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FIEMA pays tribute to Alumar Alumar was honored in December, by FIEMA - Federation of the Industries of Maranhão, for the Unit's important contribution to the development of the State. Page 11 ALCOA LATIN AMERICA MONTHLY NEWSLETTER - Nº 45 - FEBRUARY, 2006 Growth in Venezuela Volunteers show their profile Created originally for the production of caps, Alcoa CSI See the new profile of Alcoa's volunteers, who have already been citizen- Venezuela is in charge of trading the products manufactured ship champions in previous years and helped establish the Country as the by the Colombia Unit and is developing at full speed. Its major leader in Volunteer work. This study is conducted every three years by the target is the beverages market and the expectation is that Company's Community Relations Department. 2006 will be a very positive year. Page 12 Pages 6 and 7 Expansion in Itapissuma The Governor of Pernambuco celebrates the beginning of the FRP expansion construction Governor Jarbas Vasconcelos was received by Franklin L. Feder, President and Michael Humpert, FRP Director, Alcoa Latin America for the ceremony that marked the beginning of the expansion of the Rolled Products Division in Itapissuma, which is expected to start-upin 2007. This expansion will permit 30% increase in the Unit's production Page 3. Alcoa CSI Chile is awarded the National Quality Award Considered a benchmark in business performance, Alcoa CSI Chile was awarded in January the award ChileCalidad 2005. The country's National Quality Award is internationally recognized and its goal is to distinguish Chilean companies and organizations that show excellence in their management, involving aspects such as results, awareness, understanding, dissemination and cultural changes. The participation of all Unit employees in the search for this award was inten- sive and the result of such a strong dedication could not be otherwise. Page 9 GENTE EM AÇÃO - 2 Growth and Commitment and is expected to start-up in 2007. vey gives us data for us to know our numerous vol- The social-environmental and economic value that unteers, whose work placed Brazil as the citizen- this investment will bring to the region goes without ship champion and leader in volunteer work saying. It will help confirm Alcoa Latin America as amongst all Company subsidiaries worldwide. Gente em Ação nº 45 one of the most important and profitable Alcoa In addition to this profile, we will also present a February, 2006 Subsidiaries worldwide. However, one must keep in report on the entire Community Relations work mind that this position is one of high responsibility conducted last year. These are impressive num- Brazilian Issue and a daily challenge, requiring financial invest- bers, that underscore our commitments with the ments as well as People development. communities where we operate. Published by Alcoa Alumínio S.A. After announcing the investments approved by During the ceremony, where, together with the We also discuss, in this issue, matters of deve- Corporate Affairs Alcoa Inc. Management Board., "Gente em Ação" Governor of Pernambuco we unveiled the plaque cele- lopment and preparation of leaders, training, Alcoa Latin America reports in this issue the prestige of having the brating the expansion of Itapissuma, we could see results from other Latin America plants, in addi- presence of Governor Jarbas Vasconcelos, along clearly the pride and enthusiasm of all those who are tion to recognitions, awards and honors. All of with the entire top management of the Business part of the Plant, as well as their visible willingness these items are, undoubtedly, reasons for celebra- Corporate Affairs Director Unit, in the ceremony that celebrated the begin- to continue to face up and to win all the challenges tion. However, we want more than that. We want Nemércio Nogueira ning of the construction works for the expansion of imposed by the duty of global competitiveness. them to be reasons for our daily reflections on our the FRP Plant in Pernambuco. It is with the same pride that we publish in this role as professionals and citizens. The celebration is fully justified: With investments issue the profile of Alcoan volunteers, that con- Coordination in the amount of US$ 30 million in this expansion, tribute so much for the Company's recognition Débora Carvalho announced by the end of last year, the Plant will both domestically and internationally by its inten- Franklin L. Feder increase by approximately 30% its production capacity, sive social engagement. A recently conducted sur- President - Alcoa Latin America Editorial Production CDI Comunicação Letters Editing Vanessa Meriqui MTb 12.993-SP This section was created for the free expression of our readers and it is to open to the contribution of all. Send your e-mail with testimonials, suggestions, Rosa Vitolo comments, etc. to firstname.lastname@example.org MTb 21.084-SP PLAY A PART! Graphic Design I would like to congratulate everyone at Alcoa e|ou mkt de relacionamento for one more victory, introduced at the World Economic Forum. It is gratifying to know that company's awareness of values is not only intensively worked at corporate level, but Art Direction In the next issue of Gente em Ação also at the level of all stakeholders, resulting Preparation of Best in great social, economic and environmental Fábio Assis Practices in ABS for commitment. Alcoa's 25 Smelters Thanks for sharing. I did like it and share I wish you ever growing success! worldwide. Nr. of copies with my people. Best practices flowing.... Fabiana Cotelesse Souto 8.500 copies Cheers Business Manager Editora Segmento Baesa invests over Arrigo Bodda - Human Resources Director Razão Contábil R$ 2 million in Editorial Board: Primary Metals - Alcoa Europe SA Harvard Business Review environmental Conjuntura Econômica (FGV) reserves Andrezza Camargo, Camila Brito, Camila Meirelles, Carla Mesquita, 10th anniversary of the Excellent idea to deliver Gente em Ação at Cidia Nazaré, Débora Carvalho, home; this way we can share Alcoa news and Extruded Products novelties with the family. In addition, the Plant in Utinga Edson Schiavotelo, Elisabeth newsletter looks very good. Congratulations Fantastic newsletter! Very well done. for these innovations. Best regards, Rob Russo, Fátima Brandão, João Biodiesel at Alcoa Rob Morrison, Alcoa Inc. Bayma, Maria Cristina Freire, José Ademar S.Corrêa Controller - AFL DO BRASIL eCommunications Project Manager Maurício Born, Nelson Ferreira, Internal Communications Rodolfo Haenni e Suzana Sheffield. GENTE EM AÇÃO - 3 Governor Jarbas Vasconcelos visits Itapissuma E s c o r t e d b y Fra n k l i n L . Fe d e r, P re s i d e n t a n d M i c h a e l H u m p e r t , F R P D i re c t o r, A l c o a L a t i n A m e ri c a , the Governor of Pernambuco celebrated the beginning of the Rolled Products plant expansion. Closures, generating 1,100 direct jobs, with the cooperation of 300 outsourced people. The expansion will employ 200 more