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ALCOA ISSUES STATEMENT

 PITTSBURGH, April 29 /PRNewswire/ -- The following statement was issued to Alcoa's (NYSE: AA) Pittsburgh-area employees today:
 "It is time to take the next step in Alcoa's evolution to be a premier, global company with financial performance to match our ambition.
 "In August 1991, we created a new structure for our businesses. The new structure placed the primary emphasis on customer satisfaction and meeting customer needs and aligned the resource units of the corporation into a support role for the 22 businesses. Over the past 18 months, we have redesigned and implemented new operating processes and procedures to reinforce this structure.
 "The new structure has created a new level of energy and initiative in the business units as we sharpened accountability. Business unit presidents have accepted responsibility for the performance of the assets in their business units, and the rate of improvement has accelerated markedly. With these improvements, Alcoa was profitable in the first quarter of 1993; without them, we would have joined the ranks of the unprofitable.
 "The changes we will make now have three dimensions. The first element of change will be to further redefine and focus the work of the corporate office and the resource units of the company. The collaborative efforts of the resource and business units over the past two years have generated dramatic improvements in areas such as shared financial services and benefits plan administration, and we are convinced that further collaborative re-engineering of critical processes will enable resource units to deliver even more value to their business unit customers at lower cost.
 "At the same time, we see a need to sharpen the accountability of the corporate center to identify and secure important strategic objectives that involve more than one business unit.
 "The second dimension of change is associated with the use of information technology. There is enormous potential to increase the value we create by accelerating our use of new information system technology while eliminating redundant systems.
 "The third dimension of the changes we will make is cost reduction.
 "The direct effect of all three dimensions of change will be to reduce annual costs by $50 million. We believe the full implementation of these changes and their secondary effects will be substantially more. A consequence of these changes will be the elimination of approximately 400 jobs in Allegheny Center, the Alcoa Technical Center, and the Alcoa Building. Implementation will begin immediately.
 "In conjunction with these changes, we are examining the feasibility of a new location in Pittsburgh for the company's central resource units. The principal objective of such a prospective relocation is to have more flexible space that will accommodate process-focused organizations rather than traditional functional departments separated by floor levels. If we can find an acceptable economic alternative to our current space, we will relocate these units.
 "Independent of this decision, we have also decided to create a new, separate corporate center in Pittsburgh, comprised of the principal executive officers of the company and their direct support staffs. This new center will include approximately 45 people. We believe this separation will sharpen the focus of the executive group on major strategic issues by reducing their involvement in day-to-day administrative management issues.
 "As the change is made, we will define new roles and responsibilities for this executive group as an entity and for sub-teams. An important aspect of this change will be the assignment of specific accountability for quickly capturing major economic values that transcend individual business unit accountabilities. We will make this shift as soon as space is secured."
 -0- 4/29/93
 /CONTACT: A.T. Posti of Alcoa, 412-553-4465/
 (AA)


CO: Alcoa ST: Pennsylvania IN: MNG SU:

CD -- PG013 -- 2844 04/29/93 16:22 EDT
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Date:Apr 29, 1993
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