SAINT PETERSBURG, Russia–Alcoa (NYSE:AA) Chairman and CEO Klaus Kleinfeld and United Shipbuilding
Corporation President Roman Trotsenko, today signed a Memorandum of
Understanding between the companies aimed at helping to develop the
Russian ship building market and increasing the use of aluminum in
Russian ship building. The signing took place at the St. Petersburg
International Economic Forum.

During preliminary consultations the parties defined potential areas for
cooperation including the technical and commercial aspects of growing
the Russian market. Aluminum has been used in marine applications since
the 1890’s and has proven itself as a lightweight, durable and
affordable material that allows ships to go faster, carry bigger
payloads and travel longer ranges.

Commenting on the signing, Klaus Kleinfeld said: “We are very
glad to start full scale cooperation with the USC, the corporation
uniting practically all the main Russian assets in shipbuilding at
present, which jointly account for more than 65 percent of the products
manufactured in the Russian ship building sector.

“New technologies and advancements are making aluminum an
increasingly popular choice for ships of all sizes throughout the
world,” Kleinfeld said. “I’m absolutely convinced that the
potential for the usage of aluminum is very high in the shipbuilding
industry, and especially in Russian shipbuilding.”

Roman Trotsenko, President of USC, said: “We appreciate the
interest of such a major partner as Alcoa to the Russian shipbuilding
industry modernization projects. We hope that our joint efforts will
bring real results in a fairly short term.”

Alcoa has been present in Russia since 1993. In 2005, the company
purchased two leading aluminum fabricating facilities Alcoa SMZ
(formerly the Samara metallurgical plant) and Alcoa Metallurg Rus
(formerly Belaya Kalitva metallurgical production plant.). Alcoa has
modernized the facilities, investing more than $750 million in upgrades.
The capabilities of the plants are now state of the art and are serving
a variety of markets in Russia and beyond. The company recently
completed a new end and tab line to complement its can sheet
capabilities in Russia to serve the growing packaging market there.
About 5500 people work at Alcoa Russia.

JSC “United Shipbuilding Corporation” is the biggest holder of
shipbuilding, ship repairing and engineering assets in the Russian
industry. Russian state is a 100 per cent shareholder of the corporation.