people, directly and indirectly. As of 2007, production is expected to go from 35,000 to 43,000 ton/year, and this addi- tional capacity will be destined mainly to the domestic market. Even considering the major goal of expanding its presence in the domes- tic market, Alcoa wants to continue to be Governor Jarbas Vasconcelos was present at investments in infrastructure made by the sales point without infrastructure ", said Jarbas internationally competitive. the Itapissuma Unit in January for the ceremo- state government were determining factors for Vasconcelos. In addition to FRP, that manufac- The Unit's exports amount is approximately ny that marked the beginning of the expansion the inflow of resources to Itapissuma. "This tures aluminum sheet and foil, the Itapissuma US$ 40 million per year, and the Company is of the Rolled Products Division. With invest- investment is extremely important for us, Unit also produces Extruded products and one of the major exporters in the State. ments of US$ 30 million allocated to this since the Rolled Products business stands out expansion, announced by end of last year, the among the Company's operational Units. In Plant will increase by 30% its production addition, we can contribute even more to the capacity, and this expansion facility is expected economy of Pernambuco, where we have to start-up in 2007. been present for over 20 years", emphasized The governor was welcome by Franklin L. Franklin Feder. Director Michael Humpert Feder, President and Michael Humpert, FRP made a presentation about the FRP Division, Director, Alcoa Latin America. Franklin production growth and the higher impor- emphasized, at the occasion, the importance tance of the business to the Company after of articulation between the public and private this expansion. sectors for projects of this nature and Said the The Governor emphasized the importance of resources used for the expansion of the Plant the Company's contribution to the develop- in Pernambuco could have been channeled to ment of the state and his commitment to the other Alcoa Units in 42 countries, but the infrastructure. "No one opens a plant or a Spreading local Paulo Roberto Lima, who works as a lab technician in the location. "I've never expected such a huge repercus- sion for a work of mine. The creative process was natu- art throughout ral and I am very happy to be able to contribute for the Plant and for Alcoa", says Paulo, who also teaches how the world Paulo Roberto and Carlos Vinícius to play the guitar, makes artistic pieces in ceramics, wood and other materials, in his own free time. The corner stone used to mark the beginning of I was a bit concerned with the responsibility that comes the FRP expansion was developed by Carlos Vinícius with a work of this type, due to its historical importance Gonçalves de Andrade, who works a FRP mechanic for the Company. However, after it's done, it is extre- technician in Itapissuma, and also deve-lops logos, mely gratifying to know that its possible to translate the catalogues and other materials for the Unit's internal expectations of many into art, and create a symbol for a campaigns. Letting his natural skills flow, Vinicius work as huge as this", explains Vinicius. has taken design courses and other courses in the Another icon known to all Alcoa employees worldwide graphic design area, improving his talents, also du- was also created by an artist that works at the ring his own free time. "At the beginning, Itapissuma Unit: the ABS logo, developed in 1998 by GENTE EM AÇÃO - 4 Article Alcoa is ethics leader in world ranking Irresponsible? W Alcoa has received numerous awards and honors in Brazil, The Company is the community and for its social, economic and environ appointed among the ten top ethical companies sustainability - in favor of the community. worldwide by Covalence However, it has also been the target, in The most skeptical may claim, perhaps, that Both in Poços de Caldas and São Luis, Ethical Ranking the last few days, of an attack led by two the International awards and honors that we Alcoa maintains environmental parks, volun- Swiss NGOs that claim that our Company have been given are due to some type of influence, tarily created - not imposed by law - that, in Alcoa was recognized as one of the ten has shown irresponsible social and environ- favoritism or any other factor or reason that addition to protecting native species of the leading multinational companies in mental behavior. This claim, which propo- are foreign to inherent merit. local flora and fauna, receive around 40 2005 by Covalence Ethical Ranking, a ses the same "Public Eye" anti-award to be thousand visitors per year, who participate in Swiss institution that analyzes compa- given to Bayer, Coca Cola, Chevron, But the reality is these awards environmental education activities. nies in the field of ethical reputation. Novartis, Walt Disney, Citigroup and Nestlé - are not offered subjectively: they It was selected in two categories: the will be taken by the two NGOs to Davos du- are granted after analyses of These parks have a total area of more than ring the recent meeting of the World objective indicators, conducted by two thousand hectares. While in São Luis the most ethical (8th. place) and the com- Economic Forum. Last year, the focused external and independent experts. park comprises a valuable and protected pany of higher ethical progress (3rd. companies were Dow, Shell, Wal-Mart, KPMG And, a simple query to some of these mangrove region of 1,800 hectares, the Poços place), among 300 companies world- and Nestlé. indicators will easily eliminate de Caldas park is located in a 200 hectares wide that operate in the top ten indus- any type of suspicion. Private Reserve of Natural Assets (RPPN-in tries of the economy. In order to be reco- However, how is it possible for Portuguese language). gnized as one of the ten most ethical Alcoa to be simultaneously wonderful For instance, in terms of work safety, we, at companies, the company has to be and awful? Alcoa, were able to reach one of the lowest rates of In terms of greenhouse effect gases, our chosen in these two categories. In work accidents worldwide. Less than one absence largest plant, Alumar, reached in 2004, the addition, Alcoa also ranked first as the In Latin America, just to mention a few of from work per year for each group of 1,000 dramatic reduction of 73% of emissions, in the most recent honors, disseminated in the employees. And we continue to invest and develop, only two years, from 2002 to 2004. most ethical company in the mining printed media and in the MyAlcoa portal, we relen-tlessly, an effort to reach zero incidents. and metals industry. were the first company to be awarded the In order to show the social-economic bene- "This recognition supports our reputa- City-Friendly Company Seal, in São Luís, an Our responsibility regarding safety is just the fit that the aluminum industry may generate tion as a Company with values that award recently created by the local