Alcoa 2012 Annual Report Download - page 37

Energy Facilities
The following table sets forth the electricity generation capacity and 2012 generation of Company-owned facilities:
Country Facility
Alcoa Consolidated Capacity
(MW) 2012 Generation (MWh)
Australia Anglesea 150 1,253,000
Brazil Barra Grande 161 785,000
Estreito 159 1,063,000
Machadinho 119 756,000
Serro do Facão 64 385,000
Canada Manicouagan 132 1,161,000
Suriname Afobaka 156 1,114,000
United States Warrick 524 4,364,000
Yadkin 215 595,000
TOTAL 1,680 11,477,000
Patents, Trade Secrets and Trademarks
The Company believes that its domestic and international patent, trade secret and trademark assets provide it with a
significant competitive advantage. The Company’s rights under its patents, as well as the products made and sold under
them, are important to the Company as a whole and, to varying degrees, important to each business segment. The
patents owned by Alcoa generally concern particular products or manufacturing equipment or techniques. Alcoa’s
business as a whole is not, however, materially dependent on any single patent, trade secret or trademark.
The Company has a number of trade secrets, mostly regarding manufacturing processes and material compositions that
give many of its businesses important advantages in their markets. The Company continues to strive to improve those
processes and generate new material compositions that provide additional benefits.
The Company also has a number of domestic and international registered trademarks that have significant recognition
within the markets that are served. Examples include the name “Alcoa” and the Alcoa symbol for aluminum products,
Howmet metal castings, Huck®fasteners, Kawneer®building panels and Dura-Bright®wheels with easy-clean surface
treatments. The Company’s rights under its trademarks are important to the Company as a whole and, to varying
degrees, important to each business segment.
Competitive Conditions
Alcoa is subject to highly competitive conditions in all aspects of its aluminum and non-aluminum businesses.
Competitors include a variety of both U.S. and non-U.S. companies in all major markets. Price, quality, and service are
the principal competitive factors in Alcoa’s markets. Where aluminum products compete with other materials—such as
steel and plastics for automotive and building applications; magnesium, titanium, composites, and plastics for
aerospace and defense applications—aluminum’s diverse characteristics, particularly its light weight, recyclability, and
flexibility are also significant factors. For Alcoa’s segments that market products under Alcoa’s brand names, brand
recognition, and brand loyalty also play a role. In addition Alcoa’s competitive position depends, in part, on the
Company’s access to an economical power supply to sustain its operations in various countries.
Research and Development
Alcoa, a technology leader in the aluminum industry, engages in research and development programs that include
process and product development, and basic and applied research. Expenditures for research and development (R&D)
activities were $197 million in 2012, $184 million in 2011, and $174 million in 2010.
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