UABC and Alcoa signed agreement on technologic cooperation

         Moscow (Russia), New York (USA), 22.08.2007. - Alcoa and the United Aircraft Building Corporation (UABC) announced the agreement, according to which Alcoa will provide the UABC with advanced materials, modern functional concepts and production technologies for construction and manufacturing of new generation civil aircrafts.The agreement signed in the frames of the 8th International Aerospace Show MAKS 2007 provides terms for technologic cooperation aimed at the development of new generation aircrafts in accordance with the UABC's strategy to take the third place in the world rating of airplane manufacturers by 2015.
         The cooperation of the two companies in the field of the technological development is an important step for future technical and financial development of both Alcoa and the UABC. Besides the main results of this cooperation will be applied in mass production and will help to improve the characteristics of the aircrafts currently manufactured by the UABC.
         The main goals of the technologic cooperation between the UABC and Alcoa are the following:
         - Modernization of mass-produced materials to improve the characteristics of series-produced civil airplanes, for example by investing in Alcoa's plants in Samara and Belaya Kalitva.
         - Development of the competitive and advanced designs of metal airframes for new generation civil airplanes which will use improved materials, the most modern functional concepts and production technologies.
         - Introduction of the modern tie-down fitting on series-produced civil airplanes.
         - Implementation of the modern tie-down fitting on new generation civil aircrafts.
         The cooperation in the field of new generation airplanes development is a big step forward for future development of technically and commercially advanced possibilities. Besides simultaneous work on existing projects will strengthen the teamwork and will create a positive image.
         In the frames of this strategic cooperation a new Alcoa Aerospace Technology Center (AATC) will be opened in Russia. It will conduct the following researches and production activities:
         - Comprehensive tests of Russian and western alloys, including resource characteristics, conducted in cooperation with Russia's leading research institutes
         - Analysis of Russian alloys and products manufactured by Alcoa at the facilities of the Samara Metallurgical Plant and Belokalitvinskoe Metallurgical Production Association.
         - Support for certification and qualification of western alloys and materials to be used in Russian aviation technologies.
         - Understanding the principles and rules of aviation equipment construction adopted in Russia.
         - Use of licensed Alcoa products to optimize the choice of material for airframes and its construction.
         The AATC is scheduled to start its work in 2008.
In order to promote the cooperation the agreement provides terms for the establishment of the working groups on wing and fuselage, whose job will be to discuss and consult on the technical questions of development and manufacturing of new generation aircrafts. The working groups will prepare a plan of action this year.
         Technologic cooperation will be very broad and will deal with many products, including patented alloys, aerospace products - heat-treated sheets and plates, pressed and drop-forged products as well as tie-down fitting, all of which will be produced in Alcoa facilities situated 1,000 km. from Moscow.
         ‘The UABC has extensive knowledge and experience in the field of designing and building aircrafts. Combining this knowledge with Alcoa's technologic expertise in advanced aviation alloys, modern functional concepts and products we mutually strengthen our positions on the market', said UABC President and Chairman of the Board Alexey Fedorov.
      ‘We managed to create a production system for continuous modernization of our products, providing our clients with the most modern materials and technologies, which secured Alcoa's leading position in the aerospace market. We appreciate the technologic cooperation with the UABC and are sure that this agreement is the next step in the development of long-term relations between Alcoa and all Russian aviation industry', said Helmut Wieser, Alcoa's Executive Vice-President of the Global mill product department in Asia and Russia.
The United Aircraft Building Corporation was established by the Russian President's decree as of February 20, 2006 No.140 "About OAO United Aircraft Building Corporation". The corporation was officially registered on November 20, 2006. The top priority of the UABC and its constituting companies is the development, building, promoting, after-sale servicing, guarantee maintenance, modernization and utilization of civil and military aviation equipment.
         At the moment of establishment the registered capital of the corporation was 96.72b rubles, 90.1% belonging to the Russian Federation and 9.9% to private shareholders. The OAO UABC consists of the AHC Sukhoi, OAO Irkut Corporation, OAO Tupolev, "Ilyushin" International Aircraft Building Company, Gagarin Production Association from Komsomolskoe-na-Amure, Nizhny Novgorod Aircraft Building Factory "Sokol", Novosibirsk Production Association, Ilyushin Finance Co. and Finance Leasing Company.
         Alcoa is the world's leading producer of primary aluminum, aluminum products, and alum earth. It is renowned for its administration of the aluminum products manufacturers and is an active player in this industry.
Alcoa services the markets of aerospace and automobile products, packaging, building industry and commercial transport as well as industrial markets, offering its clients complex solutions for designing, technologic development, manufacturing and other services.
         Alcoa strives to become the best company in the world in the eyes of clients, shareholders and global community. The way to achieve this goal is to have financial results sufficient enough to secure an effective activity at present and in the long run. Alcoa has divisions in 44 countries of the world with a workforce of 122,000 employees. It has been in the Dow Jones Industrial Average for 45 years. For more information visit www.alcoa.com
Alcoa in Russia
         In 2005 Alcoa acquired the Samara Metallurgical Plant and Belokalitvinskoe Metallurgical Production Association. In the nearest future Alcoa intends to invest over $200m in them to develop technologies, improve work safety and environmental control, which will boost their capacity in the growing Russian market. It will also enable them to enlarge the production line for its foreign clients.
         The Samara Metallurgical Plant is Russia's biggest producer of aluminum semi-manufactured material. The facility produces a wide range of plate-rolling, pressed and drop-forged products and has clients in many industrial markets including aviation and packaging markets. The quality management system of the plant is ISO 9001/9002 standard certified. The system of environmental control is certified according to the ISO 14001:1996 standard.
         The Belokalitvinskoe Metallurgical Production Association is one of Russia's biggest producers of aluminum semi-manufactured materials. The facility produces a wide range of plate-rolling, pressed and drop-forged products. The quality management system of the plant is ISO 9001 standard certified. It is currently being certified according to the standards of the environmental control.