authori- beginning. Let's consider a few facts: The Alumar for the locations where it operates, it suffices guide us on how to handle employees, ties. The City Council of Poços offered us the Consortium plant in São Luis do Maranhão has to show one number: the little Jurity, where stakeholders, customers and commu- City's Gratitude Diploma, which Alcoa is the reduced its water consumption by no less than we have just arrived, is already the town that nity. This is crucial for the long-term first private company to be awarded. Alcoa 40% in the last three years only. And the electri- has grown the most in tax payments, in the success of Alcoa", said Alain Belda, CSI is among the Best Companies to Work cal power consumed by Alcoa plants corresponds entire state of Pará, that has already Company's CEO e world chairman. For in Argentina, Chile, Colombia and Peru. to a little more than 1% of the electricity available achieved nothing less than 258%. Based in Geneve, the Covalence Group And, in Brazil, Alcoa Alumínio is listed in in the Brazilian system. In addition, the produced this roster for the seventh consecutive year. aluminum is endlessly recyclable, meaning that How can we be called "irresponsible", if, in is supported by the Graduate Institute this metal is a real "energy bank". And, while alu- addition to all that, we have also achieved in of Development Studies at the In addition, globally, the Fortune maga- minum is recyclable, the water of rivers, source of Brazil, levels of participation of 80% and University of Geneva and several zine considered Alcoa the Best of the Best this energy, is renewable. 90% in the Bravo!, Program, respectively in NGOs. It was founded in 2001 and its amongst Blue Ribbon companies, for São Luis and Poços de Caldas? purpose is to measure the reputation appearing four times in the same year in the On the other hand, it is obvious, that both of companies according to an index magazine's good corporate performance financially and environmentally, it is of major However, in spite of all these facts; of all that takes 45 criteria into considera- lists. Alcoa is among Fortune's Most interest for those who produce aluminum, to the undeniable and visible social, economic tion, which include labor standards, Admired Companies in the World, and among reduce the amount of power used in the process. and environmental progress of the regions environmental impact, social respon- the Most Admired Globally. During the last Alcoa Aluminio's consumption is already lower where we operate; the number of national World Economic Forum in Davos, in January than the world average of the industry. and international awards and honors sibility and international presence. last year, it was ranked among the three received along these years, Alcoa has just These measurements are based on a best companies in the world in sustainabi- But, worldwide, the company been appointed, among other companies, as collection of thousands of documents lity. And it was chosen as one of Top Green continues to invest permanently we saw in the media these last days, for an supplied by the media, NGOS, acade- Companies worldwide by the magazine and intensively in technological anti-award designed for companies "that are mia and other sources, using the Business Week, together with the organiza- and scientific research with the excellent in social behavior and environmen- EthicalQuote system. tions Climate Group and Innovest Strategic purpose of reducing even more this tally irresponsible", called Public Eye, created Value Advisors. consumption. by two Swiss NGOs, Pro Natura-Friends of the GENTE EM AÇÃO - 5 Perry hat is this about? Minnis underscores in other countries and globally, for its engagement with the value mental contributions - summarized under the concept of of ethics Nemércio Nogueira Earth Switzerland and Berne Declaration. infallible, our Company does have an companies, by the Covalence Ethical Based on the arguments formulated by absolute commitment to the continuous Ranking, which points out how companies another NGO called International Rivers search for the best. This commitment of are perceived in the ethics field. Alcoa ranks Institute, these entities claim that "the glo- Alcoa's, and of each of the 129,000 Alcoans, 8th, in the Best Ethical Score category and bal aluminum industry is the most energy- in 400 production units, in 42 countries, is third in the Best Ethical Progress category. intensive in the world, needing huge amounts materialized in a large number of standards; In addition, we are the first in Best Ethical of electrical power to produce primary alu- individual and team actions; local, national Result in the planet for the entire Mining Alexandre Pagotti, Tereza Cavalca, André Almeida, José Carlos Almeida, José Ademar Corrêa, Perry Minnis, Ronaldo Schmidt, minum. This requires burning a large amount and global policies that view to make more and Metals industry. Igor Cardoso e Neuza Silva of fossil fuels, or, alternatively, the construc- and more tangible the meaning of the word tion of large hydro-electrical dams. Any way, sustainability, day by day, every day. Also based in Switzerland, Covalence - that In order to address personally the Alcoa is a major pollutant and destroyer of is supported by the Graduate Institute of Company's Ethics Policy, Perry Minnis, global river systems" It is certainly thanks to this attitude, Development Studies at the University of Alcoa's world Ethics Director came to translated into factual reality, that we Geneva and several NGOs - monitors 300 They also claim that "heavy fines were have just been awarded two international multinational companies from ten production Brazil in December, last year. He visit- imposed on Alcoa for violating the USA Clean recognitions. sectors, among which 220 are ranked among ed several Brazilian Units, stressing Air Act and for polluting coastal and river the companies of highest market capitaliza- the importance of the Ethics policy, ecosystems with chemicals and heavy me- For the second consecutive year, tion in the Dow Jones Worldwide Index. especially for a Global Company like tals. In Australia, the emissions of Alcoa's Alcoa was appointed one of the most plants have caused diseases in workers, sustainable companies worldwide, Covalence's Ethical Ranking is based on a ours, where the misdemeanor of an local populations and cattle". during the World Economic Forum, reputation index, with quantitative data, employee may affect the Company's in Davos, Switzerland. This honor is which are ranked according to 45 criteria, reputation. Perry was "virtually" After declaring that, because it needs a due to its performance and strate- among labor standards, environmental high volume of electrical power, Alcoa is gic capacity of dealing with environ- impact, social responsibility and inter- known by all due to his periodic con- making an effort to build large hydro-elec- mental, social and business issue. national presence. By means of its tact, via Internet, with