Alcoa in Alliance to Produce Automotive Castings in China

SMW Automotive partnership to license VRC/PRC

September 27, 2006 -- Alcoa has agreed to license technology and sell “related production assets” to a new venture to produce aluminum castings in Wuhan, China, in a partnership with SMW Automotive Hong Kong. The world's top aluminum producer will license its vacuum riserless and pressure riserless casting (VRC/PRC) technology to Alutech Automotive Parts Ltd., SMW's wholly owned subsidiary which is establishing the new venture.

Alutech will produce cast aluminum chassis and suspension components and modules for the automotive industry in China, South Korea, and Japan, as well as across the Asia Pacific market. The plant is scheduled to start up in 2008.

SMW Automotive Hong Kong is a wholly owned subsidiary of Concord Intl., Troy, MI, a privately held Tier 1 supplier of chassis and brake components and systems. Concord has operations in the U.S., Canada, France, Brazil, and China.

The specific terms of the partnership have not been released, but Alcoa stated it provides for the two partners to “identify, develop and launch programs.” According to Alcoa Auto and Truck Structures president Misha Riveros, Jacobson, “This marks our official establishment of a commercial footprint in China and complements and adds to Alcoa's current VRC/PRC aluminum casting capabilities in the U.S. and Europe.”

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