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Alcoa to Reduce Alumina Production at Port Comfort by 25% (posted 10/31/08)

October 31, 2008
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Alcoa will reduce production at its Point Comfort, Texas, alumina refinery by approximately 550,000 metric tons per year by the end of November.

Alcoa will reduce production at its Point Comfort, Texas, alumina refinery by approximately 25% (approximately 550,000 metric tons per year) by the end of November. The curtailment of two digesters at the Point Comfort facility follows Alcoa’s announcement last month to curtail production at its Rockdale, Texas, aluminum smelter as a result of uncompetitive power supply to that smelter and overall market conditions.

“Aluminum prices have fallen dramatically over the past few months,” said Bernt Reitan, Alcoa executive vice president and president of Global Primary Products. “We are reviewing each and every potline across our entire global smelting system, and we are doing the same with each digester within our worldwide refining system. We will continue to take steps to match production with demand in the marketplace, focusing on our highest cost operations.”

As a result of the curtailment at Point Comfort, the workforce will be adjusted accordingly, with the majority of the impact on contractors at the refinery. Costs for the curtailment will not be material. The Point Comfort refinery is part of Alcoa World Alumina and Chemicals (AWAC), a global alliance between Alcoa and Alumina Ltd., with Alcoa holding 60%.

Visit www.alcoa.com for additional information.

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