Alcoa's trical plants in the Amazon; and after EthicalQuote system, Covalence integrates employees all over the world, with the claiming that the new smelter that the The list of companies with the highest thousands of documents from the media, Company is building in Iceland "will destroy sustainability level in the planet is prepared NGOs, academia and other sources, in order purpose of developing the Ethical one of the last wild areas in Europe", the by Innovest Strategic Value Advisors Inc., an to reach the scores. principles throughout the organiza- two Swiss organizations demand the ban- international company focused on research tion. This visit, as well as the Ethics ning of the construction of new dams in the about investments, in association with the As we can see, although perfection is a training courses available at the Amazon region. Canadian magazine Corporate Knights. They goal that is unattainable by definition - published the list of the 100 Most because no matter how good people and Internet, strengthen one of the most So, this is the picture. Sustainable Companies Worldwide for the organizations are, they always want to be important Company Values, conside- first time in 2005. These companies are better - and although infallibility is also red one of the major pillars of its sus- Should we simply ignore the fact, claim- publicly selected, amongst almost two thou- unattainable - since is neither a human nor ing that these NGOs don't know Alcoa well, sand companies, according to the MSCI corporate feature - objective international tainability. In his visits, Minnis talked and, therefore, have no conditions to judge World index, based on surveys and analyses criteria and our most demanding national to directors and employees at CENU, us, regarding no matter what aspect? made by Innovest Strategic Value Advisors. judges, the communities where we operate, CENESP and the Units located in Should we consider that they criticize Alcoa The assessment points out to companies recognize that we do make the best of our and other large world companies, leaders with the best management skills in the efforts, talents and resources with our eyes Utinga, Alphaville, Poços, Itajubá, in their industries, to attract the attention environmental, social and economic fields, turned towards these sublime goals. Itapissuma and São Luís, that he visi- of the media? in addition to good performance regarding ted personally. Contact with Alcoa CSI opportunities and risks. Fortunately, democracy gives us all free- Units in South America and Extrusion This is partially true. However, it would be dom of opinion and of the use of adjectives. a complacent attitude if we adopted such a As already disseminated, including by the However, facts show that Alcoa's posture of Plant in Tubarão, was by teleconfe- posture, without clarifying that, although newspaper O Estado de S.Paulo, in its citizenship, in Brazil and worldwide, goes far rencing, from the São Paulo Units. none of us - company, individual, entity, family, January 18th issue, Alcoa has been chosen beyond the politically correct discourse, con- organization, community - can be perfect and one of the ten most ethical multinational substantiating in a concrete reality. GENTE EM AÇÃO - 6 BRAVO! Program in 2005 surpasses previous result Once again the results of the BRAVO! Program have show that it grew from one year to the other. The participation of volunteers all over the country was 12% higher than in the previous year. In 2005, 3,655 BRAVO!s were completed in activities connected to the Program. The Poços Latin America, amounting to a total of 182,750 de Caldas Unit stood up with 85% of employees hours devoted to volunteer work and US$ participating in the program, but the other 913,750.00 in donations. Out of the 6,394 units also had a significant participation (see employees that make up the staff in Latin chart). Therefore, 2005 showed very interesting America, 57% participated in the program. In figures, that reinforce the position of Brazil in Brazil, 61% of the 5,962 employees carried out Alcoa's commitment to citizenship. Participation of Trainees BRAVO! Brasil, volunteer program addressed ties, amounting to 3,680 hours of volunteer to trainees, also produced important results. work, that provided for the donation of d US$ Around 100 interns participated in the activi- 11,261.00 to needy entities. BRAVO! 2005 - Latin America BRAVO! BRASIL 2005 Nr. Of Employees that Headcount in Porcentagem Location Nr. of Employees that Headcount in Percentage of participated in BRAVO! the location de participação Location participated in BRAVO! Brasil the location participation AFL 305 642 48% Alphaville 52 237 22% AFL 4 18 22% Alumar 1480 1841 80% Alphaville 4 27 15% Chile 3 88 3% Alumar 15 75 20% Itapissuma 676 1050 64% Juruti 10 29 34% Itapissuma 18 81 22% Poços 920 1088 85% Poços 47 63 75% São Paulo 15 173 9% Sorocaba 19 63 30% Sorocaba 2 4 50% Tubarão 169 363 47% Tubarão 2 21 10% Utinga 6 506 1% Total 92 341 27% Total 3655 6080 60% ABS Team conducts workshop in Itajubá As part of the ABS/Customers Regional review of inventory concepts, the study Team action plan, the workshop on of opportunities, and, last, the design "Inventory Planning" was conducted at of the A3 of each work group and defi- the AFT Unit, in Itajubá, from January 30 nition of action plans for 30, 60 and to February 1st, 2006, coordinated by 90 days. Alexandre Pagotti João (A&L Manager, Similarly to what in other Units, the Engineering & Quality). Focused on the positive aspects were the participation matter of Inventory - since inventory and interaction of areas and leaders, bet- control and reduction is one of the major ter understanding of processes, detection objectives for AFL this year - the work- of the teams' readiness to change, and shop analyzed three major types: the exchange of experiences. Finished Products Inventory, Raw Material Inventory, Circuit Inventory. Participants of the ABS team of the Units of Itapissuma, Alumar, Alphaville The program included the presenta- and Corporate ABS were in Itajubá for tion of the current Plant's flow, the the event. GENTE EM AÇÃO - 7 Survey defines profile of Alcoa's volunteers in Brazil Every three years Alcoa conducts a study on its volunteer work. In January, the company consolidated the results of its third survey The Community Relations work carried out by the Sheffield, Vice-President of Instituto Alcoa. majority of Alcoa Aluminio's employees has already For the survey, 1.742 questionnaires were answered placed Brazil in the first place in terms of citizenship and in all the locations throughout the Country. It shows leadership in volunteer work amongst the Company's interesting data, such as, for instance, the number of subsidiaries worldwide. In order to achieve a better monthly hours dedicated to volunteer work: 29.4% knowledge of who are those responsible for such a grati- devote over 5 hours per month to this activity; 27.6% fying position, Instituto Alcoa carries