Alcoa announced that it intends to close or curtail approximately 531,000 tonnes, or 12% of its global smelting capacity, to lower the company’s position on the global aluminum cost curve and improve Alcoa’s competitiveness.

The company will permanently close its smelter in Alcoa, Tennessee, which was curtailed in 2009, along with two of the six idled potlines at its Rockdale, Texas smelter. Together, these closures will reduce Alcoa’s global smelting capacity of 4.5 million tonnes per year by 291,000 tonnes or about 7% The curtailments, to be announced in the near future, will reduce Alcoa’s global smelting capacity by an additional 240,000 tonnes, or about 5%

Mr Klaus Kleinfeld chairman and CEO of Alcoa said that “These are difficult but necessary steps to improve Alcoa’s competitiveness, preserve and grow shareholder value and protect jobs in the rest of the Alcoa system.”

Mr Kleinfeld added that Alcoa will work with all affected communities to explore ways to redevelop closed facilities and will consult with employees and work unions/councils impacted by curtailments. We recognize our responsibility to the people and communities of the affected facilities.

The curtailments are expected to be complete by the first half of 2012. Alcoa’s alumina production will be reduced across the global refining system to reflect the final curtailments in smelting as well as prevailing market conditions. The curtailments will contribute to the Company’s long term goal of lowering Alcoa’s position on the world aluminum production cost curve by 10 percentage points.