Packaging

Alcoa Electrical and Electronic Solutions to Close Operations in Puebla, Mexico and Del Rio, Texas

Tuesday 13. May 2008 - Alcoa today announced that itsAlcoa Electrical and Electronics Solutions business will close its operations in Puebla, Mexico and its warehouse in Del Rio, Texas during the third quarter of 2008.

This decision is necessary due to lower production demand and a change in logistics processes. The restructuring will result in the permanent reduction of about 65 associates in Del Rio and approximately 1,400 in Puebla. The charges related to the restructurings were previously reported by Alcoa.

Alcoa EES employs approximately 14,000 associates in Mexico and 1,350 in the U.S. The business produces and distributes electrical distribution systems and other products for the North American light and heavy vehicle markets.

Jon A. Jensen, Alcoa EES President for Light Vehicle Market and Operations-Americas, said: “This difficult decision is the result of the competitive conditions in the marketplace, and the actions are necessary to adjust AEES capacity to market demand and to improve our logistics processes.”

Alcoa EES recognizes the impact that this workforce reduction will have on the lives of its employees, their families, and the community. Full severance, in addition to a combination of outplacement and transition support services, will be made available to all affected employees.

Alcoa Electrical and Electronic Solutions is a world leader in the design, development and production of high quality electrical and electronic distribution systems for personal and commercial vehicles, working with vehicle manufacturers and their sub-suppliers in the major automotive centers in China, Japan, Asia, Europe and the United States. Alcoa EES has more than 60 locations in 11 countries and 29,000 associates around the world focused on its customers.