out, every three offer from 4 to 5 hours; 21.8% up to 2 hours and years, a study called Profile of Alcoa's Volunteers. "Our 21.3% contribute with 2 to 3 hours/month to volunteer goal is to obtain a better knowledge of the volunteers in work. Around 30% of volunteers have worked in the each location, as well as the features of the entire volun- Company for 11 to 20 years; a little more than 25% teer force of Alcoa in Brazil. The result of the survey have been with Alcoa from 6 to 10 years; 19%, up to 55.2% - prefer to develop their volunteer activities means hta these employees may be volunteers at the brings us closer to these volunteers and makes possible two years in the job. Other interesting data are related inside the Company, that is, with the Company's sup- services and entities they prefer. See below the results the improvement of the community work", says Suzana to volunteer activities outside Alcoa. The majority - port, and 44.8% have independent activities, and this disclosed by the survey. GENDER AGE SCHOOL BACKGROUND Incomplete Elementary School 3,1% Above 46 years of age 18 to 24 years of age Complete Elementary School Female 11,1% 10,7% 4,5% 14,1% Complete Incomplete Junior High Superior Course 4,5% 22,3% 39 to 45 years of age 21,6% 25 to 31 years of age Male 30,3% Complete Junior High Incomplete 51,2% 85,9% Superior Course 14,4% 32 to 38 years of age 26,2% TIME IN THE COMPANY VOLUNTEER ACTIVITIES OUTSIDE ALCOA MONTHLY HOURS DEVOTED TO VOLUNTEER WORK Above 25 years 3,9% 21-25 years 5,1% Up to 2 years 19,0% Up to 2 hours 21,8% Over 5 hours 29,4% 11-20 years Yes 29,1% 3-5 years 44,8% No 17,3% 55,2% 2-3 hours 21,3% 4-5 hours 6-10 years 27,6% 25,8% Volunteer activities enhance the integration of trainees in Itapissuma A group with 11 trainees that participated in the bration, the group was harmonized, since they had integration process in December at the Itapissuma experienced together over a month of training. "On that Unit, conducted, as the last integration activity, a day, the men in the group were anxious because the community action at the "Creche Beneficente children were small. However, this feeling lasted only Menino Jesus", a model entity in the city of Recife until they entered the classrooms and started to inter- that has received aid from Alcoa at other times, and act with the students. It was a wonderful experience, helps approximately 200 children. and we left the place with more strength. We went The trainees accompanied fully the last there thinking that we were going to help, and, instead, school day of the children, reading stories, we were helped. It is extremely important to perceive watching movies together, playing and partici- how a little of our time may influence the live of a child. pating in the closing celebration. It was the best day of the integration process", he con- According to the words of Hermano Alisson cluded. As a result of this action, the trainees suggest- Cardoso Brasileiro, Electrical Maintenance trainee ed to hold a BRAVO! in the same location in 2006, put- engineer, who dressed as Santa Claus for the cele- ting the Creche's computer room in full use. GENTE EM AÇÃO - 8 Regional Team Instructions for good achievements develops ABS Leaders Inside a schedule of relationship with the communities in its areas of operation, BAESA distributes booklets with instruc- Training Program tions about crops and soil management. With a view to Alcoa's growth in the near future and with the goal of training new talents in the scope of ABS concept, the Program will train leaders at worldwide level. One of the challenges undertaken by the already been identified as a priority and ABS/Customers Regional Team in 2006 will have a defined dead line. At the end of the be to prepare professionals to continue to work, they will be sent to other projects. use the System's concepts. For that " An The candidates' profile has been deter- ABS Leadership Training Program will be mined: preferably with a degree in implemented, with a specific goal of Engineering and it is also desirable to have adding them to the Company's leaders", an MBA completed until 2005, 3 to 5 years says João Bayma, Corporate ABS manager of experience in the operational or commer- and member of the ABS/Customers cial area, being fluent in English and Regional Team. The Program's structure Spanish. In additional, professionals with includes: training of Alcoa leaders; prac- superior course in other areas may also tices in specific and predetermined ABS submit their candidacy, provided they have projects in the plants and that will impact a sound experience in operational areas. the businesses; Coaching program with Also, characteristics such as initiative, ABS leaders from plants and BU'S; and innovation, creativity and good interper- behavioral and technical development pro- sonal skills are required. gram, in accordance with the Corporate "This program will provide to professio- ABS Department - Pittsburgh (AOMC - Alcoa nals the opportunity of working in different The families that were transferred due to the the resettlement, the soil management type Operations Management Consulting). projects and plants. They will also be able to construction of BAESA - Barra Grande has changed and agriculture became a strong The professionals will be internally receive training at Alcoa Units in other Hydroelectrical Plant, between the states of source of income. In order to offer support and recruited and, at the end of the process, countries, if required" says João Bayma. He Santa Catarina and Rio Grande do Sul, will information to handle the new reality,BAESA which is expected to take 24 months, they explains that the ABS leaders of each plant receive for three years, technical advice in professionals of technical aid to families area will be prepared to operate as leaders in that are part of the ABS/Customers Regional several subjects, a commitment made by developed the following instruction booklets: Alcoa Latin America's Bus, and to face the Team will coach the trainees. According to BAESA to the community. Several actions challenges presented in any plant. The dis- Bayma, the idea is that, at the end of this have been taken in this direction and the • Agricultural machines - accident prevention semination will take place in February and first edition of the program, another group most recent was the launching of four • Composting techniques - organic materials trainings are expected to start in April, and will be chosen to receive the same training. instruction booklets that will be distributed used in agriculture three professionals, in principle, will be "The trend is that the number of partici- to the population. • Peach culture - production system selected to develop projects that have pants will increase", he completes. BAESA is formed by Alcoa, majority sharehold- er that holds 42% of the shares; Companhia • Manioc culture - for use in animal feed Paulista de Força e Luz, with 25%; Companhia Alcoa is recognized as one of the most Brasileira de