking statements involving known and unknown risks and uncertainties that may cause actual results, performance or achievements to be different from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include Alcoa's inability to implement the reorganization and achieve cost-savings at the facilities and other risk factors summarized in Alcoa's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2002. |
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