Alcoa Announces Agreement to Sell Specialty Chemicals Business

11-07-2003: Alcoa Inc. announced that Alcoa World Alumina & Chemicals (AWAC), a global alliance between Alumina Limited (40%) and Alcoa (60%), has agreed to sell Alcoa Specialty Chemicals to Rhone Capital LLC. This sale is part of the divestiture program announced by Alcoa in January.

Alcoa Specialty Chemicals has annual revenues of approximately $360 million, and employs 811 people. ASC's global platform consists of eleven operating facilities in six countries around the world. In addition to facilities in North America, Europe, Japan, and an equity stake in Australia, ASC operates production and processing centers in the growth markets of China and India. ASC's products are sold into a wide range of well established end markets including the steel production, cement production, petrochemical, plastics, automotive, non-ferrous metal production, ceramics, carpet manufacturing and electronics industries.

Terms of the sale are not being disclosed at this time. Alcoa will continue to supply alumina feedstock to Rhone. The parties expect to close the transaction within two months. UBS Investment Bank is acting as exclusive financial advisor to Alcoa in connection with this transaction.