Alumínio, accountable for 15%; Camargo Corrêa, 9%; and DME Energia Poços According to Edson Schiavotelo, Alcoa Latin America's Institutional Relations man- sustainable companies in the world. de Caldas, also with 9%. The dwellers were used to a very simple agri- ager, "the instructions are quite didactic and help each family to develop a new business, Alcoa was appointed one of the most sustain- the Canadian Corporate Knights Inc., first pub- cultural practice, a survival practice and, with in a sustainable manner", he completed. able companies in the world for its performance lished the list with the 100 Most Sustainable and strategic capacity to handle environmental, Companies in the World in 2005. The 100 compa- social and business issues. It is the second con- nies that had the most sustainable development in secutive time that Alcoa appears on this list, the universe are publicly selected by the Index MSCI announced by the magazine Corporate Knights in World, based on research and analyses carried out January, during the World Economic Forum in by Innovest Strategic Value Advisors. The assess- Davos, Switzerland. ment considered the companies with the best man- "We are honored for having been appointed agement skills in the environmental, social and again. We are very happy for the fact that the work economic areas, in addition to good performance of our employees is recognized worldwide and we compared to opportunities and risks. According to continue to fight to take our Values to all of our Toby Heaps, founder and editor of the magazine stakeholders, today and in the long term", stated Corporate Knights, they chose 100 Companies Alain Bela, Alcoa's Chairman and CEO. amongst almost 2,000 companies worldwide. For Innovest Strategic Value Advisors Inc., interna- him, the Companies elected by Global 100 are real- tional investments research company, jointly with ly those committed to sustainability. GENTE EM AÇÃO - 9 Alcoa CSI receives the National Quality Award 2005 in Chile Announced in January, the Award recognizes companies that stand out for their management. Alcoa CSI do Chile conquered in ensured that the material with Alcoa's Work Institute (International Consulting performance. The purpose is to recognize J a n u a r y t h e N a t i o n a l Q u a l i t y Aw a r d case was delivered on time. The asses- firm specialized in assessing the quality Chilean companies and organizations 2005, organized by Centro Nacional de sors visited the Company in December of life of employees in the environment). that show excellence in their manage- Productividad y Calidad do Chile, also and expectations were strong until the It was also granted the award Ambiente ment, compared to international compa- known as ChileCalidad, that has been result was announced. "Each person Laboral Libre de Humo de Tabaco (2005) nies, by aspects that involve awareness, held since 1996. According to Guilherme that participated in the preparation of and Lugar Laboral Saludable (see article understanding, dissemination, and cul- Miranda, Alcoa South America CSI gener- this document is a winner, for the effort, on page 11), among other awards. tural changes. al manager, the National Quality Award commitment, devotion and companion- ChileCalidad is an entity formed by reflects the effort of all employees of the ship devoted to such an extensive work", The Award representatives from the Central Unitária Chilean Unit to improve global manage- said Miguel Martinez, Alcoa CSI Chile de Trabajadores (CUT), Confederación de ment processes and to establish the best general manager. Internationally recognized, the Chile La Producción y del Comercio (CPC) and standards of excellence in the Company. The award was added to other awards National Quality Award was created by a members of the Ministries of Economics, After the decision of competing for the already granted to Alcoa CSI Chile. Last Decree from the Ministry of Economics Labor and Corporación de Fomento de la Award was made, several work teams year, the company was appointed as the and is based on the Malcolm Baldrige Producción (Corfo), and is chaired by were formed to prepare the required 7th Best Company to Work for in Chile, in model, widely used in the United States, Jorge Rodrigues Grossi, Minister of documents. The commitment of all a survey conducted by Great Place to e considered a benchmark for business Economics in Chile. New Brigade Members Alcoa CSI Argentina contributes for AFL do Brasil for the Library for Blind People Project BAC XXI, of the Argentine Library for Blind The Library is a non-governmental organization People received, on February 2nd, na important con- that serves visually impaired people in Argentina tribution from Alcoa CSI in that country: a check in the and Latin America. The entity's main goal is to amount of US$ 15 thousand , destined to the pur- encourage the integration of blind people to socie- chase of equipment and raw materials to recover the ty at large by giving them access to information institution's library collection, entirely in Braille. and to culture in general. In December 22 employees of AFL do Brasil SSMA team from AFL in first aid and fire fighting. finished their training as Brigade Members of They are prepared to help in emergency cases the Unit, receiving their certificates in an event such as sudden illnesses, immobilization, that was attended by health managers and injuries, fire extinction, etc. Later on, they will be team, work safety, and environment people. trained in recycling and will expand their know- "This group's goal is to help in emergency ledge of emergency aid. actions of AFL do Brasil prioritizing human life, Luiz Dimas Pereira, employed in the Dispatch the environment, and protection of property", section of AFL and one of the new graduated stu- explained Edmilson da Silva Santos, labor and dents, says: "to be brigade member is a way to environment technician and coordinator of the contribute to the Plant where I have been working emergency brigade. for almost nine years, and to cooperate with my Brigade members are volunteers and are co-workers in emergency cases. It is always a Monica Moavro, Alcoa CSI Argentina's Human Resources supervisor, delivers the check to the Institution's representative trained by the Fire Brigade of Itajubá and by the learning experience", he concluded. GENTE EM AÇÃO - 10 Work Abroad - Alcoa is A tribute to colleagues that contribute for Alcoa's development appointed as one of the best multinational companies JOSÉ ORLANDO J. CORREA Itapissuma The ranking from the Magazine Você S/A places the Company amongst the best in Brazil in offering career development con- ditions in other countries. A Survey carried out by magazine Você Cinthia Bossi, who undertook in February sented by Brazilian professionals - the S/A, published last January, places Alcoa the management of the Development and agility in decision-making, search for ÉLIO LUIZ DO PRADO amongst the best multinational compa- Organizational Environment Management