Alcoa 2010 Annual Report Download - page 38

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Alcoa requires substantial capital to invest in greenfield and brownfield projects and to maintain and prolong the life
and capacity of its existing facilities. If demand for aluminum improves, Alcoa’s ability to take advantage of that
improvement may be constrained by earlier capital expenditure restrictions and the long-term value of its business
could be adversely impacted. The company’s position in relation to its competitors may also deteriorate.
Alcoa may also need to address commercial and political issues in relation to its reductions in capital expenditures in
certain of the jurisdictions in which it operates. If Alcoa’s interest in its joint ventures is diluted or it loses key
concessions, its growth could be constrained. Any of the foregoing could have a material adverse effect on the
company’s business, results of operations, financial condition and prospects.
Unexpected events may increase Alcoa’s cost of doing business or disrupt Alcoa’s operations.
Unexpected events, including fires or explosions at facilities, natural disasters, war or terrorist activities, unplanned
outages, supply disruptions, or failure of equipment or processes to meet specifications may increase the cost of doing
business or otherwise impact Alcoa’s financial performance. Further, existing insurance arrangements may not provide
protection for all of the costs that may arise from such events.
The above list of important factors is not all-inclusive or necessarily in order of importance.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
Alcoa’s principal office is located at 390 Park Avenue, New York, New York 10022-4608. Alcoa’s corporate center is
located at 201 Isabella Street, Pittsburgh, Pennsylvania 15212-5858. The Alcoa Technical Center for research and
development is located at 100 Technical Drive, Alcoa Center, Pennsylvania 15069.
Alcoa leases some of its facilities; however, it is the opinion of management that the leases do not materially affect the
continued use of the properties or the properties’ values.
Alcoa believes that its facilities are suitable and adequate for its operations. Although no title examination of properties
owned by Alcoa has been made for the purpose of this report, the company knows of no material defects in title to any
such properties. See Notes A and H to the financial statements for information on properties, plants and equipment.
Alcoa has active plants and holdings under the following segments and in the following geographic areas:
ALUMINA
Bauxite: See the table and related text in the Bauxite Interests section on pages 5-6 of this report.
Alumina: See the table and related text in the Alumina Refining Facilities and Capacity section on pages 7-8 of
this report.
PRIMARY METALS
See the table and related text in the Primary Aluminum Facilities and Capacity section on pages 9-11 of this
report.
FLAT-ROLLED PRODUCTS
See the table and related text in the Flat-Rolled Products Facilities section on pages 11-12 of this report.
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