Alcoa 2013 Annual Report Download - page 30

The MOU with the Government of Angola for the feasibility study of an aluminum smelter and related power assets
has expired, and will not be extended.
Global Rolled Products
The principal business of the Company’s Global Rolled Products segment is the production and sale of aluminum
plate, sheet, and specialty foil. This segment includes rigid container sheet (RCS), which is sold directly to customers
in the packaging and consumer market. This segment also includes sheet and plate used in the aerospace, automotive,
brazing, 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 produced its first coil at the
end of 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 mt of a wide range of products suitable for further downstream manufacturing in the complex’s
product lines. The products include automotive heat-treated and non-heat-treated sheet, building and construction sheet
and foil stock sheet. The line is expected to start production by the end of 2014.
In January 2011, Alcoa and China Power Investment Corporation (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., with its headquarters in Shanghai, was established in November 2012 and
is majority owned and managed by Alcoa. In 2014, during the next phase of this joint venture, three Alcoa businesses
will be integrated into the new joint venture company. These three businesses include a brazing sheet facility located in
Kunshan, China and a can sheet facility located in Qinhuangdao, China. The third business is discussed below, under
the Engineered Products and Solutions segment.
In order to meet rising demand for aluminum auto sheet from the automotive market, the Company invested in a $300
million expansion of its Davenport Works plant. The expansion was completed on time and on budget, with the first
coil produced in December 2013. The expansion is creating an additional 150 full time jobs in Davenport. An
economic development incentive package from the Iowa Department of Economic Development helped secure the
selection of Davenport for the expansion.
In addition, the Company broke ground on a $275 million expansion of its Tennessee operations in August 2013. This
expansion will convert some of the plant’s existing can sheet capacity to high-strength aluminum automotive sheet
capacity, as well as install incremental automotive capacity. Once completed in mid-2015, the expansion will create an
additional 200 full time jobs in Alcoa, Tennessee.
On August 31, 2012, Alcoa assumed full control and ownership of Evermore Recycling LLC from its prior joint
venture partner, Novelis Corporation, and integrated it into the Company.
14