solutions and capability to do things Poços de Caldas nies to work for, taking into consideration well. "This is very well noticed abroad the possibility offered by the Company to The manager is well experienced in the and that is why Brazil is one of the coun- its executives, of working abroad. In order subject: Cinthia, who is graduated in tries that exports more professionals to to rank the multinational companies that Psychology and has na MBA in Human other Alcoa plants worldwide", she provide more opportunities to Brazilian Resouces, joined the Company in 1994 as emphasizes. And she calls the attention professionals abroad, Você S/A selected a HR trainee in the Commercial Area of to a very important issue: in addition to the foreign groups that were appointed in the Extruded Products Division. During a being prepared and competent, inherent People that make 2005 by Guia Exame/ Você S/A - The Best few years she worked in various loca- to professionals that want to work Companies to Work For, and the survey tions, and, in 2001, undertook the mana- abroad: "people should know that to go found the 23 best companies with tradi- gement of the Training and Corporate abroad, you have to have exposure, par- OSMAIR REIS DA SILVA Poços de Caldas tion to expatriate Brazilian professionals, Development, where she remained for ticipate in global projects. The process is and Alcoa is among the top three. three years. In 2004, after participating easier when people abroad see that you in a process of training management can make a difference". The result shows Alcoa's characteristic development for BU's of all regions - of recognizing and applying its profes- where she represented Latin America - This reinforces the words of Ricardo sionals in global projects - today, 35 pro- she was invited to work in Pittsburgh. "I Sayão, Energy Director for Latin America, fessionals are working in various coun- went to the area of HR , to work in the in the article published by magazine Você tries worldwide. "This position of the implementation of a global training proj- S/A, "any professional may be exportable, Company gives us the opportunity of see- ect. Those were two years of intensive provided he/she adds something to the ing the Company from a global viewpoint, experience", she tells us. According to company's structure such as skills to JOSÉ CARLOS DANZA ERRICO and this is a very rich experience, both her, the Company in Brazil is very know- deal with people from different countries Poços de Caldas professionally and personally", states ledgeable in using a characteristic pre- at the same time ". Poços makes headlines in Finnish magazine The Poços Unit was presented as an example of success in the January issue of the magazine pub- lished by Jaakko Pöyry, a Finnish multinational engi- neering company, which, among other activities, supplies local services to its clients, that is, it main- tains an office in the client's facilities in order to meet the demand. The article written by Jorge Telles, Jaakko Pöyry regional manager, introduces the Poços Unit and shows an overview of the works performed by the company at Alcoa since 2001, when the local office was established, and emphasizes the good relation- ship of the teams, mentioning the importance of the work in partnership developed by the two companies. This is a quarterly publication, distributed to Jaakko's customers all over the world. GENTE EM AÇÃO - 11 Alumar receives tribute from Fiema Alcoa CSI In December, Alumar received a plaque m e n t o f t h e S t a t e . H é l d e r Te i x e i r a , Chile is as a tribute during the closing session of the event "I Indústria em Ação", Refinery Company. M a n a g e r, represented the recognized organized by FIEMA - Federation of the Industries of Maranhão, in partnership The " I Indústria em Ação" took place as a Healthy with SESI - Social Service of the Industry and SENAI - National Service of Indus- in November and its goal was to mobilize society at large for the industry develop- Place to Work trial Apprenticeship. ment, presenting products, projects and FIEMA's President, Jorge Mendes, delivers tribute plaque to the The award was due to the important actions, in addition to approximately Refinery Manager, Hélder Teixeira contribution of the Unit for the develop- 200 stands of companies and entities. Alcoa Alumínio auditors are internationally recognized As part of the government health strategies, the Chilean government developed a national plan to certificate the companies that offer During the first week of every year, the João Cabral, who is currently working at health work conditions to their employees. In Alcoa Inc's Audit Department joins all audi- the Alcoa Aluminio's Corporate Treasury, December 2005, Alcoa was recognized by the tors worldwide to make a balance of the took home the trophy for being the audit country as a Healthy Place to Work, and was achievements in the previous year and to professional that best develops queries invited to cooperate with the Chilean program. discuss goals and objectives for the new worldwide. Queries make possible a better The aspects that were most highlighted were: year. This meeting, called Global Meeting search for information in the Company's cigarette smoke-free place, healthy meals, Conference, is the forum where the team applications, increasing the understanding maintenance of employee assistance programs, members that stood out in their activities in of internal controls and providing for better good work climate, environment protection and the previous year are recognized. This year, risk assessment. Jurema Guimarães stood incentive to the practice of physical activities. among the winners of the Award, created out for her work with communities and was Another important point was the encourage- three years ago, were João Henrique Cabral recognized as the most active amongst ment given by the Company to people's physical and Jurema Guimarães, from Alcoa auditors worldwide, in the area of health, both from the occupational viewpoint Alumínio's Auditors Group. Community Relations. Jurema Guimarães and João Henrique Cabral and in the prevention of diseases. CEPA-Alcoa is renamed Parque Ambiental Alcoa-Poços (Alcoa-Poços Environmental Park) Since the beginning of February, CEPA-Alcoa - the dissemination of environment concepts divulged opening, in May 1993, approximately 74 thousand included in the Park's Pedagogical Plan, that start- Centro de Estudos e Pesquisas Ambientais da by the Company. Installed in the Private Reserve of students that visited and/or participated in activities ed to work with the subject "Educate for Alcoa-Poços - took the name of Parque Ambiental Natural Heritage, (Reserva Particular do Patrimônio such as competitions, visits and tracks, guided by its Sustainability"- the Park opened the first track in a Alcoa-Poços. Natural), in a 207 hectares area of great environmen- professional team. In 2005 alone, 6,590 people, bauxite mining area in the state of Minas Gerais. The name change