Alcoa Board of Directors has approved plans for the construction of a 322,000-metric ton aluminum facility in Eastern Iceland. Alcoa's Fjardaál aluminum facility is part of the most extensive single investment in the history of Iceland, and is scheduled to begin production in 2007. The facility is being designed to be the most environmentally friendly aluminum production facility in the world. The cost of the Fjardaaál aluminum facility will be approximately $1.1 billion over the next four years. Alcoa's Fjardaál aluminum operations -- Fjardaál means "Aluminum of the Fjords" in Icelandic and derives from the local municipality, Fjardarbyggð, or "Municipality of the Fjords" -- will provide approximately 450 jobs and generate approximately 300 additional full-time equivalent positions in service-related industries, for a total of 750 new jobs. Construction of the aluminum plant in East Iceland is part of an overall economic plan by the government of Iceland to improve living standards from health care to infrastructure to communications -- not just for the region, but also for all of Iceland. Those new jobs will help strengthen and diversify the economy of East Iceland, which has seen declining employment and out-migration as traditional jobs in fisheries and farming have declined. The project will create hundreds of construction jobs in the region, helping fuel economic growth. Smelter construction is scheduled to begin in early 2005. The project will comply with all air and water quality standards of Iceland and the European Union directives scheduled to take effect in 2005 and 2010. In some areas, designed performance of the Alcoa plant goes beyond compliance. Carbon dioxide (CO2) emissions will be 25% below the earlier plan, and PFC emissions (another greenhouse gas) will be 40% less. Emissions of nitrogen oxide (NOX) will also be 80% less. Alcoa is committed to working closely with East Iceland communities to minimize disturbance during the construction and operating phases.