Alcoa 2012 Annual Report Download - page 27

hydroelectric power system and related infrastructure improvements, including a port. In 2008, Greenland’s parliament
allocated funding to support the second phase of joint studies with Alcoa and endorsed that the smelter be located at
Maniitsoq. In 2010, Alcoa and the Greenland Home Rule Government revised the completion dates for feasibility
studies associated with development of the proposed integrated hydro system and aluminum smelter at Maniitsoq to
enable more detailed consideration of aspects of the project related to construction and provision of energy and to
allow the Greenland parliament sufficient time to deliberate and vote on critical aspects of national legislation
concerning the project. The feasibility studies were completed in the fourth quarter of 2011. In December 2012, the
Greenland parliament enacted framework legislation encompassing particular requirements of large scale
developmental projects. The parliament also approved continuation of feasibility studies as described in the MOU.
In the fourth quarter of 2011, Alcoa and the Government of Angola, through the ministries of Energy, Water &
Geology, Mines and Industry, entered into an exclusive MOU regarding cooperation on a feasibility study for an
aluminum smelter in Angola with a 720,000 mtpy capacity. The MOU also encompasses a hydroelectric power system
and power transmission facilities to be built by the Government and a resulting long term power purchase agreement.
Global Rolled Products
The principal business of the Company’s Global Rolled Products segment is the production and sale of aluminum
plate, sheet and foil. This segment includes rigid container sheet, which is sold directly to customers in the packaging
and consumer market. This segment also includes sheet and plate used in the aerospace, automotive, commercial
transportation, and building and construction markets.
As noted above, Alcoa and Ma’aden are developing a rolling mill in the Kingdom of Saudi Arabia. In 2010, the joint
venture entity, Ma’aden Rolling Company signed project financing for its rolling mill and broke ground on the
construction of the mill. Initial capacity is approximately 380,000 mtpy. The rolling mill is anticipated to start
sometime in 2013. In March 2012, Alcoa and Ma’aden announced commencement of work to extend the product mix
of their aluminum complex currently under construction, enabling the two companies to include capability for
producing approximately 100,000 metric tons of a wide range of products suitable for further downstream
manufacturing in the complex’s product lines. They include automotive heat-treated and non-heat-treated sheet,
building and construction sheet and foil stock sheet. The line is expected to start production at the end of 2014.
As discussed above, in 2011, Alcoa and CPI signed an MOU followed by a Letter of Intent that provides a framework
for the creation of a joint venture which includes a focus on producing high-end fabricated aluminum products in
China. In February 2012, Alcoa and CPI announced that they finalized an agreement to establish a joint venture
company to produce high-end fabricated aluminum products in China. The new joint venture company, Alcoa CPI
Aluminum Investment Co. Ltd., was established in November 2012 and will be majority owned and managed by Alcoa
and based in Shanghai.
In March 2012, the Company broke ground on a $300 million expansion of its Davenport Works plant to meet rising
demand for aluminum from the automotive market. The expansion will create an additional 150 full time jobs in
Davenport once completed. The planned expansion was announced in September 2011 and is expected to be completed
by the end of 2013. An economic development incentive package from the Iowa Department of Economic
Development helped secure the selection of Davenport for the expansion.
On August 31, 2012, Alcoa assumed full control and ownership of Evermore Recycling LLC (Evermore). Evermore
had previously been a joint venture between Alcoa and Novelis Corporation, created for the purpose of used beverage
can procurement.
16