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Expansion in Itapissuma - Alcoa

VIEWS: 101 PAGES: 12

  • pg 1
									                                                                                                                                           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 genteemacao@alcoa.com.br
                                                                                                                                                                                              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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