Alcoa Update to Smelter Ramp-up at Ma’aden-Alcoa Joint Venture
Alcoa (NYSE: AA) today announced that the smelter at the Ma’aden-Alcoa joint venture, which remains in initial start-up phase, has halted production on one of two potlines.
The temporary shutdown was undertaken after a period of pot instability. The joint venture is actively working to restore the potline, and it is expected to be completed and back online between the first and second quarter of 2014.
The ramp-up of the second potline was ongoing and will now be accelerated.
There is not expected to be any impact to Alcoa’s customers.
There is no impact to any other part of the joint venture project, including the mine, refinery and rolling mill, which all remain on schedule.
For more information on the Ma’aden-Alcoa joint venture project visit: http://www.alcoa.com/saudi_arabia.
About Alcoa
Alcoa is the world’s leading producer of primary and fabricated aluminum, as well as the world’s largest miner of bauxite and refiner of alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics, and industrial markets over the past 125 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa’s operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for 12 consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 61,000 people in 30 countries across the world. For more information, visit www.alcoa.com, follow @Alcoa on Twitter at www.twitter.com/Alcoa and follow Alcoa on Facebook at www.facebook.com/Alcoa.
About the Ma’aden Alcoa joint venture
In its initial phases, the joint venture will develop a fully integrated industrial complex which will become the world's preeminent and lowest-cost producer of primary aluminum, alumina and aluminum products, with access to the growing markets of the Middle East and beyond. The complex comprises:
- A bauxite mine with an initial capacity of 4,000,000 metric tons per year
- An alumina refinery with an initial capacity of 1,800,000 metric tons per year
- An aluminum smelter with an initial capacity of 740,000 metric tons per year
- A rolling mill with initial capacity of 380,000 metric tonnes per year.
It will be the first in the Middle East capable of producing food grade can sheet, as well as sheet for automotive, building and construction applications. Upon completion, the mill will be one of the most technically-advanced mills in the world.
Forward-Looking Statements
This release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “anticipates,” “estimates,” “expects,” “should,” “targets,” “will,” or other words of similar meaning. All statements that reflect Alcoa’s expectations, assumptions or projections about the future other than statements of historical fact are forward-looking statements, including, without limitation, forecasts concerning global demand growth for aluminum, targeted operating performance or schedules for completion and start-up of growth projects, and statements about Alcoa’s strategies, outlook, and business and financial prospects. Forward-looking statements are subject to a number of known and unknown risks, uncertainties, and other factors and are not guarantees of future performance. Important factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: (a) material adverse changes in aluminum industry conditions; (b) deterioration in global economic and financial market conditions generally; (c) unfavorable changes in the markets served by Alcoa; (d) the unavailability or interruption of energy supplies, or increases in energy costs, including electricity, natural gas, and fuel oil; (e) increases in the costs of other raw materials; (f) unexpected events, unplanned outages, supply disruptions, or failure of equipment or processes to meet specifications; (g) the risks associated with large infrastructure construction projects; (h) Alcoa’s inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations (including moving its alumina refining and aluminum smelting businesses down on the industry cost curves and increasing revenues in its Global Rolled Products and Engineered Products and Solutions segments) anticipated from its restructuring programs, productivity improvement, cash sustainability, and other initiatives; (i) Alcoa’s inability to realize expected benefits, in each case as planned and by targeted completion dates, from newly constructed, expanded, or acquired facilities, or from international joint ventures, including the joint venture in Saudi Arabia; (j) political, economic, and regulatory risks in the countries in which Alcoa operates or sells products, including unfavorable changes in laws and governmental policies, civil unrest, or other events beyond Alcoa’s control; (k) the outcome of contingencies, including legal proceedings, government investigations, and environmental remediation; (l) the business or financial condition of key customers, suppliers, and business partners; and (m) the other risk factors summarized in Alcoa’s Form 10-K for the year ended December 31, 2012, and other reports filed with the Securities and Exchange Commission. Alcoa disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law.
Contact
Alcoa
Investor Contact:
Kelly Pasterick, 212-836-2674
Kelly.Pasterick@alcoa.com
or
Media Contact:
Monica Orbe, 212-836-2632
Monica.Orbe@alcoa.com
