Alcoa 1998 Annual Report Download - page 10

value economic impact Inventory dow
ervice improves an integrated approach
lead time reduced improvements in fl
linchpin pull system adding value
e costs are reduced customer service
8
Safe in Jamaica
Jamalco received six of
the seven 1998 Jamaica
Mining and Industry
awards for safety per-
formance in mining and
ore processing. In the
competition’s 23-year
history, this is the first
time that one company
has received so many
awards. Jamalco has
also beaten the national
record for the number of
hours worked without a
serious accident –
5,177,600 work hours
without a lost workday –
erasing the long-standing
national record of
4,503,604.
Cutback at
Eastalco
Alcoa reduced primary
aluminum production at
Eastalco Works in
Frederick, Maryland, by
30,000 metric tons per
year (mtpy). The adjust-
ment was made at the
174,000-mtpy facility as
former Alumax facilities
were being integrated
into the Alcoa worldwide
system. Approximately
150 salaried and hourly
employees took early
retirement or were laid
off. Eastalco is a joint
venture between Alcoa
and a Japanese consor-
tium led by Mitsui & Co.
Ltd. There was no
change in Alcoa’s total
primary aluminum out-
put, as offsetting
increases at other plants
kept total primary alu-
minum production at
current levels. Alcoa has
had 450,000 mtpy of pri-
mary aluminum capacity
idled since 1994.
Fueling the
Space Shuttle
SMD Powder, a part
of Alcoa’s Primary
Metals business unit,
was awarded the
Space Shuttle contract
for the next five years
from Thiokol, which
produces the shuttle’s
rocket boosters. This
new award followed
a successful seven-year
supply contract for
the 1991-1998 Space
Shuttle launches.
Approximately 400,000
pounds of aluminum
powder is consumed
during each launch.
Thiokol also awarded
SMD Powder a #1
rating – their highest
rating for service,
quality and safety.
Bright Products
in France
Alcoa and Pechiney have
signed a letter of intent
for Alcoa to acquire the
bright products business
of Pechiney’s Rhenalu
rolling plant, located at
Catelsarrasin near
Toulouse, France. The
business will become
part of the flat-rolled
products segment of
Alcoa Europe. Bright
products include lighting
fixtures, decorative
applications, and cosmet-
ic packaging. Pechiney
Rhenalu is the aluminum
mill products division
of the Pechiney Group.
Aluminium
for Future
Generations
Together with six other
large European alu-
minum producers, Alcoa
Europe is participating
in a long-term program
to improve the image
of Europe’s aluminum
industry. The program
is called “Aluminium for
Future Generations.”
A survey showed the
need to convey the
industry’s key messages
to its main stakeholders
in a coherent way,
especially with regard to
environmental issues.
The program focuses
on two key issues: recy-
clability and wise use
of energy. Besides
Alcoa Europe, partici-
pants include Alcan
Aluminium, Alusuisse-
Lonza, Hoogovens
Aluminium, Hydro
Aluminium, Pechiney,
and VAW Aluminium.
Belda Named to
Alcoa’s Board
Alain J. P. Belda, 55,
Alcoa’s president and
chief operating officer,
was elected to the
Alcoa Board of Directors
in September. He will
become president and
chief executive officer
in May 1999. At that
time, Paul O’Neill will
relinquish the position
of chief executive officer
and will become non-
executive chairman.
January 1, 2001, Belda
will become chairman
of Alcoa when O’Neill
retires from the
company and from
the Alcoa board.