Kaiser Aluminum Revises Start-Up Schedule for Gramercy Alumina Refinery

HOUSTON--(BUSINESS WIRE)--Sept. 18, 2000--Kaiser Aluminum & Chemical Corporation, the operating subsidiary of Kaiser Aluminum Corporation (NYSE:KLU - news), today announced that it expects its Gramercy, La., alumina refinery to complete the first phase of its restart by the middle of the fourth quarter of 2000.

The company had previously indicated a target of commencing the first phase of operation at Gramercy (the low-temperature section of the digestion area) in the third quarter of 2000. All major systems of the digestion area required for the first phase of operation will be substantially in place by the end of the third quarter, with final completion expected to extend beyond September 30. Systems in other areas of the plant required for restart are already in operation in advance of the completion of the digestion work.

The schedule for the second phase of start-up is unchanged, as work on that phase of the project is proceeding on a parallel track. Kaiser expects to complete second-phase construction (the high-temperature portion of the digestion area) and to have the facility operating at full capacity in the first quarter of 2001.

As of September 15, 2000, Kaiser had received cumulative insurance proceeds of approximately $200 million in connection with Gramercy business interruption and property damage insurance claims.

``Our employees and contractors have done an extraordinary job on what has been a very fast-track project to get Gramercy back on line,'' said Ray Milchovich, Kaiser's president and chief executive officer. ``We are confident of hitting our targets and returning this key asset to operation. At full operation, Gramercy is designed to have lower operating cost and higher capacity than it had in the past.''

Kaiser Aluminum is a leading producer of alumina, primary aluminum, and fabricated aluminum products. MAXXAM Inc. (AMEX:MXM - news) directly and indirectly holds about 63 percent of Kaiser.