Alcoa selects Hungary as site for new European wheel plant.

CLEVELAND--(BUSINESS WIRE)--Dec. 4, 1995--Alcoa has selected Skekesfehervar, in Hungary, as the site in Europe for a new $32.5-million plant to manufacture forged aluminum wheels for trucks and buses. Plans for the plant were announced in July when Alcoa began the site-selection process.

Alcoa has been selling a special version of its U.S.-made truck and bus wheels in Europe in growing volumes for 15 years. Robert L. Clements, Jr., Vice President and General Manager of Alcoa Wheel Products International says, "Market demand for our strong, lightweight wheels throughout the world will soon exceed our U.S. production capacity. To insure adequate and timely supplies in Europe, where the wheels are being increasingly specified as a factory option, especially by operators of large, weight-sensitive truck fleets, we will build the new plant with enough capacity to meet demand well into the next century."

Mr. Clements added that in the early phases of operation, the plant's capacity will allow Alcoa to consider exporting the European-made wheels to South American and other geographic markets where ISO 335 European-type wheels are being used, such as the U.S. and Australia. The plant should also provide capacity for forged 4x4 and motor-home wheels to be sold worldwide.

Forged aluminum truck wheels were developed nearly 50 years ago by Alcoa using aircraft-wheel design and manufacturing technologies. They are of one-piece, forged construction for high strength and durability and are machined to very close tolerances to make them true-running for driver comfort and to extend tire life.

The wheels provide weight savings of from 350 kg to 650 kg per truck-trailer combination compared with steel wheels, depending on the number of wheels on the combination. Operators use the weight savings to increase payloads and improve fuel economy. Fitted on coaches, forged aluminum wheels, which have an appealing functional appearance, offer similar weight savings and eliminate need for costly, decorative wheel covers that are often lost or damaged.

Alcoa is the world's largest aluminum company with 164 operating and sales locations in 26 countries. In Europe, Alcoa operates 32 plants in eight countries with 8,300 employees. Alcoa had worldwide sales in the first nine months of 1995 of $9.4 billion.

CONTACT: Alcoa, Pittsburgh

A. T. Posti, 412/553-4465