Alcoa's Massena Smelters Reorganize; 107 Positions to Be Eliminated.

Business Editors

MASSENA, N.Y.--(BUSINESS WIRE)--Jan. 8, 2004

Alcoa Primary Metals today announced a reorganization at its two Massena smelters that reflects the impact of the partial curtailment there last year and further reduces costs at the two facilities to keep them globally competitive. The reorganization will result in the elimination of 107 jobs.

Massena's East Smelter is particularly vulnerable to market fluctuations and reorganized to remain open last year thanks in part to a temporary economic incentive offered by the New York Power Authority (NYPA) which expired on December 31, 2003. The plant continues to benefit from a successful cooperative effort between management, the state, the local union membership and elected officials, said Alan Cransberg, President Primary Metals - USA. "Plant employees continue to drive down costs to allow these smelters to compete in world markets," Cransberg added.

"When Massena was forced to curtail some production at both the West and the East plants during 2003 because of rising market power prices and alumina costs, we did not significantly reduce our staffing," said Nelson Dube, Primary Metals Operations Manager. "Unfortunately, now we must readjust staffing levels to take into consideration the lower production. Management and union officials will work in partnership to minimize the impact on our people and the local community."

Dube said the 2004 financial plan for Massena also includes major initiatives to improve manufacturing processes at the facilities through more intensive deployment of the Alcoa Business System and an efficient Reliability Excellence Process. The smelters also plan to improve their safety performance and maintain the company's comprehensive sustainability and environmental policies.

"Power supply remains one of the most important costs drivers in these facilities' operation," Dube said. "Alcoa and NYPA will continue to work on an agreement for long-term power supply for the smelters during 2004. We made progress during 2003 and have identified issues that require work on the part of both parties this year."

Alcoa (NYSE:AA) 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, Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are vinyl siding, closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 120,000 employees in 41 countries. For more information go to www.alcoa.com