was an initiative from Alcoa tal diversity, the Park is a benchmark in including students and teachers, visited the location. The 300 m. long track ends in a belvedere, with a Latin America, due to the importance of the Park in Environmental Education, and has received, since its Last September - as part of the innovations view to the areas recovered by Alcoa-Poços. GENTE EM AÇÃO - 12 Alcoa CSI Venezuela in full expansion Installed in the city of Valencia, Alcoa CSI Venezuela has been quite strategic for the consolidation of Alcoa in that country. Created in 2000, first as a cap production become more competitive since we also offer a plant, the Alcoa CSI plant in Venezuela is cur- service package that includes technical servi- rently responsible for the trade of products manu- ces, technological development, ABS concepts, factured by Alcoa CSI Colombia. Its target is the etc.", says Guilherme. beverages market, with a certain presence of Alcoa CSI Venezuela sales volume in 2005 edible oils. ""Venezuela's market is extremely was 725 million caps, reaching sales of US$ important to use, since the country has one of 8.6 million. The expectation for 2006 is to highest per capita rates of consumption of beve- reach 1.1 billion sold caps, in total amount of rages in the region", explains Guilherme US$ 11.3 million. Major Unit's customers are Miranda, Alcoa CSI South America general ma- Coca-Cola and Pepsi-Cola bottlers, in addition nager. According to him, the Company has over to some local brands. Alcoa CSI Venezuela 60% market share in Venezuela, a percentage operates with a team of 8 professionals, led by expected to grow in 2006. "We are very opti- the Unit's supervisor, Juan Francisco Gonzalez, mistic, because, in addition to the fact that and reports to Alcoa CSI Colombia's general local economy is stabilizing, our presence has manager, Carlos Reyes. Sales reach historical record In a document announced worldwide. Alain Belda presented Alcoa Inc's 2005 balance sheet and pointed out expectations for 2006 On the beginning of January Alcoa announced due to the Gulf Coast hurricanes; an unplanned "Entering 2005, we anticipated significant pres- top-line to the highest level in Alcoa's 117-year that its 2005 income from continuing operations outage at the Portland, Australia smelter; the sures from rising input, energy costs and other history," said Belda. "In the year ahead, we don't was $1.23 billion, or $1.40 per diluted share, as impact of strikes on operations at Spanish cost inflation, but actual increases were even foresee the same sharp spikes on input prices, and the company took action to partially mitigate plants; restructuring costs for plant closings and higher, nearly $900 million for the year," said Alain our initiatives will gain further momentum to off- $878 million in impacts from raw materials, layoffs; mark-to-market losses on metal and Belda, Alcoa Chairman and CEO. set inflation and improve the bottom line. energy, and other cost inflation. metal-related activities; and integration costs "To meet that challenge, we took aggressive "As we enter 2006, the vast majority of our pri- For the fourth quarter, income from continuing for the newly acquired facilities in Russia; par- action, passing through significant price increas- mary metal production will benefit from the high- operations was $210 million, or $0.24. tially offset by a favorable legal settlement for es to downstream customers, improving our mix of est metal prices in more than 15 years," Belda Profitability was eroded by negative impacts power costs. Income from continuing operations value-added products, continuing productivity added. "And we are working to secure future totaling $93 million, or $0.11, including: lowered was $0.33 in the third quarter of 2005, and gains, and lowering taxes. That management growth in attractive markets with customers production at refineries in Jamaica and Texas $0.39 in the fourth quarter of 2004. action helped offset cost pressures and drove the around the world." World Growth In addition to negotiations and feasibility studies underway in Trinidad, Ghana and Guinea, Alcoa has a comprehensive array of growth projects that are moving ahead in refining, smelting and downstream, including: Refining expand the low-cost Pinjarra refinery by 657,000 November 2005, and the remainder is sched- Warrick, IN smelter and rolling mill while Refining growth is focused on capturing mtpy to more than 4.2 million mtpy. It is sched- uled to be finished by the end of the first quar- lowering costs through an environmental Alcoa's unique advantage of multiple options to uled to be completed in the first quarter of 2006. ter of 2006. upgrade. As part of this project the compa- build low-capital cost brownfield expansions of • Jamalco expansion - The Company's Alcoa World • Alcoa Fjardaal in Iceland - The company contin- ny purchased the rights to mine coal in existing low operating cost facilities: Alumina and Chemicals (AWAC) affiliate plans to ued progress building its first greenfield smelter nearby Friendsville, IL. expand the refinery in Clarendon, Jamaica by 1.5 in 20 years, which is now approximately 40 per- • Modernization of Pocos de Caldas smelter - • Alumar refinery expansion - The expansion million mtpy, more than doubling the refinery's cent complete. The 346,000 mtpy smelter is on- Initial work began to upgrade this Brazilian will add 2.1 million metric tons per year capacity to approximately 2.8 million mtpy. schedule to produce its first metal in April 2007. smelter with world-class environmental con- ("mtpy") in capacity, bringing the low-cost • Mosjoen, Norway anode plant - Work to build a trols to lower emissions and costs, and refinery's total capacity to 3.5 million metric Smelting carbon plant together with Elkem, our partners improve operational efficiency. tons. Work began this quarter and the expan- Growth development work includes greenfield in Norway, began in the third quarter 2004 and • Aviles, and La Coruna, Spain Soderberg sion is expected to be completed by the first and brownfield smelting projects utilizing globally is expected to be completed in time to ramp- modernizations - The Aviles modernization half of 2008. This project includes creation of competitive energy sources. up to full production in parallel with Fjardaal project is approximately 40 percent com- a bauxite mine near Juruti in Para state, in late 2007. plete and is scheduled to be fully opera- which will initially produce 2.6 million mtpy of • Alumar smelter expansion -- The expansion • Warrick, Indiana power self-generation -- The tional in the second quarter of 2007. La bauxite to supply the expansion. will add 63,000 mtpy to 433,000 mtpy in total. company began construction work to continue Coruna is scheduled to be completed in the • Pinjarra efficiency upgrade - The project will Approximately 50 percent was completed in its ability to self-generate power to fuel its second quarter of 2008.
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